Tennessee’s agriculture department is seeking $20 million to boost farm support programs as one of the state’s biggest industries faces a historic drop in net farm income.
The department requested $15 million for the Agricultural Enterprise Fund, which supports agricultural job creation and economic development, and $5 million for the Tennessee Agricultural Enhancement Program, which offers cost-sharing for producers making long-term farm investments.
While Tennessee has made hundreds of millions of dollars in investments in agriculture and forestry, the industries face “pretty strong headwinds,” Commissioner Charlie Hatcher said during a budget proposal presentation to Gov. Bill Lee on Nov. 12.
(READ MORE: Big farms draw property tax break from Tennessee lawmakers)
Nationwide, farms are expected to see a $10.2 billion decrease in net farm income in 2024, following a drop in 2023 of $43.3 billion, according to the U.S. Department of Agriculture. In Tennessee, weather events including the recent flood in Northeast Tennessee and severe drought in some counties add pressure to an industry already burdened by inflation. The state has lost 432,000 acres of farmland since 2017, according to the department.