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HB599 • 2026

Agriculture value chains; grants, funds, training by Agriculture Department for value chain infrastructure required

Agriculture value chains; grants, funds, training by Agriculture Department for value chain infrastructure required

Agriculture
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Hall (L)
Last action
2026-03-10
Official status
Pending Committee Action in House of Origin
Effective date
Not listed

Plain English Breakdown

The bill text does not provide specific details on the operation of the loan fund beyond favorable terms and support areas.

Agriculture Value Chains; Grants and Training for Farmers

This bill requires the Department of Agriculture to provide grants, training, and funding to farmers, ranchers, and agricultural cooperatives to improve infrastructure in agriculture value chains.

What This Bill Does

  • Requires the Department of Agriculture to establish a grant program for eligible producers (farmers, ranchers, and agricultural cooperatives) for expenses related to cold storage, refrigeration systems, small-scale processing equipment, and packing stations.
  • Authorizes the department to provide matching funds to these groups for launching new sales, participating in farmers markets or procurement programs, and branding campaigns.
  • Requires the department to offer training and assistance to eligible producers on business development, regulatory compliance, food safety certifications, e-commerce strategies, and direct sales methods.
  • Provides planning and construction grants to nonprofits, local governments, and cooperatives for regional food hubs, shared-use commercial kitchens, and distribution centers serving at least five independent producers.

Who It Names or Affects

  • Farmers
  • Ranchers
  • Agricultural cooperatives
  • Nonprofits, local governments, and cooperatives involved in regional food hubs

Terms To Know

Value Chain Infrastructure
Includes cold storage facilities, aggregation facilities, processing equipment, packaging tools, and transport assets.
Eligible Producer
A farmer, rancher, or agricultural cooperative engaged in commercial food or fiber production.

Limits and Unknowns

  • The bill requires the Legislature to appropriate funds for these programs.
  • Details on how the loan fund will operate are not specified beyond favorable terms and support areas.

Bill History

  1. 2026-03-10 House

    Pending Committee Action in House of Origin

  2. 2026-03-10 House

    Read for the first time and referred to the House Committee on Ways and Means General Fund

Official Summary Text

Agriculture value chains; grants, funds, training by Agriculture Department for value chain infrastructure required

Current Bill Text

Read the full stored bill text
HB599 INTRODUCED
Page 0
HB599
KHS4JU5-1
By Representatives Hall, Daniels, Clarke, Lands, Drummond,
Jackson, Warren, Rafferty, Morris, Hendrix, Travis, Datcher,
Sellers, McCampbell, Moore (M), Bracy, Tillman, Lawrence,
Chestnut, Hassell, Ensler, McClammy, Hollis, Gray
RFD: Ways and Means General Fund
First Read: 10-Mar-26
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KHS4JU5-1 02/18/2026 ZAK (L)ma 2025-3536
Page 1
First Read: 10-Mar-26
SYNOPSIS:
This bill would require the Department of
Agriculture and Industries to establish a grant program
for farmers, ranchers, and agriculture cooperatives for
value chain infrastructure related expenses and to
provide certain training to these persons.
This bill would authorize the department to
provide matching funds to these persons for launching
new sales, participating in farmers markets or
procurement programs, and branding and marketing
campaigns.
This bill would require the department to
provide planning and construction grants to nonprofits,
local governments, and cooperatives for regional food
hubs, shared-use commercial kitchens, and distribution
centers serving local producers.
This bill would also require the department to
establish a revolving loan or loan guarantee fund for
investment in value chain infrastructure.
A BILL
TO BE ENTITLED
AN ACT
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HB599 INTRODUCED
Page 2
Relating to agriculture value chains; to require and
authorize the Department of Agriculture and Industries to
provide training to farmers, ranchers, and agriculture
cooperatives; to establish a value chain infrastructure grant
program for these persons; to provide matching funds to these
persons for new sales, participation in farmers markets or
procurement programs, and branding and marketing campaigns; to
provide planning and construction grants to certain entities
for regional food hubs, shared-use commercial kitchens, and
distribution centers serving local producers; and to establish
a loan fund for investment in value chain infrastructure.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Farm-to-Market Value Chain Development Act.
Section 2. For purposes of this act, the following
terms have the following meanings:
(1) DEPARTMENT. The Department of Agriculture and
Industries.
(2) ELIGIBLE PRODUCER. A farmer, rancher, or
agricultural cooperative engaged in commercial food or fiber
production.
(3) VALUE CHAIN INFRASTRUCTURE. Includes cold storage,
aggregation facilities, processing equipment, packaging tools,
and transport assets.
Section 3. (a) Subject to the Legislature appropriating
funds for this purpose, t he department shall establish and
administer a grant program for eligible producers for:
(1) Cold storage and refrigeration systems;
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HB599 INTRODUCED
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(1) Cold storage and refrigeration systems;
(2) Small-scale value-added processing equipment; and
(3) Packing and washing stations.
(b) Grants may not exceed fifty thousand dollars
($50,000) per applicant and shall require at least a 25
percent cost share.
Section 4. (a) The department shall offer training and
assistance to eligible producers in:
(1) Business development and accounting;
(2) Regulatory compliance and food safety
certifications; and
(3) E-commerce and direct sales strategies.
(b) Services may be delivered through regional
extension offices or contracted providers.
Section 5. (a) Subject to the Legislature appropriating
funds for this purpose, the department may provide matching
funds to eligible producers for:
(1) Launching sales to new retail or wholesale
accounts;
(2) Participating in farmers markets or institutional
procurement programs; and
(3) Branding and marketing campaigns.
(b) Awards shall not exceed twenty five thousand
dollars ($25,000) per project.
Section 6. (a) Subject to the Legislature appropriating
funds for this purpose, t he department shall provide planning
and construction grants to nonprofits, local governments, and
cooperatives for:
(1) Regional food hubs;
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HB599 INTRODUCED
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(1) Regional food hubs;
(2) Shared-use commercial kitchens; and
(3) Distribution centers serving local producers.
(b) Facilities shall serve at least five independent
producers and meet food safety requirements.
Section 7. (a) Subject to the Legislature appropriating
funds for this purpose, the department shall establish a
revolving loan or loan guarantee fund for capital investment
in value chain infrastructure.
(b) Loans shall have favorable terms and may support:
(1) Equipment purchases;
(2) Facility construction or retrofits; and
(3) Transport vehicle acquisition.
Section 8. This act shall become effective on July 1,
2027.
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