Tennessee U.S. Representative David Kustoff (R-TN-08) on Monday announced that he filed the Grown in America Act of 2024 with four cosponsors, Representatives Jim Costa (D-CA-21), David Rouzer (R-NC-07), Mike Carey (R-OH-05), and Mark Alford (R-MO-04).
If passed, the legislation would incentivize corporations to buy farm commodities grown in the United States through a tax credit accounting for 25 percent of the total cost of such items, with major companies able to save up to $100 million per year by buying American.
The legislation appears to apply to any business that uses agricultural commodities, including food manufacturers, restaurants, grocery stores, and any other company or individual that purchases directly from farmers.
In order to qualify for the tax credit, businesses must purchase at least 50 percent of their company’s total agricultural commodities from U.S. farmers, over a three-year average, in 2025.
By 2031, to be eligible for the tax credit, businesses would need to purchase 85 percent of their agricultural commodities from American farmers.
Kustoff said in a press release that the legislation would serve the country’s national security by strengthening its agriculture, calling it “imperative” to keep farmers from “losing out to foreign competitors.”
The Tennessee Republican stated, “Incentivizing businesses to purchase from American farmers will help strengthen our supply chains, stimulate domestic investment and job creation, and reduce our over-reliance on foreign markets.”
Tennessee previously restricted foreign individuals and companies from purchasing farmland in Tennessee in 2023, when Governor Bill Lee signed legislation limiting the ability of property owned by entities designated or sanctioned by the U.S. government to buy new farmland, and requiring such individuals and groups to register their ownership with the State of Tennessee.
There are more than 60,000 farms in Tennessee, according to the 2022 U.S. Census of Agriculture, with 98 percent owned by families. About 360,000 people are employed in agriculture and forestry in the Volunteer State, contributing nearly $90 billion to the state’s economy, including $5.1 billion per year.
Currently, Tennessee Farm Bureau reports the state’s top export markets include China, Canada, Turkey, and the Netherlands.
While the legislation may increase demand for American-produced agricultural goods, Georgia Attorney General Chris Carr recently pointed to the Biden-Harris administration’s plan to increase the pay for foreign farm labor, urging the incoming Trump administration to reverse the plan in a letter sent to those nominated by President-elect Donald Trump to lead the Department of Labor and Department of Agriculture.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
This is how government works. It increases taxes and inflation to the point that people can’t afford to produce/buy goods, then it uses YOUR tax money to give incentives to producers, who wouldn’t have needed YOUR tax money if government wasn’t so incompetent/crooked in the first place……… and the people will applaud this.🙄