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Bill Summary · HB 296

Summary — HB 296: Corn Farmer Recovery Act — Phase I

Status: Introduced (First Edition text provided).
Subject: Establishes a state disaster relief program and appropriates funds for corn crop losses sustained in 2024.

Main purpose

HB 296 creates the "2024 Agricultural Disaster Corn Crop Loss Program" to provide State financial assistance to North Carolina corn producers who suffered verifiable losses from agricultural disasters in 2024. The bill transfers and appropriates funds to the Department of Agriculture and Consumer Services (NCDA&CS) to make payments intended to help producers recover production expenses and lost crop value.

Key provisions and changes

  • Funding transfer and appropriation

    • Directs the State Controller to transfer $89,508,792 from the State Emergency Response and Disaster Relief Fund to NCDA&CS.
    • Those funds (plus remaining funds referenced from prior session laws) are appropriated to the newly created 2024 program.

  • Program administration

    • The program is established within NCDA&CS; the Department may use up to 1% of allocated funds for administration (up to approximately $895,088 of the $89.5M appropriation).
    • NCDA&CS is authorized to develop guidelines, application forms and procedures.

  • Eligibility

    • Applicants must have verifiable losses of corn caused by a USDA Secretarial disaster declaration for 2024.
    • Eligible losses are for corn that was planted but not harvested on or before the "eligibility date" identified in the USDA declaration for the county.
    • Applicants must submit either USDA Farm Service Agency (FSA) Form 578 (acreage report) or a Department-provided form plus any additional documentation required.

  • Deadlines

    • Claims and supporting documentation must be submitted no later than 45 days after the section becomes effective.
    • For crops with uncertain survival, the Department may grant a one-time 45‑day extension upon timely written request.

  • Payment calculation and distribution

    • Payments will be calculated using a formula the Department designs incorporating acreage, county loss estimates, USDA NASS averages and other appropriate measures.
    • Distribution uses county averages for yields and State averages for price (or county vs. State price as determined by the Department).
    • Payments are made to the person who filed the Form 578 or Department claim form.

  • Compliance, audit and recovery

    • NCDA&CS may audit recipients and require documentation (e.g., receipts, scale tickets, settlement sheets, insurance documents, ownership records, SSNs).
    • Awards are taxable under federal and State law.
    • Recipients found ineligible or who provided inaccurate information must forfeit funds and repay amounts with interest as provided by statute.

Who is affected

  • Primary: North Carolina corn producers (farm owners/operators) in counties covered by USDA 2024 agricultural disaster declarations whose corn was planted and not harvested by the applicable eligibility date.
  • Secondary: NCDA&CS (administration), State Emergency Response and Disaster Relief Fund (source of transferred funds), taxpayers (appropriation reduces that fund balance).

Fiscal and timeline notes

  • Immediate fiscal impact: appropriation of $89,508,792 to NCDA&CS for the program.
  • Up to 1% of the appropriation may be used for administration (~$895,088).
  • Applicants must file claims within 45 days of the section’s effective date (with a possible 45-day extension in limited cases).

Implementation considerations

  • NCDA&CS must establish application, verification and payment procedures quickly to meet statutory filing windows.
  • Robust audit and verification procedures are required to limit improper payments.
  • The bill requires coordination with USDA FSA and use of Form 578 data for verification.

If you want, I can produce a short checklist for producers on required documentation and filing steps or draft talking points for stakeholder briefings.

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

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