WASHINGTON, D.C. — Congressman David Kustoff (R-TN) recently introduced H.R. 10494, the Grown in America Act of 2024, in the House of Representatives with original cosponsors Reps. Jim Costa (D-CA), David Rouzer (R-NC), Mike Carey (R-OH), and Mark Alford (R-MO). This bipartisan legislation will create a federal tax credit to help businesses shift away from foreign markets and purchase more agricultural commodities here in the U.S.
"A strong and resilient agriculture and food sector is vital to America’s economy and national security," said Congressman Kustoff. "It is imperative we support our famers here at home and ensure they are not losing out to foreign competitors. That is why I introduced the Grown in America Act of 2024. 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."
"Our legislation is a win for American farmers, producers, dairymen, and women, especially those in the San Joaquin Valley, by lowering costs and boosting domestic manufacturing,” said Congressman Costa. “By offering tax credits for manufacturers who purchase U.S.-grown agricultural products, it strengthens supply chains and supports farmers who are price takers, not price makers. This vital step ensures American agriculture remains competitive, helping both farmers and manufacturers thrive in the global economy."
“American goods should be made with American products. The Grown in America Act supports our farmers and ranchers while helping America First companies continue to compete against cheaper imported products. Bolstering the use of American agriculture products builds a more resilient supply chain for our manufacturing base while providing new and expanded markets for our producers," said Congressman Rouzer.
“Missouri’s farmers and ranchers are the backbone of our economy and our communities. The Grown in America Act prioritizes domestically grown and sourced agricultural products by incentivizing business to buy American. Through this we will strengthen markets for our agricultural producers and promote domestic investment to secure our U.S. food supply chain. I’m proud to support this legislation along with my other colleagues and look forward to getting it across the finish line,” said Congressman Alford.
The Grown in America Act of 2024 was endorsed by the Tennessee Farm Bureau and the Ag Investment for America Coalition.
“Tennessee Farm Bureau is proud to endorse the Grown in America Act of 2024,” said Tennessee Farm Bureau Federation President Eric Mayberry. “It is vital we establish tax policy which promotes domestic agriculture and the farm processing industry. Food security is national security, and Americans desire local food. This act will help secure these objectives.”
“Our broad coalition of American manufacturers and growers supports the Grown in America Act, a bipartisan proposal to encourage U.S. manufacturers to source more agricultural products from U.S. farmers,” said a spokesperson for Ag Investment for America. “This new incentive for purchasing American-grown crops would benefit the U.S. economy, increase supply chain stability, and encourage domestic job growth. Now is the time to incentivize domestic investment and support American farmers and manufacturers.”
Background:
Current geopolitical tensions with China, along with supply chain disruptions caused by the COVID-19 pandemic, have highlighted the vulnerability of U.S. food supply chains and the agricultural sector’s exposure to foreign markets. Maintaining America’s status as the global economic powerhouse depends in part on our ability to protect critical domestic industries and fortify our supply chains.
The Grown in America Act of 2024 will incentivize businesses to purchase agricultural commodities from U.S. farmers, instead of importing them from overseas. Specifically, this legislation creates a tax credit to qualifying businesses for purchasing agricultural commodities sourced from American growers:
- Qualifying businesses include those using agricultural inputs to create products intended for human consumption.
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Businesses must source a certain percentage of their agricultural products from domestic growers to be eligible for the credit.
- The eligibility threshold (the percentage of agriculture products a business must source domestically) begins at 50% in year one and increases by 5% annually over an eight-year period until it reaches 85%.
- The eligibility threshold(s) are based on a three-year rolling average to address potential, unavoidable market disruptions.
- The credit is calculated as 25 percent multiplied by the ratio of US to non-US agriculture purchases.
Click here to read the full text of the bill.
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This is a companion discussion topic for the original entry at https://kustoff.house.gov/media/press-releases/congressman-kustoff-introduces-grown-america-act-2024