NW Tennessee News

Congressman David Kustoff has introduced the Grown in America Act of 2024, known as H.R. 10494, to the House of Representatives. The bill is co-sponsored by Representatives Jim Costa, David Rouzer, Mike Carey, and Mark Alford. This bipartisan initiative aims to create a federal tax credit for businesses that purchase agricultural commodities within the United States rather than from foreign markets.

"A strong and resilient agriculture and food sector is vital to America's economy and national security," said Congressman Kustoff. He emphasized the importance of supporting American farmers to prevent them from losing out to foreign competitors. "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."

The legislation is seen as beneficial for American farmers and producers. Congressman Costa stated that it would lower costs and boost domestic manufacturing, particularly in regions like the San Joaquin Valley. "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," he said.

Congressman Rouzer highlighted the act's role in building a resilient supply chain by using American agriculture products: “American goods should be made with American products.” Congressman Alford added that Missouri's economy relies heavily on its farmers and ranchers: “Through this we will strengthen markets for our agricultural producers and promote domestic investment to secure our U.S. food supply chain.”

The Tennessee Farm Bureau and Ag Investment for America Coalition have endorsed the bill. Eric Mayberry from the Tennessee Farm Bureau expressed support: “It is vital we establish tax policy which promotes domestic agriculture.” A spokesperson from Ag Investment for America noted that this incentive would benefit the U.S. economy by increasing supply chain stability.

The act responds to geopolitical tensions with China and disruptions caused by COVID-19, which have exposed vulnerabilities in U.S. food supply chains. The proposed tax credit requires businesses to source a certain percentage of their agricultural inputs domestically—starting at 50% in year one and increasing annually until reaching 85%.