Section 1

Details NCGA findings and the act's purpose.

Section 2

Adds new article to Chapter 106, Article 61B, Small Farmers Support Grant Program (Program).

Enacts GS 106-748. Defines Commissioner as the Commissioner of Agriculture and Consumer Services; Department as the NC Department of Agriculture and Consumer Services; eligible individual as a resident of the state who is at least 21 years old, a small farmer, and had an annual income of at least $1,000 from farming operations in the preceding taxable year; eligible purpose as purchases of mechanized equipment for harvest and crop management, farm infrastructure that includes livestock fencing, and food processing equipment; and small farmer as a farmer with a gross cash farm income less than or equal to $300,000 determined as the Department specifies.

Enacts GS 106-749 establishing the Program within the Department and the Small Farmer Growth Fund (Fund) as a special revenue fund. Requires the Fund to be used to provide grants to eligible individuals for essential inputs, equipment, and operational improvements. Details grant procedures and restrictions. Requires the Department to establish an advisory committee to monitor the Program’s efficacy, Requires the Department to adopt rules to carry out the Article’s provisions.

Section 3.(a)

Appropriates $20 million in recurring funds for 2025-26 from the General Fund to the Department, to be allocated as follows: (1) $12 million to the Program established in GS 106-749 for any eligible purpose of the Program; (2) $3 million to the Program for grants for new or additional cold storage equipment for storage of fresh produce or meat; (3) $4 million to provide a grant to the Carolina Farm Steward Association for the FarmsSHARE program; and (4) $1 million to the Program to be used for bridge loans to enable eligible farmers to participate in the Environmental Quality Incentives Program under the Natural Resources Conservation Service of the US Department of Agriculture (NRCS EQIP). The program will loan money on terms that coincide with the NRCS EQIP grant contract and loans must be paid directly back to the Program.

Section 3.(b)

Permits Department to retain up to 1% of appropriated funds for administrative costs and establish two positions as detailed to support these initiatives. 

Section 4

Amends the lower income threshold for sales tax exemption for farmers in GS 105-164.13E. Defines a qualifying farmer as a person who has either an annual income from farming operations for the preceding taxable year or an average annual income from farming operations for the three preceding taxable years of $7,500 or more (was, $10,000 or more for both). Makes conforming change to the conditional exemption documentation required in subsection (b).

Effective July 1, 2025. Section 4 of this act applies to exemption certifications issued on or after that date.