Source: United States House of Representatives – Representative David Kustoff (TN-08)
WASHINGTON, D.C. — Today, Reps. David Kustoff (R-TN), Jim Costa (D-CA), David Rouzer (R-NC), Mike Carey (R-OH), and Mark Alford (R-MO) introduced the bipartisan Grown in America Act of 2025 in the House of Representatives. 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. “By incentivizing businesses to purchase from American farmers, the Grown in America Act will bolster our agriculture industry and ensure it remains competitive on the world stage. I urge my colleagues to support this commonsense legislation that will help strengthen our supply chains, stimulate domestic investment and job creation, and reduce our 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 products should be made using American resources. The Grown in America Act not only supports our farmers and ranchers but also enables American companies to compete more effectively against lower-cost imports. By strengthening the demand for homegrown agricultural products, we enhance the resilience of our supply chains and open up new opportunities for our producers,” said Congressman Rouzer.
“Strengthening domestic supply chains is critical to maintaining our economic security, especially in the agriculture sector that feeds our country,” said Congressman Carey. “The tax incentive created in the Grown in America Act would make it more attractive for businesses to buy American and for our farmers to sell their crop to fellow Americans. I am proud to join my colleagues in this commonsense effort and encourage its passage.”
“Missouri’s farmers and ranchers are the backbone of communities across the fourth district,” said Congressman Alford. “I’m proud to co-lead the Grown in America Act, which prioritizes domestically grown and sourced agricultural products by incentivizing business to buy American. By strengthening markets for our agricultural producers, promoting domestic investment, and securing our U.S. food supply chain, this bill will provide additional support for our agriculture communities as they confront the worst financial conditions in decades. I applaud Congressman Kustoff for his leadership on this critical legislation.”
The Grown in America Act 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” 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.”
“We are grateful for the leadership of Congressmen David Kustoff and Jim Costa in their quick re-introduction of the Grown in America Act. Their bipartisan legislation, which establishes an incentive for purchasing American-grown goods, will boost our economy, stabilize our supply chains and create jobs throughout our country. Our broad coalition of American farmers and manufacturers is proud to support this legislation and support investments in the US economy,” said a spokesperson for Ag. Investment for America.
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 2025 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.
- 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 for the full text of the bill.
###