Historic investment
FFA, 4-H, TAEP, and state fairs among ag entities represented in 2025-2026 Tennessee State Budget
By Mark Johnson
The Tennessee State Budget recently reflected $140 million in targeted agricultural investments, positioning the state’s farms, food systems, and rural infrastructure for long-term sustainability. From farmland preservation and meat-processing expansion to youth education and ag-tech innovation, this year’s budget shows a diverse approach to strengthening the backbone of Tennessee’s economy — its farmers, ranchers, landowners, and rural communities.
Tennessee’s agricultural sector received a massive boost this spring with the passage of the state’s $59.8 billion fiscal year 2025–2026 budget. Approved by the General Assembly on April 16, the spending plan includes more than $140 million in targeted agricultural investments, positioning the state’s farms, food systems, and rural infrastructure for long-term sustainability.
From farmland preservation and meat processing expansion to youth education and ag-tech innovation, this year’s budget reflects a diverse approach to strengthening the backbone of Tennessee’s economy — its farmers, ranchers, landowners, and rural communities.
“This budget reflects a strong commitment not only to our producers but also to the future of agriculture in this state,” said Tennessee Farmers Cooperative CEO Shannon Huff. “I can’t tell you how proud I am that TFC is such an important element of a state that continues to place agriculture, both currently and in the future, high on its priority list.” 4-H and FFA The largest single line item in the agricultural category — $90.5 million — is earmarked for FFA and 4-H camp infrastructure improvements, including much-needed updates to facilities like Camp Clements and Lone Oaks Farm as well as new STEM (science, technology, engineering, and math) centers — multi-purpose classrooms and laboratories that will be used to enhance educational outreach activities.
“The new STEM centers and cabins will significantly enhance the mission of Tennessee 4-H by providing state-of-the-art facilities for hands-on learning and innovation,” said Tennessee 4-H Foundation Executive Director Ryan Hensley. “These additions will empower youth with critical skills in science, technology, engineering, and mathematics, fostering a new generation of leaders prepared to tackle future challenges. By aligning programming with state educational standards, we ensure that our initiatives not only inspire but also meet the academic requirements necessary for student success, thereby reinforcing our commitment to positive youth development and leadership.”
Hensley adds that new STEM centers are planned for the Clyde Austin 4-H Center in Greeneville, the Clyde York 4-H Center in Crossville, and the W.P. Ridley 4-H Center in Columbia.
David Large and daughter Alyssa are among the many farmers who have been helped by the Tennessee Agricultural Enhancement Program. The Larges farm almost 300 acres near Tazewell and maintain a cow-calf operation. The program has allowed them to add equipment like this Priefert Squeeze chute, build a hay barn, and purchase other farm necessities.
Eric Mayberry, President of the Tennessee Farm Bureau Federation (TFBF), called the investment “historic.”
“These funds will mean so much to both organizations,” said Mayberry. “They will truly play a huge role in ensuring future generations are going to learn about agriculture and be a part of our most important industry.”
Tennessee Deputy Commissioner of Agriculture Andy Holt said the investment is likely to attract more youth into ag and forestry curriculums than any other expenditure seen in decades.
“I can confidently say that no other state in our union supports youth development in agriculture more than Tennessee,” Holt said. “If you’re a young person who has an interest in agriculture as a career path, Tennessee is definitely the place to be.” Farmland preservation The budget also includes a $25 million allocation for a new Farmland Preservation Fund. This fund will support voluntary conservation efforts by landowners who wish to permanently protect their farmland from development, helping to curb the loss of prime agricultural acreage across the state. Administered by the Tennessee Department of Agriculture (TDA), the fund facilitates a grant program that enables landowners to voluntarily place permanent conservation easements on their properties. These easements are held by qualified 501(c)(3) nonprofit organizations dedicated to managing conservation efforts on farmland and forestland.
“We cannot be more grateful to Gov. Lee and the Tennessee General Assembly for passing the Farmland Conservation Act,” said Mayberry. “We’re losing 10 acres of farmland every hour, which is one of the worst records across the country. There will be a need for several actions to help solve this problem, but as an organization, TFBF believes we must begin somewhere, and this conservation easement program is a great start. We’re looking forward to seeing the benefits this program will provide to farmers across the state.” Agricultural Enterprise Fund Another beneficiary of the budget was The Agricultural Enterprise Fund (AEF), which received a $15 million infusion. The AEF is a competitive grant program aimed at stimulating economic development in agriculture, particularly in economically distressed counties. It funds value-added infrastructure, agri-business expansions, and equipment upgrades that can help producers diversify and grow.
“As a state, we obviously can’t change commodity prices, but there are things that can be done to increase market development,” Mayberry pointed out. “We’re grateful Gov. Lee understands this, and as a result, invested $15 million recurring to the Tennessee Agricultural Enterprise Fund, which invests in industries that are purchasing products our farmers grow.”
For more info about the AEF grants and download an application, visit https://www.tn.gov/agriculture/businesses/aef.html.
Agricultural student groups like 4-H, left, and FFA received the largest single-line-item investment in the agricultural category — $90.5 million — to enhance their camp infrastructure improvements, including much-needed updates to facilities like Camp Clements and Lone Oaks Farm as well as new STEM (science, technology, engineering, and math) centers. Multi-purpose classrooms and laboratories that will be used to enhance educational outreach activities will also be funded.
Tennessee Ag Enhancement Program Familiar to most farmers in the state, the Tennessee Agricultural Enhancement Program (TAEP) cost-share initiative helps producers improve animal health, forage quality, genetics, hay storage, fencing, and more. It remains one of the most utilized and appreciated programs across Tennessee’s ag sector, and this year’s budget increases TAEP funding $5 million, from $26.5 million to $31.5 million.
“TAEP is one of our banner programs with the Department of Agriculture, and it's certainly been something that a lot of producers across the state have benefited from,” said Holt. “We are excited that the Governor has continued to put faith in this program. By adding $5 million to the TAEP budget — and to do that on a recurring basis — really separates us from most other states.”
Holt noted that if other states have a producer cost-share program at all, they're usually very minimal, not funded regularly, and tend to change from one administration to the next.
“But in Tennessee, we have a program that is now decades-long in the making,” he said. “Producers have been able to look to Ag Enhancement for years as a stable partner in making their farms more profitable, and that's something that we don't take lightly.” Tennessee Meat Inspection Program Recognizing the growing demand for local and regional meat processing, the state budget also includes $1.5 million for the Tennessee Meat Inspection Program, which allows local processors to sell directly to Tennessee consumers under state-level inspection.
This expansion is critical for building resilient food systems and addressing processor bottlenecks, a challenge that became especially apparent during the COVID-19 pandemic.
Tennessee State Veterinarian Dr. Samantha Beaty, D.V.M., said the program grants the TDA exclusive authority over meat inspection and compliance for slaughterhouses, livestock carcasses, meat, and meat food products intended for intrastate commerce.
“This gives people who want to market products locally an expanded opportunity to find services for that,” Beaty said, adding that aligning state inspection standards with federal requirements ensures that meat products meet rigorous safety and labeling standards, thereby protecting consumers. “Having a local or a state meat inspection program to be able to support some of these local folks who want to expand from a custom establishment into something that's inspected, where they can sell meats directly to the consumer, I think is a positive thing.” State and regional fairs An investment aimed at bolstering Tennessee’s rural communities is a $1.5 million allocation for capital improvements at county and regional fairs — a nod to the cultural and economic importance of these time-honored events.
“Tennessee fairs are where kids show their first lambs, families gather for blue-ribbon pie and country ham competitions, and communities come together to celebrate agriculture,” said TFC’s Huff. “They deserve to be preserved and enhanced for future generations.”
According to Holt, the $1.5 million infusion will be awarded to the Tennessee Fair Association, which will then distribute the monies to fair organizations across the state.
“Here at the TDA, we believe that fairs are integral to ag education and that they are a great opportunity for all Tennesseans to engage in agricultural learning opportunities,” Holt said. “While we've certainly tried over the last couple of years to focus on the success of the Wilson County/Tennessee State Fair, we now want to make sure that we spread that opportunity outside of Wilson County. This is going to be one of the ways that we're going to be able to do that. These funds will be used for improvements for all types of fairs across the state.”
Huff added that by balancing practical on-farm investments with long-term infrastructure and educational support, Tennessee is sending a clear message: agriculture is not only a part of its past, but also a cornerstone of its future.
“I shared with Governor Lee that we will never live long enough to fully appreciate the value of this funding,” says Huff. “But we can be proud of the support these funds provide. We are grateful to all our elected officials who supported this budget and their commitment to agriculture.”
By Mark Johnson,
Contact mark@bigharvestcreative.com