Texas Agricultural Loans & Grants After HB 43
The 2025 TAFA modernization law raised loan limits, opened the former “Young Farmer” programs to producers of every age, widened grant amounts to as much as $500,000, and created a new pest-and-disease program — but statutory authorization is not the same as an open application window.
What the Texas Agricultural Finance Authority is
The Texas Agricultural Finance Authority (TAFA) operates within the Texas Department of Agriculture and provides financial-assistance programs — loans, loan guarantees, interest-rate assistance, and grants — for the expansion, development, and diversification of Texas agriculture under Chapter 58 of the Texas Agriculture Code. In 2025, the 89th Texas Legislature passed House Bill 43 (author Rep. Stan Kitzman et al.; Senate sponsor Sen. Charles Perry per the official record), which modernized those programs. HB 43 became law and took effect immediately on June 20, 2025.
What HB 43 changed
The interest-rate reduction program is no longer just for “young” farmers
Before HB 43, the interest-rate reduction program was limited by statute to producers between the ages of 18 and 46, with loans up to $500,000. According to the official bill analyses, HB 43 struck the age range, increased the maximum loan amount to $1,000,000, and lowered the maximum state-set deposit rate from four percent to one percent — changes designed to reduce the interest burden borrowers carry through participating lenders.
The Young Farmer Grant Program became the Agriculture Grant Program
HB 43 renamed Subchapter G of Chapter 58 the “Agriculture Grant Program” and reworked it substantially. Under the amended statute, a grant may not be less than $5,000 or more than $500,000 (the prior ceiling was $20,000), the matching burden on the recipient was changed from a full match to 10 percent of the amount received, the age restriction was removed, and eligibility extends to an agricultural producer or agricultural business — with grant purposes that include maintaining agricultural businesses, maintaining agricultural uses of land, fostering supply-chain resiliency, and the creation and expansion of agricultural businesses in Texas. The law also redefined “agricultural business” and revised the composition of TAFA’s board of directors.
A new pest, disease, and depredation program
HB 43 added a new Subchapter H to Chapter 58 establishing a pest and disease control and depredation program, involving the Texas Animal Health Commission and Texas A&M AgriLife, and directed the commissioner of agriculture to adopt implementing rules.
Where implementation stands
Statutes authorize programs; agency rules and funding open them. The Texas Department of Agriculture published notice of a TAFA rule review in the October 10, 2025 Texas Register and published proposed rule changes implementing HB 43 — including renaming the “Young Farmer” rule subchapters, updating the Agriculture Grant Program rules, and adding new pest-and-disease-program rules — in the December 5, 2025 Texas Register. Because rulemaking proceeds in stages and program windows open and close, always check the Texas Department of Agriculture’s current TAFA and grant-opportunity pages, and the Texas Register, for the current status of any program before planning around it.
Authorization is not an open application
HB 43 changed what the statute allows — it did not guarantee that money is available to any particular applicant. Funding is not guaranteed, grants may be competitive, loan applicants remain subject to lender underwriting, and program-specific match, eligibility, and documentation requirements control. Statutory maximums ($1,000,000 loans; $500,000 grants) are ceilings, not entitlements. Review the current official program terms before making financial commitments that depend on assistance.
Questions Texans ask
Does HB 43 give money directly to farmers?
No law automatically sends payments. HB 43 restructured loan, guarantee, and grant programs administered through TAFA; producers and eligible businesses apply through the programs’ own processes when application periods are open, under the rules in effect at that time.
I’m over 46 — can I now apply?
HB 43 removed the statutory age range from the former “young farmer” programs, so age no longer bars participation under the statute. Every other eligibility requirement in the statute and current rules still applies.
Does this affect my homestead or property taxes?
Not directly. HB 43 is an agricultural-finance law. Property-tax questions on agricultural land run through separate law — see the agricultural-appraisal guides in the Agriculture, Rural Land & Working Lands hub.
The takeaway
HB 43 (effective June 20, 2025) modernized TAFA: loans in the interest-rate reduction program now reach $1,000,000 with no age restriction, the renamed Agriculture Grant Program authorizes grants of $5,000 to $500,000 with a 10 percent match, eligibility extends to agricultural businesses, and a new pest-and-disease-control program was created. What any producer can actually receive depends on the current rules, funding, and application windows — verify those with the Texas Department of Agriculture before relying on any amount.
Official sources
- Texas Legislature Online — HB 43 (89R): history, text, and official bill analyses
- HB 43 — final enrolled text
- Texas Agriculture Code, Chapter 58 (current text)
- Texas Department of Agriculture — Texas Agricultural Finance Authority
- Texas Register (Secretary of State) — TAFA rule review and proposed HB 43 implementation rules
Last reviewed July 22, 2026 against the official Texas Legislature Online record, the enrolled bill text, and the Texas Register. Program rules, funding, and application windows change; verify current terms with the Texas Department of Agriculture. This page provides educational information only and is not legal, tax, or financial advice.