HB 1895 — An Act amending Title 3 (Agriculture) of the Pennsylvania Consolidated Statutes, establishing the Agriculture Innovation Grant Program and the Agriculture Innovation Board; and making a repeal.

PRINTER'S NO.   2366

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1895
                                                 Session of
                                                   2025

     INTRODUCED BY MUSTELLO, GAYDOS AND STENDER, SEPTEMBER 29, 2025

     REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
        SEPTEMBER 30, 2025


                                      AN ACT
 1   Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
 2      Statutes, establishing the Agriculture Innovation Grant
 3      Program and the Agriculture Innovation Board; and making a
 4      repeal.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Title 3 of the Pennsylvania Consolidated Statutes
 8   is amended by adding a chapter to read:
 9                                 CHAPTER 110
10                     AGRICULTURE INNOVATION GRANT PROGRAM
11   Sec.
12   11001.   Scope of chapter.
13   11002.   Purpose.
14   11003.   Definitions.
15   11004.   Agriculture Innovation Grant Program.
16   11005.   Board.
17   11006.   Grant funds and eligibility.
18   11007.   Funding.
19   11008.   Limitation of grants.
 1   11009.   Applications and disposition of grants.
 2   11010.   Regulations.
 3   § 11001.    Scope of chapter.
 4      This chapter relates to the Agriculture Innovation Grant
 5   Program.
 6   § 11002.    Purpose.
 7      It is the intent of the General Assembly to offer
 8   reimbursement grants to promote and support agricultural
 9   innovation to ensure the competitiveness, resiliency,
10   environmental stewardship and vitality of farms, agribusinesses
11   and agricultural support services in this Commonwealth.
12   § 11003.    Definitions.
13      The following words and phrases when used in this chapter
14   shall have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Agricultural commodity."     As defined in section 2 of the act
17   of June 10, 1982 (P.L.454, No.133), referred to as the Right-to-
18   Farm Law.
19      "Board."    The Agriculture Innovation Board established under
20   section 11005 (relating to board).
21      "Conservation district."     As defined in section 503 (relating
22   to definitions).
23      "Cooperative association."     As defined in section 4502
24   (relating to definitions).
25      "Eligible applicant."     An applicant that meets one of the
26   following criteria:
27            (1)   A person who grows an agricultural commodity and who
28      has anticipated sales greater than $2,000 a year.
29            (2)   A person who processes an agricultural commodity and
30      has anticipated sales greater than $10,000 a year.

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 1          (3)     A person who provides technical assistance or
 2      services to farmers for conservation, engineering, veterinary
 3      care, animal disease management, farm management,
 4      agricultural commodity production, nutrient management or
 5      similar services.
 6          (4)     A person or cooperative association that utilizes
 7      agricultural commodities to create products or energy.
 8      "Innovation."    The practical implementation of ideas that
 9   results in new products, processes or services.
10      "Lending institution."    As defined under section 603
11   (relating to definitions).
12      "Licensed doctor of veterinary medicine."    A person who is
13   currently licensed under the act of December 27, 1974 (P.L.995,
14   No.326), known as the Veterinary Medicine Practice Act.
15      "Person."    An individual, partnership, association, firm,
16   corporation or any other legal entity.
17      "Program."    The Agriculture Innovation Grant Program
18   established under section 11004 (relating to Agriculture
19   Innovation Grant Program).
20   § 11004.   Agriculture Innovation Grant Program.
21      The Agriculture Innovation Grant Program is established
22   within the department. The program shall be administered by the
23   department, in consultation with the board, to provide
24   reimbursement grants to eligible applicants for costs associated
25   with one or more of the following:
26          (1)     Utilization of innovation to improve energy
27      efficiency, improve water quality, reduce water consumption,
28      reduce odors or address solid waste concerns.
29          (2)     Utilization of innovation to improve production,
30      processing, commercialization or utilization of agricultural

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 1      commodities.
 2            (3)   Innovation that produces energy from agricultural
 3      sources, including manure, food waste or biomass.
 4            (4)   Innovation equipment that provides low-carbon or no-
 5      carbon energy sources from agricultural commodities.
 6            (5)   Innovation technology that assists eligible
 7      applicants with the management of their farms, including
 8      diagnostic tools and services.
 9            (6)   Innovation technology that assists a packer,
10      processor or cooperative in more efficient sorting, grading
11      or processing of agricultural commodities.
12            (7)   Innovation that improves biosecurity or health of
13      plants or animals.
14            (8)   Innovation that supports cybersecurity or data
15      analytics.
16   § 11005.    Board.
17      (a)     Establishment.--The Agriculture Innovation Board is
18   established and shall consist of the following members:
19            (1)   The secretary or a designee who shall serve as
20      chairperson.
21            (2)   The Secretary of Community and Economic Development
22      or a designee.
23            (3)   An employee of a conservation district selected by
24      the executive director of the State Conservation Commission.
25            (4)   The following members appointed by the Governor:
26                  (i)    A representative of an institution of higher
27            education located in this Commonwealth.
28                  (ii)    A board member of a rural electric cooperative
29            located in this Commonwealth.
30                  (iii)    A member of a cooperative association located

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 1            in this Commonwealth.
 2                  (iv)   An employee of a lending institution located in
 3            this Commonwealth.
 4                  (v)    A person or an employee of a person engaged in
 5            the production or processing of an agricultural commodity
 6            in this Commonwealth.
 7                  (vi)   A licensed doctor of veterinary medicine who is
 8            not an employee of the Commonwealth.
 9            (5)   One member of the Senate appointed by the President
10      pro tempore of the Senate or a designee who shall be an
11      employee of the Senate.
12            (6)   One member of the Senate appointed by the Minority
13      Leader of the Senate or a designee who shall be an employee
14      of the Senate.
15            (7)   One member of the House of Representatives appointed
16      by the Speaker of the House of Representatives or a designee
17      who shall be an employee of the House of Representatives.
18            (8)   One member of the House of Representatives appointed
19      by the Minority Leader of the House of Representatives or a
20      designee who shall be an employee of the House of
21      Representatives.
22      (b)   Quorum.--Seven members of the board shall constitute a
23   quorum. The consent of no less than seven members of the board,
24   with five of the consenting members as specified under
25   subsection (a)(1), (5), (6), (7) and (8), shall be necessary to
26   award grants to eligible applicants under subsection (d).
27      (c)   Terms.--A board member appointed under subsection (a)
28   (3), (4), (5), (6), (7) and (8) shall serve a term of two years
29   and may be reappointed to successive terms. A vacancy shall be
30   filled in the same manner as appointments are made under

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 1   subsection (a).
 2      (d)     Duties.--The board shall meet as necessary to evaluate
 3   and award grants under section 11006 (relating to grant funds
 4   and eligibility) to eligible applicants based on the following
 5   criteria:
 6            (1)   The ability of the applicant to complete the
 7      project.
 8            (2)   The ability of the applicant to incorporate one or
 9      more of the innovations under section 11004 (relating to
10      Agriculture Innovation Grant Program).
11            (3)   How the project fulfills one or more of the
12      innovations under section 11004.
13            (4)   The ability of the applicant to sustain the project.
14            (5)   Any other criteria as determined by the department,
15      in consultation with the board.
16   § 11006.    Grant funds and eligibility.
17      (a)     Innovation planning project grant.--An eligible
18   applicant may apply for a grant to develop a strategic plan to
19   utilize innovation to improve agricultural practices,
20   technologies, operations or approaches within a specific
21   business, geographic area or network. The following shall apply
22   to a grant under this subsection:
23            (1)   The amount of a grant shall be no less than $7,500
24      and no more than $50,000.
25            (2)   A grantee must use non-State sourced matching funds
26      equal to at least 30% of the grant amount for the project.
27      (b)     On-site project grant.--An eligible applicant may apply
28   for a grant for a project that focuses on implementing
29   innovation practices, technologies or approaches on an
30   individual farm or property producing or processing an

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 1   agricultural commodity. The following shall apply to a grant
 2   under this subsection:
 3            (1)   The amount of the grant shall be no less than $5,000
 4      and no more than $200,000.
 5            (2)   A grantee must use non-State sourced matching funds
 6      equal to at least 50% of the grant amount for the project.
 7      (c)     Regional impact project grant.--An eligible applicant
 8   may apply for a grant for a project designed to address
 9   challenges, promote efficiencies or achieve specific goals for
10   multiple eligible applicants. The following shall apply to a
11   grant under this subsection:
12            (1)   The amount of the grant shall be no less than
13      $100,000 and no more than $2,000,000.
14            (2)   The grantee must use non-State sourced matching
15      funds equal to at least 50% of the grant amount for the
16      project.
17            (3)   The project must impact two or more persons or
18      businesses or be a cooperative association that grows,
19      harvests, processes, packs or manages an agricultural
20      commodity.
21   § 11007.    Funding.
22      The department shall accept money from the following sources:
23            (1)   Money appropriated to the department for the
24      purposes of this chapter.
25            (2)   Gifts or donations of money, securities or other
26      personal property except real estate, which, or the income of
27      which, shall be used to carry out the purposes of this
28      chapter.
29   § 11008.    Limitation of grants.
30      (a)     Limitation.--A grant under section 11006 (relating to

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 1   grant funds and eligibility) may only be awarded to the extent
 2   money is appropriated by the General Assembly or provided by
 3   other sources.
 4      (b)     Approval of grant.--The board may approve a grant that
 5   is less than the requested amount.
 6      (c)     Conditions.--The department and the board may impose
 7   restrictions or special conditions upon issuance of a grant.
 8      (d)     Reimbursement grants.--
 9            (1)   A grant awarded under section 11006 shall be a
10      reimbursement grant. The amount of reimbursement shall be
11      based on actual costs submitted by an approved eligible
12      applicant for a project awarded a grant during any fiscal
13      year in which grants are offered.
14            (2)   Grant money shall not be used to reimburse any
15      portion of an in-kind contribution to an eligible project.
16            (3)   Grant money may not be used to pay or reimburse
17      wages or salaries of a grant recipient or grant recipient
18      staff.
19            (4)   Grant money may not be used to reimburse any portion
20      of project costs that are paid or reimbursed under another
21      Federal or State grant program.
22      (e)     Cap on grants.--A single eligible applicant may not be
23   awarded more than $2,000,000 in a fiscal year.
24   § 11009.    Applications and disposition of grants.
25      (a)     Submission.--Applications for grants shall be submitted
26   in a manner and on a form as prescribed by the department.
27      (b)     Written agreement.--The department may require a written
28   agreement describing the terms and conditions of the grant.
29      (c)     Verification.--The department may require verification
30   of grant expenditures.

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 1      (d)     Criteria.--The department may establish criteria under
 2   which the department may demand the return of all or a portion
 3   of the grant money.
 4   § 11010.    Regulations.
 5      The department shall administer the provisions of this
 6   chapter and, with the approval of the board, shall prescribe and
 7   adopt program policy guidelines or regulations to administer and
 8   enforce this chapter.
 9      Section 2.    Repeals are as follows:
10            (1)   The General Assembly declares that the repeal under
11      paragraph (2) is necessary to effectuate the addition of 3
12      Pa.C.S. Ch. 110.
13            (2)   Article XVI-Z of the act of April 9, 1929 (P.L.343,
14      No.176), known as The Fiscal Code, is repealed.
15      Section 3.    This act shall take effect in 60 days.




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