Agriculture

Plain English Breakdown

The bill summary does not provide specific information on how long the TARIFF relief fund will remain active beyond June 30, 2027.

Tennessee Agriculture Recovery and Investment in Family Farm (TARIFF) Relief Act

This bill creates a fund within the state treasury to provide grants up to $10,000 for Tennessee family farmers affected by tariffs on agricultural products, equipment, and machinery since April 1, 2025.

What This Bill Does

• Creates the TARIFF relief fund within the state treasury for providing financial assistance to eligible family farmers.
• Requires the Department of Agriculture to use the fund to provide grants up to $10,000 to family farmers who have been affected by tariffs on agricultural products and equipment since April 1, 2025.
• Specifies that the fund will receive $130 million from the state's revenue fluctuation reserve in fiscal year 2026-2027.
• Requires the Department of Agriculture to develop an application form for farmers to apply for grant funds and establish eligibility requirements and award procedures.
• Makes the TARIFF relief fund subject to examination and audit by the comptroller of the treasury.

Who It Names or Affects

• Family farmers in Tennessee who own or lease land used primarily as a farm and have been affected by tariffs on agricultural products, equipment, and machinery since April 1, 2025.
• The Department of Agriculture which will manage the TARIFF relief fund.

Terms To Know

Family farmer

A natural person who is a resident of Tennessee and owns or leases land in this state that is principally used as a farm, producing crops, plants, animals, nursery, or floral products with an average gross agricultural income of at least $1,500 per year over the three-year period before applying for grants.

TARIFF relief fund

A fund within the state treasury created to provide financial assistance in the form of grants up to $10,000 to eligible family farmers affected by tariffs on agricultural products and equipment.

Limits and Unknowns

• The bill does not specify how long the TARIFF relief fund will remain active or what happens after June 30, 2027.
• It is unclear if there are additional sources of funding beyond the $130 million from the revenue fluctuation reserve.

Official Summary Text

This bill creates
a fund within the state treasury to be known as the Tennessee agriculture recovery and investment in family farm (TARIFF) relief fund
("fund")
. The fund consists of grants, appropriations by the general assembly, and any other moneys made available to the department of agriculture
("department")
from any other source. It is the legislative intent that the fund also consists of
$130
million to be transferred from the balance of the revenue fluctuation reserve in fiscal year 2026-2027.

Subject to appropriations and the availability of funds,
this bill requires
the department
to
use the fund to provide grants in the amount of up to $10,000 to
residents of this state who own or lease

land in this state that is principally used as a farm
("
family farme
r")
who, on or after April 1, 2025, have been struggling with high input costs and market losses as a result of tariffs on agricultural products, equipment, and machinery, including retaliatory and reciprocal tariffs, whether imposed by the fe
deral government or foreign countries. The department
must
develop and publish an application form for family farmers to apply for grant funds
, which
must require a demonstration of need. The department
must also
establish grant eligibility requirements and award procedures.

"FARM" DEFINED

As used in this bill, a "farm" means
a tract of land of at least 15 acres constituting a farm unit engaged in the production of growing crops, plants, animals, or nursery or floral products that produced gross agricultural income averaging at least $1,500

per year over the three-year period immediately preceding the date of a grant application under this
bill
.

AUDIT

This bill provides that the fund
is subject to examination and audit by the comptroller of the treasury.

FALSE CLAIMS VIOLATIONS

If
a person filing a claim or invoice for a grant or grant funds knowingly makes a false, fictitious, or fraudulent statement or representation, or knowingly submits false, fictitious, or fraudulent documentation or information to the department, then
this bill provides that
such person is liable under the False Claims Act
.

RULEMAKING

This bill authorizes rules to be
promulgated in order to ensure the funds are received and expended for the purposes consistent with this
bill.

Current Bill Text

HOUSE BILL 2191
By Jones J

SENATE BILL 2687
By Kyle
SB2687
012359
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 9 and
Title 43, relative to assistance for farmers.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 9, Chapter 4, Part 2, is amended by
adding the following as a new section:
9-4-217.
(a) This section is known and may be cited as the Tennessee Agriculture
Recovery and Investment in Family Farm (TARIFF) Relief Act.
(b) As used in this section:
(1) "Family farmer" means a natural person who is a resident of this state
and who owns or leases land in this state that is principally used as a farm; and
(2) "Farm" means a tract of land of at least fifteen (15) acres constituting
a farm unit engaged in the production of growing crops, plants, animals, or
nursery or floral products that produced gross agricultural income averaging at
least one thousand five hundred dollars ($1,500) per year over the three-year
period immediately preceding the date of a grant application under this section.
(c) There is created a fund within the state treasury to be known as the
Tennessee agriculture recovery and investment in family farm (TARIFF) relief fund. The
fund consists of grants, appropriations by the general assembly, and any other moneys
made available to the department of agriculture for the purposes of such fund from any
other source or sources. It is the legislative intent that the fund also consists of one
hundred thirty million dollars ($130,000,000) to be transferred from the balance of the
revenue fluctuation reserve in fiscal year 2026-2027.

- 2 - 012359

(d) Moneys deposited in the TARIFF relief fund must be invested for the benefit
of the fund pursuant to § 9-4-603.
(e) Any unexpended and unobligated moneys in the TARIFF relief fund at June
30, 2027, must be returned to the revenue fluctuation reserve.
(f) Subject to appropriations and the availability of funds, the department shall
use the TARIFF relief fund to provide grants in the amount of up to ten thousand dollars
($10,000) to family farmers who, on or after April 1, 2025, have been struggling with high
input costs and market losses as a result of tariffs on agricultural products, equipment,
and machinery, including retaliatory and reciprocal tariffs, whether imposed by the
federal government or foreign countries.
(g) The department shall develop and publish an application form for family
farmers to apply for grant funds. The application must require a demonstration of need.
The department shall establish grant eligibility requirements and award procedures.
(h) The TARIFF relief fund is subject to examination and audit by the comptroller
of the treasury.
(i) If a person filing a claim or invoice for a grant or grant funds knowingly makes
a false, fictitious, or fraudulent statement or representation, or knowingly submits false,
fictitious, or fraudulent documentation or information to the department, then such
person is liable under the False Claims Act, compiled in title 4, chapter 18.
(j) Rules may be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5, in order to ensure the funds are received
and expended for the purposes consistent with this section.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.