An Act amending Title 3 (Agriculture) of the Pennsylvania Consolidated Statutes, in Agriculture-Linked Investment Program, further providing for legislative intent, for definitions, for general authority of commission and for Agriculture-Linked Investment Program.

PRINTER'S NO. 3695
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2660
Session of
2026
INTRODUCED BY KERWIN, STAATS, JAMES, WALLEN AND ZIMMERMAN,
JUNE 22, 2026
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
JUNE 24, 2026
AN ACT
Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
Statutes, in Agriculture-Linked Investment Program, further
providing for legislative intent, for definitions, for
general authority of commission and for Agriculture-Linked
Investment Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 602, 603, 604 and 605(c)(1) of Title 3
of the Pennsylvania Consolidated Statutes are amended to read:
§ 602. Legislative intent.
It is the intent of the General Assembly [that farmers be
offered an incentive to use agricultural best management
practices as part of an approved nutrient or odor management
plan, manure management plan, agricultural erosion and
sedimentation plan or Federal conservation plan to prevent
nutrients from washing off farm fields and animal concentration
areas and entering surface water and groundwater, to prevent
soil erosion, to reduce or mitigate odor and to conserve land,
water and related natural resources. These incentives shall take
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
the form of low-interest capital in exchange for the
implementation of such approved practices.] to:
(1) Offer farmers access to affordable capital in order
to encourage the adoption of conservation measures that
improve soil health, water quality and odor mitigation.
(2) Encourage a new generation of farmers.
(3) Assist farmers with other capital needs.
§ 603. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
["Agricultural erosion and sedimentation plan." An erosion
and sedimentation plan established under The Clean Streams Law.]
"Agricultural commodity." As defined in section 2 of the act
of June 10, 1982 (P.L.454, No.133), referred to as the Right-to-
Farm Law.
"Agricultural production." As defined in section 3 of the
act of June 30, 1981 (P.L.128, No.43), known as the Agricultural
Area Security Law.
"Beginning farmer." A person that:
(1) Has demonstrated experience in the agriculture
industry or related field or has transferable skills as
determined by the department.
(2) H as not received Federal gross income from
agricultural production for more than the 10 most recent
taxable years.
(3) Intends to engage in agricultural production or the
production of an agricultural commodity within the borders of
this Commonwealth and to provide the majority of the labor
and management involved in that agricultural production.
20260HB2660PN3695 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Best management practices." A practice or combination of
practices determined by the commission to be effective and
practicable, given technological, economic and institutional
considerations, to manage and conserve land, water and related
resources and to manage nutrients to protect surface water and
groundwater, taking into account applicable nutrient
requirements for crop utilization or to manage odors. [Best
management practices shall include, but not be limited to:
(1) Conservation tillage.
(2) Crop rotation.
(3) Soil testing.
(4) Manure testing.
(5) Diversions.
(6) Manure storage facilities.
(7) Storm water management practices.
(8) Nutrient application.
(9) Stream bank fencing.
(10) Riparian buffers.
(11) Pasture livestock watering systems where stream
bank fencing is installed.
(12) Odor barriers.
(13) Development of a voluntary nutrient or odor
management plan.
(14) Manure management plans.
(15) Agricultural erosion and sedimentation plans.
(16) Federal conservation plans.]
"Commission." The State Conservation Commission established
by the Conservation District Law.
"Conservation District Law." The act of May 15, 1945
(P.L.547, No.217), known as the Conservation District Law.
20260HB2660PN3695 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Eligible borrower." Any person, individual, partnership,
corporation or legal entity who has an interest in property in
this Commonwealth[, who engages in agricultural operation in
this Commonwealth, who has legal and financial responsibility
for the agricultural operation and who has developed an approved
nutrient management plan under Chapter 5 (relating to nutrient
management and odor management), a manure management plan or an
agricultural erosion and sedimentation plan or other commission-
approved Federal or State conservation program or approved best
management practices.] and:
(1) Is engaged in or intends to engage in agricultural
production or the production of an agricultural commodity in
this Commonwealth.
(2) Has or will have legal and financial responsibility
for the agricultural production.
"Lending institution." Any financial institution that is
authorized to issue commercial loans, is a State depository
approved by the Board of Finance and Revenue and enters into an
agreement with the State Treasurer for participation in the
Agriculture-Linked Investment Program. The term includes any
agricultural credit association affiliated with the Farm Credit
Bank, a federally chartered instrumentality pursuant to the Farm
Credit Act of 1971 (Public Law 92-181, 12 U.S.C. § 2001 et
seq.), as amended, that enters into an agreement with the State
Treasurer for participation in the Agriculture-Linked Investment
Program.
["Manure management plan." A manure management plan
established under The Clean Streams Law.
"Nutrient management plan." A written site-specific nutrient
plan approved by the commission or its delegated agent which
20260HB2660PN3695 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
incorporates best management practices to manage the use of
plant nutrients for crop production and water quality
protection consistent with the criteria established under
Chapter 5.
"Odor management plan." A written site-specific plan
approved by the commission or its delegated agent which
incorporates best management practices to reduce or mitigate
odor consistent with the criteria established under Chapter 5.
"The Clean Streams Law." The act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law.]
§ 604. General authority of commission.
(a) Authority.--The commission shall retain and may utilize
the authority established in the Conservation District Law and
Chapter 5 (relating to nutrient management and odor management)
as well as any other authority delegated or bestowed upon the
commission in the administration of this chapter, including
money appropriated, given, granted or donated to the commission
for the purposes of this chapter. Nothing in this chapter shall
be construed to abrogate or abridge the authority of the
commission under any other statute or grant of authority.
[(b) Best management practices.--
(1) The commission or the commission's delegated agent
may review applications to approve the best management
practice for which the applicant is seeking a loan under this
chapter.
(2) The commission may vote to expand the list of best
management practices to assure new technological,
environmental and scientific advances and discoveries. The
commission may consider and make available practices
established in statute or regulation to further the purposes
20260HB2660PN3695 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of this chapter. Upon establishing a new best management
practice, the commission shall submit a notice to the
Legislative Reference Bureau for publication in the
Pennsylvania Bulletin. A new best management practice shall
take effect upon publication in the Pennsylvania Bulletin.]
(c) Lending priorities.--The commission or the commission's
delegated agent may review applications to determine if the
application aligns with lending priorities as approved by the
commission.
(d) Eligible projects.--
(1) The commission shall vote at least once a year on
the types of projects that it will prioritize for lending,
with consideration given to capital improvements and
expenditures related to agricultural production or the
production of an agricultural commodity within the borders of
this Commonwealth.
(2) The commission may consult with the department in
establishing criteria for eligible projects.
(3) Eligible projects include:
(i) Best management practices as determined by the
commission.
(ii) The purchases of farms by beginning farmers.
(iii) Projects that help agricultural operations
address agricultural nutrients or odor concerns or that
produce energy from agricultural or animal by-products.
(iv) Other lending priorities as established by the
commission in consultation with the department.
§ 605. Agriculture-Linked Investment Program.
* * *
(c) Terms of loan for borrowers.--The terms of the loans for
20260HB2660PN3695 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
borrowers shall be:
(1) Loans shall not exceed [$250,000] $500,000.
* * *
Section 2. This act shall take effect in 60 days.
20260HB2660PN3695 - 7 -
1
2
3
4