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SB 2606

Agriculture - As introduced, under certain conditions, requires the department of agriculture to purchase and distribute round hay baling machines to applicants in the hay equipment portion of the Tennessee agricultural enhancement program in lieu of making cost-share grants associated with the purchase of the machines. - Amends TCA Title 43.

114th Regular Session (2025-2026) Introduced by Steve Southerland

The Department of Agriculture will directly purchase and distribute round hay baling machines to TAEP hay equipment applicants, replacing cost-share grants.

Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee
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Bill Summary · SB 2606

Summary of Tennessee SB 2606 (Session 114)

Purpose and intent

  • This bill amends Tennessee Code Annotated, Title 43, to modify how the Tennessee Agricultural Enhancement Program (TAEP) supports hay production equipment, specifically round hay baling machines.
  • The core shift is to have the Department of Agriculture directly purchase and distribute round hay baling machines to eligible applicants, using funds from the department’s TAEP fund, rather than providing cost-share grants for machines.

Key provisions and changes

  1. Direct purchase and distribution

    • The Department of Agriculture must use TAEP funds to directly purchase and distribute round hay baling machines to applicants in the hay equipment portion of TAEP.

  2. Pre-October 1, 2026 milestone

    • By October 1, 2026, the department must purchase 100 round hay baling machines.

  3. Post-October 1, 2026 application option

    • Beginning on or after October 1, 2026, an applicant may choose to receive one machine directly from the department in lieu of purchasing a machine and applying for a cost-share grant for that purchase.

  4. Eligibility

    • Except for the changes noted (re: reimbursement and cost-share requirements), applicants must meet all other eligibility and program requirements to receive a machine.

  5. Impact on cost-share eligibility

    • An applicant who receives a machine directly from the department becomes ineligible for a cost-share grant in the hay equipment portion of TAEP for a period determined by a formula: the cost of the machine divided by $12,000.

  6. Effective date

    • The act takes effect upon becoming law.

Affected entities

  • Department of Agriculture: Responsible for purchasing and distributing the machines using TAEP funds.
  • TAEP participants: Hay producers who apply for TAEP assistance in the hay equipment portion; their choice between receiving direct machines or pursuing cost-share grants affects eligibility timelines.
  • Tennessee agricultural community: Potentially benefits from streamlined access to baling equipment and the stated capital allocation approach.

Procedural and timeline notes

  • Legislative action history shows movement through the Senate with introductions and committee referrals in early February 2026.
  • A concrete target is set: purchase of 100 machines by October 1, 2026.
  • After October 1, 2026, applicants have the option to accept a machine directly from the department rather than pursuing a cost-share grant, with a concomitant eligibility restriction for cost-share funding.

Potential implications

  • Simplifies access to round hay baling machines for TAEP participants by centralizing procurement under the Department of Agriculture.
  • Shifts the funding mechanism from cost-share grants to direct provision, potentially affecting how TAEP funds are allocated and spent.
  • Introduces a disincentive for taking a direct machine (ineligibility timing) to receive cost-share grants in the hay equipment portion, based on the machine’s cost relative to a $12,000 benchmark.
  • Could impact the speed and reach of equipment distribution, given a fixed initial purchase target (100 machines) and subsequent applicant uptake choices.

If you’d like, I can provide a side-by-side comparison with the current TAEP cost-share structure to illustrate the net fiscal and programmatic impact.

Compiled from official sources — confirm details with the bill’s official record.

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