By Julie Tomascik
Editor

Texas Farm Bureau (TFB) called for continued investment in agricultural finance programs and policies that strengthen the resiliency of Texas farms and ranches during testimony before the House Committee on Agriculture and Livestock Aug. 18.

TFB addressed the implementation of HB 43 and broader challenges affecting the resiliency of Texas agriculture.

HB 43 implementation
Lawmakers invested $100 million in the Texas Agriculture Finance Authority (TAFA) in 2025 and approved reforms aimed at improving programs available to farmers and ranchers.

Demand, however, has far exceeded the available funding. Applications under the improved programs requested over $335 million in assistance, more than three times the amount appropriated.

“Those numbers tell us two things. First, as you know, the need is real. Second, producers see these programs as an important tool for keeping their operations afloat during challenging economic conditions,” said Charlie Leal, TFB state legislative director, who testified on behalf of the organization.

TFB asked lawmakers to continue funding TAFA at or above the levels established in 2025. The organization also recommended changes to the Interest Rate Reduction Program to stretch available funding further and serve more applicants.

Under the current structure, TAFA must commit an amount equal to the full value of an approved loan. TFB recommended replacing that structure with an Interest Rate Rebate Program or expanding the interest rebate component of the Agricultural Loan Guarantee Program.

Resiliency of Texas agriculture
Economic pressures, loss of agricultural land, water shortages, feral hogs and access to crop protection tools were among the issues TFB highlighted as threats to agricultural resiliency.

“Texas farmers and ranchers are resilient by nature. Every day they face droughts, floods, wildfires, narrow profit margins, volatile markets, rising costs, pests and regulatory uncertainty,” Leal said. “But resiliency is not just about surviving challenges. It is about ensuring farmers and ranchers have an environment where they can have economic sustainability.”

Over the last several years, Texas farmers and ranchers have faced a perfect storm of challenges, including high input costs, low commodity prices and repeated natural disasters. Texas recorded an estimated $3.4 billion in agricultural losses in 2024 alone.

Inflation has also increased farm production costs by roughly 34% since 2020.

Adding to those financial pressures is the continued loss and rising cost of agricultural land.

Texas has lost about 3.7 million acres of working lands to nonagricultural uses, including 1.8 million acres in the last five years.

The agricultural land that remains is costly. According to the Texas Land Trends report, agricultural land values have increased by more than 500% over the past 25 years, and the average appraised market value of working lands has risen 55% since 2017.

“Less land for agricultural production harms the economic viability of agricultural operations because less land means less income per acre to support the operation,” Leal said.

Higher land costs also make it more difficult for young farmers and ranchers to begin an operation and for existing farms and ranches to acquire the land needed to expand.

Urban development isn’t the only source of pressure on working lands, though. Texas already has an estimated 220,000 acres of solar facilities, and growing data center development is creating additional demand for land.

Water availability also remains one of the most significant challenges facing Texas agriculture.

Drought and extreme heat accounted for 66% of the state’s agricultural disaster losses in 2024. The Ogallala Aquifer, the primary source of agricultural irrigation in the High Plains, continues to decline, while irrigation shortages have left thousands of acres of rice ground unplanted along the Lower Colorado River. And water shortages in the Lower Rio Grande Valley have contributed to annual losses estimated at nearly $1 billion.

TFB stressed that resiliency depends on farmers and ranchers maintaining access to tools needed to grow food, fuel and fiber efficiently.

Leal noted concerns about potential restrictions on crop protection products as discussions surrounding the Make America Healthy Again movement continue and encouraged lawmakers to support science-based regulation of those products.

Feral hogs pose another threat. They accounted for about $871 million in agricultural losses in Texas in 2024 through crop and pasture damage, erosion and disease concerns. TFB noted the arrival of New World screwworm creates an additional risk because unmanaged feral hog populations could accelerate the pest’s spread and impact. The organization called for a dedicated, reliable funding source for feral hog mitigation and population control.

“The resiliency of Texas agriculture depends on our ability to help producers withstand economic pressures, maintain access to essential production tools, secure reliable water resources and protect livestock from emerging threats,” Leal said.