Commissioner of Agriculture Charlie Hatcher told the Senate Energy, Natural Resources and Agriculture Committee on Oct. 12 that his agency's proposed FY25-26 budget includes $15 million in recurring cost increases for the Ag Enterprise Fund and a $25 million nonrecurring appropriation for a Farmland Conservation Fund.

The budget presentation, delivered to the committee in an out-of-session agency briefing, also listed a recurring $5 million proposal for the Tennessee Agricultural Enhancement Program, a $1,866,300 request tied to a state meat inspection program and nonrecurring capital requests of $46,250,000 each for 4-H and FFA facilities.

Why it matters: Hatcher said the Ag Enterprise Fund is among the department's highest-return tools and that the conservation fund would pay for voluntary permanent conservation easements intended to slow loss of family farms. Committee members flagged farm finances, trade risks and workforce concerns as urgent items for the next budget cycle.

Hatcher framed the meat-inspection request as a branding and market-access tool for small processors and producers. Budget director Samantha Wilson told the committee the department plans a funding swap to reduce fees that were included in earlier legislation and instead cover the program with state appropriation. "We didn't find that advantageous to Tennesseans to have them pay for a state inspection when the federal inspection is free," Wilson said.

Committee questioning focused on trade policy, staffing and farmland priorities. Senator Campbell asked about the department's preparations for new tariffs; Hatcher said federal and regional conversations are underway through the National Association of State Departments of Agriculture and the Southern Association of State Departments of Agriculture but that federal policy remains under development. Senator Potey asked about long-term vacancies; Samantha Wilson responded the department has seven positions vacant more than a year, listing business development and forestry roles and saying hemp positions were filled but meat-inspection positions were not established because the revenue to support them had not been secured.

On farmland conservation, Hatcher said he envisions a voluntary, auction-style application system modeled on Pennsylvania's program, where landowners bid a per-acre price for permanent easements. "I would envision something like that so that you would, you would try to conserve as many acres as you could," he said.

State Veterinarian Samantha Beatty also addressed a committee question about avian influenza. Beatty said Tennessee recently ended the quarantine on its last commercially affected premises and is awaiting establishment of disease freedom to resume normal trade; she noted Tennessee has relatively few table-egg layer operations and that much of the national egg shortage reflects depopulation in other states.

The committee voted unanimously to move the Department of Agriculture budget to the Finance Committee. The motion passed 9-0.

What's next: The budget will be considered next by the Finance Committee; Hatcher and his staff said they are available to provide details on contracts and program rollouts if the funding is approved.

Ending detail: During the presentation Hatcher highlighted a recurring theme from the department's SWOT analysis: Tennessee is losing roughly 10 acres of farmland per hour and the aging of farm operators poses a risk to continued production and land stewardship.