AN ACT to establish a corn farmers recovery act and TO appropriate funds for that purpose.

The General Assembly of North Carolina enacts:

Part I. Legislative findings

SECTION 1.1.  The North Carolina General Assembly makes the following findings for corn farming in 2024:

(1)        Corn farming is a cornerstone of North Carolina's agricultural economy, with approximately 900,000 acres dedicated to its cultivation and generating over seven hundred fifty‑six million nine hundred thousand dollars ($756,900,000) in cash receipts. Thousands of farmers rely on corn production to support livestock feed, ethanol, and food processing industries.

(2)        In 2024, North Carolina's corn farmers faced unprecedented challenges due to extreme weather events, including severe drought, excessive rainfall, and multiple hurricanes. These disasters resulted in widespread crop losses, infrastructure damage, and significant financial strain on farm operations.

(3)        The United States Department of Agriculture issued multiple secretarial disaster declarations covering affected counties, recognizing the devastating impact on corn production. While federal assistance has provided some relief, additional State support is necessary to aid recovery and ensure future resilience.

(4)        North Carolina's corn farmers have demonstrated resilience by adopting conservation practices and improved farming techniques. However, targeted investment in disaster relief, infrastructure, and research is essential to stabilize the industry and protect the State's agricultural economy.

part iI. transfers and appropriations

SECTION 2.1.(a)  Transfer. – The State Controller shall transfer the sum of eighty‑nine million five hundred eight thousand seven hundred ninety‑two dollars ($89,508,792) from the State Emergency Response and Disaster Relief Fund to the Department of Agriculture and Consumer Services (Department).

SECTION 2.1.(b)  Appropriation. – The funds transferred in subsection (a) of this section are appropriated to the Department for the 2024 Agricultural Disaster Corn Crop Loss Program, as established in Part III of this act. These funds and remaining funds from Section 5.9A(c)(2) of S.L. 2021‑180 and Section 5.4(a)(4)a. of S.L. 2022‑74 shall be used to assist farmers in counties designated by the United States Department of Agriculture as agricultural disasters that occurred during 2024 in this State.

part iii. 2024 agricultural DIsaster corn crop loss program

SECTION 3.1.(a)  Agricultural Disaster Corn Crop Loss Program. – The 2024 Agricultural Disaster Corn Crop Loss Program is established within the Department of Agriculture and Consumer Services. The Program shall be used to provide financial assistance to farmers with verified losses of corn from an agricultural disaster in this State in 2024. The Department may use up to one percent (1%) of funds allocated for the Program for administrative purposes. To be eligible for financial assistance for losses of corn, a person must satisfy all of the following criteria:

(1)        The person experienced a verifiable loss of corn, as a result of an agricultural disaster in 2024, and the person's farm is located in an affected area for the respective agricultural disaster.

(2)        The corn was planted but not harvested on or before the eligibility date. For purposes of this subsection, the term eligibility date refers to the date of the disaster set forth in the Secretarial declaration for the county in which the corn is located and for which verifiable losses are claimed.

SECTION 3.1.(b)  Verification of Loss. – A person seeking financial assistance for losses of corn under the Program shall submit to the Department a Form 578 on file with the USDA Farm Service Agency or a form provided by the Department for reporting acreage or plantings of corn crops or loss that is not typically reported on Form 578, along with any other documentation deemed appropriate by the Department, no later than 45 days after this section becomes effective. For corn crops where the survival level is not immediately known, the Department may extend this deadline by an additional 45 days, upon written request by the person received no later than 45 days after this section becomes effective and upon approval by the Department. A person receiving assistance under this Program must provide a signed affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate.

SECTION 3.1.(c)  Criteria. – The Department shall administer the financial assistance program authorized by this section in accordance with the following criteria:

(1)        In determining the payment calculation for corn, the Department shall use a formula based on acreage, county loss estimates, USDA National Agricultural Statistics Service averages, and any other measure the Department deems appropriate. Funds shall be distributed based on county averages for yields and State averages for price. Calculations shall be based on county or State averages in price, whichever the Department determines is appropriate.

(2)        The Department shall gather all claim information, except from those applicants granted a deadline extension, no later than 45 days after this section becomes law. The Department shall, as closely as possible, estimate the amount of the funds needed to be held in reserve for payments related to losses of corn crops for which losses will not be fully known or calculated. The Department shall set aside funds as it deems appropriate based on the estimated percentage of these losses.

(3)        Payments made under this Program shall be made to the person who filed the Form 578 or Department form for claims related to corn losses.

SECTION 3.1.(d)  Audit. – The Department may audit the financial and other records of each recipient of funds in order to ensure that the funds are used in accordance with the requirements of this Program. The Department may require any documentation or proof it considers necessary to efficiently administer this Program, including the ownership structure of each entity and the social security numbers of each owner. In order to verify losses, the Department may require the submission of dated, signed, and continuous records. These records may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash register tape, invoices for custom harvesting, u‑pick records, and insurance documents.

SECTION 3.1.(e)  Expenditure of Awarded Funds. – Awarded funds shall be used for agricultural production expenses and recovery of losses due to the impacts of an agricultural disaster in 2024. The Department shall develop guidelines and procedures to ensure that funds are expended for the purposes allowed by this section and may require any documentation it determines necessary to verify the appropriate use of financial assistance awards, including receipts. All distributed funds are subject to federal and State income tax.

SECTION 3.1.(f)  Refund of Award. – If a person receives financial assistance under this Program for which the person is ineligible, or if the amount of the financial assistance received is based on inaccurate information, the person forfeits the assistance awarded under this section and is liable for the amounts received. Assistance forfeited under this section shall bear interest at the rate determined in accordance with G.S. 105‑241.21 as of the date of receipt until repaid. Financial assistance forfeited but not paid shall be collected by a civil action in the name of the State, and the recipient shall pay the cost of the action. The Attorney General, at the request of the Commissioner of Agriculture, shall institute the action in the proper court for the collection of the award forfeited, including interest thereon.

SECTION 3.1.(g)  Definitions. – For purposes of this section, the following definitions apply:

(1)        Agricultural disaster. – A secretarial disaster designation declared by the United States Department of Agriculture Secretary for qualifying counties in this State.

(2)        Corn. – A cereal plant of the grass family (Zea mays) and an edible grain.

(3)        Department. – The Department of Agriculture and Consumer Services.

(4)        Person. – Any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity or group.

(5)        Program. – The 2024 Agricultural Disaster Corn Crop Loss Program.

SECTION 3.1.(h)  Program Reporting Requirement. – The Department shall submit a report to the Fiscal Research Division no later than the first day of the month six months after this section becomes effective, and every six months thereafter until all funds are expended or the Program expires, containing, at a minimum, all of the following data:

(1)        The number of applicants and the county in which the person incurred the verified loss.

(2)        The number and amount of grants awarded.

(3)        The geographic distribution of the grants awarded.

(4)        The total amount of funding available to the Program, the total amount encumbered, and the total amount disbursed to date.

(5)        Any refunds made to the Program pursuant to subsection (f) of this section.

SECTION 3.1.(i)  Expiration and Reversion. – The Program shall expire 30 months after this section becomes effective. Any funds allocated to the Program not expended or encumbered by that date shall revert to the State Emergency Response and Disaster Relief Fund.

part iv. effective date

SECTION 4.1.  This act is effective when it becomes law.