HB 43 Texas House · 89th Legislature (2025)

Relating to the Texas Agricultural Finance Authority and certain programs administered by the authority.

HB 43 amends Texas law to update the definition of "agricultural business" in the Agriculture Code, explicitly including rural recreational businesses (like hiking or fishing on farmland) and nonprofit land conservation groups. It also revises the composition of the Texas Agricultural Finance Authority's board, requiring the governor to appoint nine members with specific representation: two young farmers/ranchers, two representatives from rural entities (chambers, trade associations), and others with agricultural lending expertise. These changes directly affect entities applying for the Authority's loan and grant programs, such as farmers, ranchers, rural tourism businesses, and conservation nonprofits. The bill became law on June 20, 2025, after passing both chambers unanimously.

Bill status signed all 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

May 2025

Signed into Law

Jun 2025

Introduced Mar 14, 2025 Signed Jun 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 5 edits · Jun 20, 2025

MODERATE

This bill amends the Texas Agricultural Finance Authority's governing code to expand its scope beyond traditional agricultural lending to include broader rural economic development, pest and disease control programs, and support for state agencies and higher education institutions. The changes also update board composition requirements, adjust age limits for young farmer programs, and establish new grant and loan provisions to diversify agricultural support mechanisms.

Scope change

Expanded from primarily agricultural business lending to include rural economic development, pest/disease control, and support for state agencies and institutions of higher education engaged in agricultural activities.

DEFINITION

Broadened the definition of 'agricultural business' to include eligible applicants, boll weevil eradication entities, agriculture-related businesses in rural areas, state agencies, institutions of higher education engaged in agricultural production, and nonprofit organizations focused on maintaining agricultural land use.

ELIGIBILITY

Adjusted age requirements for young farmer programs from 18-46 years to remove the upper age limit, and updated eligibility criteria to include broader categories of agricultural businesses and rural entities.

FISCAL

Added new loan and grant provisions including a new Subchapter H for pest and disease control programs, expanded loan amounts for boll weevil eradication, and created new funding mechanisms for state agencies and higher education institutions involved in agricultural development.

REQUIREMENT

Modified board composition requirements to include representatives from rural chambers of commerce, foundations, trade associations, and other agricultural-related entities, while reducing the number of young farmer and family farm representatives on the board.

TIMELINE

Updated effective date provisions to allow for immediate effect with a two-thirds legislative vote, or September 1, 2025 if that threshold is not met.

Introduced → Engrossed · 7 edits · May 25, 2025

MODERATE

This bill significantly restructures the Texas Agricultural Finance Authority by expanding its board composition, broadening the definition of eligible agricultural businesses, and adding new programs for pest control and interest rate reductions. The changes aim to modernize the authority's governance, increase support for diverse agricultural enterprises including young farmers and rural businesses, and enhance disease and pest management capabilities.

Scope change

The bill expands the scope of the Texas Agricultural Finance Authority from primarily focusing on agricultural lending to include broader rural economic development, pest and disease control programs, and expanded eligibility for various types of agricultural businesses and young farmers.

REQUIREMENT

Board composition changed from 11 members to 9 members with updated appointment categories, including two new members who must operate family farms or ranches and revised representation for young farmers.

New requirement for the authority to submit annual budgets by August 1 and board approval by September 1, with restrictions on expenditures if budget is not adopted by September 2.

SCOPE

New Subchapter H establishes a pest and disease control program providing financial assistance to the Texas Animal Health Commission and related agencies for controlling agriculture-related pests, diseases, or predators.

DEFINITION

Definition of 'agricultural business' expanded to include recreational activities on agricultural land, state agencies producing agricultural products, and nonprofit organizations maintaining agricultural land use.

ELIGIBILITY

Young farmer eligibility criteria changed from age 18-45 to include two persons who operate family farms or ranches, removing the strict age requirement for some participants.

FISCAL

Grant program maximum amount increased from $500,000 to $500,000 with minimum grant amount set at $5,000, and new funding sources added for pest control programs from the Texas agricultural fund.

TIMELINE

Budget submission deadline changed from January 1 to August 1, with board review deadline moved to September 1.

Floor votes · House Apr 23, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 20, 2025

Signed into law

Signed by the Governor

executive

May 31, 2025

Upper · Passed

Signed in the Senate

upper

May 30, 2025

Lower · Passed

Signed in the House

lower

May 28, 2025

Introduced

House concurs in Senate amendment(s)-reported

upper

May 28, 2025

Introduced

Text of Senate Amendment(s)

lower

May 28, 2025

Introduced

House concurs in Senate amendment(s)

lower

May 27, 2025

Introduced

Senate Amendments Analysis distributed

lower

May 27, 2025

Introduced

Senate Amendments distributed

lower

May 26, 2025

Lower · Passed

Senate passage as amended reported

lower

May 25, 2025

Upper · Passed

Passed

upper

May 25, 2025

Upper · Passed

Passed to 3rd reading as amended

upper

May 25, 2025

Upper · Passed

Amended

upper

May 25, 2025

Introduced

Amendment(s) offered

upper

May 20, 2025

Upper · Passed

Committee report printed and distributed

upper

May 20, 2025

Upper · Passed

Reported favorably as substituted

upper

May 19, 2025

Upper · Passed

Vote taken in committee

upper

May 19, 2025

Upper · Passed

Testimony taken in committee

upper

Apr 24, 2025

Committee

Referred to Water, Agriculture, & Rural Affairs

upper

Apr 24, 2025

Introduced

Read first time

upper

Apr 23, 2025

Introduced

Received from the House

upper

Apr 23, 2025

Lower · Passed

Passed

lower

Apr 22, 2025

Lower · Passed

Passed to engrossment

lower

Apr 15, 2025

Lower · Passed

Committee report sent to Calendars

lower

Apr 14, 2025

Lower · Passed

Committee report distributed

lower

Apr 9, 2025

Lower · Passed

Reported favorably as substituted

lower

Apr 1, 2025

Lower · Passed

Left pending in committee

lower

Apr 1, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Mar 14, 2025

Committee

Referred to Agriculture & Livestock

lower

Mar 14, 2025

Introduced

Read first time

lower

6 primary · 51 co-sponsors