House agricultural committee approves bills on manufacturing, taxes

On Wednesday, the North Carolina House of Representatives Standing Committee on Agriculture and Environment approved the Farmers Assistance Grant Program and the Ag Manufacturing Economic Development bills. 

The Farmers Assistance Grant Program, HB 348, extends to six years the carryforward period for deferred property taxes on present-use value lands and allows the excess tax revenue from Years Four through Six to fund local grant programs for eligible farmers. County boards and city councils must establish these grant funds to support the sustainability and growth of agricultural, horticultural, and forest economies. A maximum of five grants per farmer is capped at $10,000 or 10% of fund balances.

The legislation would mandate the North Carolina Department of Revenue create a standardized statewide application for grant eligibility. In addition, the bill would require city councils to obtain approval from county commissioners before annexing specific non-contiguous present-use value properties if the proposed zoning would strain public school capacity. The various provisions take effect between July and October 2025, with tax carryforward changes applicable starting July 1, 2026. This bipartisan legislation is sponsored by state Reps. Jeffrey McNeely, R-Iredell; Cody Huneycutt, R-Stanly; and B. Ray Jeffers, D-Person. 

“The difference between taxes due on the present-use basis and the taxes that would have been payable in the absence of this classification, together with any interests, penalties, or costs that may accrue thereon, are a lien on the real property of the taxpayer” reads the bill. “The difference in taxes must be carried forward in the records of the taxing unit or units as deferred taxes.”

The committee also approved the Ag Manufacturing Economic Development, HB 552, bipartisan legislation sponsored by Reps. Robert Reives, D-Chatham; Jimmy Dixon, R-Duplin; Howard Penny, R-Harnett; and B. Ray Jeffers, D-Person. This is a companion bill to SB 530, sponsored by Sen. Jim Burgin, R-Harnett, and came out of the joint legislative co-economic development caucus manufacturing study. 

“This bill would establish an agricultural manufacturing investment grant within the One NC Fund. It would not require any additional appropriations, merely establish a separate account within the existing fund focused on developing North Carolina agricultural manufacturing,” said Reives in presenting to the committee.

Rep. Pricey Harrison, D- Guilford, addressed her concerns with the bill. 

“I just want to confirm that it doesn’t include any manufacturing of, like, potentially toxic pesticides, and that sort of thing. Is it strictly limited? I was trying to figure out the way it’s defined, if it just includes buildings and infrastructure on farmland,” asked Harrison. 

“As I read it, it’s agriculture manufacturing supporting rural areas. I don’t know if it limits that industry,” responded Reives. 

From the Legislative Analysis Division at the North Carolina General Assembly, Chris Saunders further addressed her concerns. 

“Agriculture manufacturing isn’t defined in here, but it does favor practices of precision agriculture, artificial intelligence-driven automation, biotechnology, or a combination thereof; those are the sort of prioritized projects,” said Saunders. 

SB 552 was given a favorable report and referred to the House standing Commerce and Economic Development Committee. 

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