Corn Farmer Recovery Act - Phase I.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 296

Short Title: Corn Farmer Recovery Act - Phase I. (Public)
Sponsors: Representatives B. Jones, Penny, Brisson, and Cairns (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
March 6, 2025
*H296-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A CORN FARMERS RECOVERY ACT AND TO APPROPRIATE 2
FUNDS FOR THAT PURPOSE. 3
The General Assembly of North Carolina enacts: 4
5
PART I. LEGISLATIVE FINDINGS 6
SECTION 1.1. The North Carolina General Assembly makes the following findings 7
for corn farming in 2024: 8
(1) Corn farming is a cornerstone of North Carolina's agricultural economy, with 9
approximately 900,000 acres dedicated to its cultivation and generating over 10
seven hundred fifty-six million nine hundred thousand dollars ($756,900,000) 11
in cash receipts. Thousands of farmers rely on corn production to support 12
livestock feed, ethanol, and food processing industries. 13
(2) In 2024, North Carolina's corn farmers faced unprecedented challenges due to 14
extreme weather events, including severe drought, excessive rainfall, and 15
multiple hurricanes. These disasters resulted in widespread crop losses, 16
infrastructure damage, and significant financial strain on farm operations. 17
(3) The United States Department of Agriculture issued multiple secretarial 18
disaster declarations covering affected counties, recognizing the devastating 19
impact on corn production. While federal assistance has provided some relief, 20
additional State support is n ecessary to aid recovery and ensure future 21
resilience. 22
(4) North Carolina's corn farmers have demonstrated resilience by adopting 23
conservation practices and improved farming techniques. However, targeted 24
investment in disaster relief, infrastructure, and r esearch is essential to 25
stabilize the industry and protect the State's agricultural economy. 26
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PART II. TRANSFERS AND APPROPRIATIONS 28
SECTION 2.1.(a) Transfer. – The State Controller shall transfer the sum of 29
eighty-nine million five hundred eight thousand seven hundred ninety-two dollars ($89,508,792) 30
from the State Emergency Response and Disaster Relief Fund to the Department of Agriculture 31
and Consumer Services (Department). 32
SECTION 2.1.(b) Appropriation. – The funds transferred in subsection (a) of this 33
section are appropriated to the Department for the 2024 Agricultural Disaster Corn Crop Loss 34
Program, as established in Part III of this act. These funds and remaining funds from Section 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 296-First Edition
5.9A(c)(2) of S.L. 2021 -180 and Section 5.4(a)(4)a. of S.L. 2022 -74 shall be used to assist 1
farmers in counties designated by the United States Department of Agriculture as agricultural 2
disasters that occurred during 2024 in this State. 3
4
PART III. 2024 AGRICULTURAL DISASTER CORN CROP LOSS PROGRAM 5
SECTION 3.1.(a) Agricultural Disaster Corn Crop Loss Program. – The 2024 6
Agricultural Disaster Corn Crop Loss Program is established within the Department of 7
Agriculture and Consumer Services. The Program shall be used to provide financial assistance 8
to farmers with verified losse s of corn from an agricultural disaster in this State in 2024. The 9
Department may use up to one percent (1%) of funds allocated for the Program for administrative 10
purposes. To be eligible for financial assistance for losses of corn, a person must satisfy all of the 11
following criteria: 12
(1) The person experienced a verifiable loss of corn, as a result of an agricultural 13
disaster in 2024, and the person's farm is located in an affected area for the 14
respective agricultural disaster. 15
(2) The corn was planted but not harvested on or before the eligibility date. For 16
purposes of this subsection, the term "eligibility date" refers to the date of the 17
disaster set forth in the Secretarial declaration for the county in which the corn 18
is located and for which verifiable losses are claimed. 19
SECTION 3.1.(b) Verification of Loss. – A person seeking financial assistance for 20
losses of corn under the Program shall submit to the Department a Form 578 on file with the 21
USDA Farm Service Agency or a form provided by the Department for reporting acreage or 22
plantings of corn crops or loss that is not typically reported on Form 578, along with any other 23
documentation deemed appropriate by the Department, no later than 45 days after this section 24
becomes effective. For corn crops where the survival level is not immediately known, the 25
Department may extend this deadline by an additional 45 days, upon written request by the person 26
received no later than 45 days after this section becomes effective and upon approval by the 27
Department. A person receiving assistance under this Program must provide a signed affidavit, 28
under penalty of perjury, certifying that each fact of the loss presented by the person is accurate. 29
SECTION 3.1.(c) Criteria. – The Department shall administer the financial 30
assistance program authorized by this section in accordance with the following criteria: 31
(1) In determining the payment calculation for corn, the Department shall use a 32
formula based on acreage, county loss estimates, USDA National Agricultural 33
Statistics Ser vice averages, and any other measure the Department deems 34
appropriate. Funds shall be distributed based on county averages for yields 35
and State averages for price. Calculations shall be based on county or State 36
averages in price, whichever the Department determines is appropriate. 37
(2) The Department shall gather all claim information, except from those 38
applicants granted a deadline extension, no later than 45 days after this section 39
becomes law. The Department shall, as closely as possible, estimate the 40
amount of the funds needed to be held in reserve for payments related to losses 41
of corn crops for which losses will not be fully known or calculated. The 42
Department shall set aside funds as it deems appropriate based on the 43
estimated percentage of these losses. 44
(3) Payments made under this Program shall be made to the person who filed the 45
Form 578 or Department form for claims related to corn losses. 46
SECTION 3.1.(d) Audit. – The Department may audit the financial and other records 47
of each recipient of funds i n order to ensure that the funds are used in accordance with the 48
requirements of this Program. The Department may require any documentation or proof it 49
considers necessary to efficiently administer this Program, including the ownership structure of 50
each en tity and the social security numbers of each owner. In order to verify losses, the 51
General Assembly Of North Carolina Session 2025
House Bill 296-First Edition Page 3
Department may require the submission of dated, signed, and continuous records. These records 1
may include, but are not limited to, commercial receipts, settlement sheets, wa rehouse ledger 2
sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, 3
contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash 4
register tape, invoices for custom harvesting, u-pick records, and insurance documents. 5
SECTION 3.1.(e) Expenditure of Awarded Funds. – Awarded funds shall be used 6
for agricultural production expenses and recovery of losses due to the impacts of an agricultural 7
disaster in 2024. The Department shall develop guidelines and procedures to ensure that funds 8
are expended for the purposes allowed by this section and may require any documentation it 9
determines necessary to verify the appropriate use of financial assistance awards, including 10
receipts. All distributed funds are subject to federal and State income tax. 11
SECTION 3.1.(f) Refund of Award. – If a person receives financial assistance under 12
this Program for which the person is ineligible, or if the amount of the financial assistance 13
received is based on inaccurate information, the person forfeits the assistance awarded under this 14
section and is liable for the amounts received. Assistance forfeited under this section shall bear 15
interest at the rate determined in accordance with G.S. 105-241.21 as of the date of receipt until 16
repaid. Financial assistance forfeited but not paid shall be collected by a civil action in the name 17
of the State, and the recipient shall pay the cost of the action. The Attorney General, at the request 18
of the Commissioner of Agriculture, shall institute the action in the proper court for the collection 19
of the award forfeited, including interest thereon. 20
SECTION 3.1.(g) Definitions. – For purposes of this section, the following 21
definitions apply: 22
(1) Agricultural disaster. – A secretarial disaster designation declared by the 23
United States Department of Agriculture Secretary for qualifying counties in 24
this State. 25
(2) Corn. – A cereal plant of the grass family (Zea mays) and an edible grain. 26
(3) Department. – The Department of Agriculture and Consumer Services. 27
(4) Person. – Any individual, trust, estate, partnership, receiver, association, 28
company, limited liability company, corporation, or other entity or group. 29
(5) Program. – The 2024 Agricultural Disaster Corn Crop Loss Program. 30
SECTION 3.1.(h) Program Reporting Requirement. – The Department shall submit 31
a report to the Fiscal Research Division no later than the first day of the month six months after 32
this section becomes effective, and every six months thereafter until all funds are expended or 33
the Program expires, containing, at a minimum, all of the following data: 34
(1) The number of applicants and the county in which the person incurred the 35
verified loss. 36
(2) The number and amount of grants awarded. 37
(3) The geographic distribution of the grants awarded. 38
(4) The total amount of funding a vailable to the Program, the total amount 39
encumbered, and the total amount disbursed to date. 40
(5) Any refunds made to the Program pursuant to subsection (f) of this section. 41
SECTION 3.1.(i) Expiration and Reversion. – The Program shall expire 30 months 42
after this section becomes effective. Any funds allocated to the Program not expended or 43
encumbered by that date shall revert to the State Emergency Response and Disaster Relief Fund. 44
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PART IV. EFFECTIVE DATE 46
SECTION 4.1. This act is effective when it becomes law. 47