HB 43 – Taxpayer subsidy expansion

HB 43 broadens who can receive taxpayer-backed agricultural loans and grants—by removing age restrictions, allowing businesses and nonprofits—to compete for the same limited pool of funds. It raises the maximum grant from $20,000 to $100,000 and the loan cap from $500,000 to $750,000, while also reducing the match requirement from a full 1:1 match to just 10%. While these changes may sound supportive of agriculture, they weaken the original intent of programs designed to help young or beginning farmers enter the market. By removing guardrails, the bill risks diverting taxpayer resources to well-established players who are better positioned to apply and qualify for benefits. Instead of targeting limited funds toward next-generation producers, HB 43 opens the door for those with more capital and influence to crowd out new entrants. It also creates a new pest and disease control program, further stretching the Texas Agricultural Fund. From a fiscally conservative and limited government standpoint, the bill unnecessarily expands state lending programs, dilutes their focus, and further distorts the agricultural market.