Analysis from Texas A&M agricultural economists shows $2.36 billion economic boost and 7,000 jobs created annually from the proposed legislation

The American Farm Bureau Federation recently endorsed the legislation and asked the President to support it

WASHINGTON, D.C. — New economic impact data released today shows that incentivizing businesses to purchase U.S.-grown agricultural commodities could significantly boost economic output, strengthen domestic manufacturing, and improve supply-chain resilience across the country.

The new analysis from Dr. Bart Fischer and Dr. Joe Outlaw, agricultural economists from Texas A&M University Agricultural and Food Policy Center, illustrates how the Grown in America Act (H.R. 1707) would lead to growth in agricultural production, food manufacturing investment, and job creation, including $2.36 billion in new economic output and nearly 7,000 new jobs annually. The bipartisan legislation led by U.S. Representatives David Kustoff (R-TN) and Jim Costa (D-CA) has gained significant bipartisan support in the House, with 30 cosponsors.

The newly released analysis demonstrates how a proposed federal tax credit would encourage manufacturers to buy U.S.-grown agricultural commodities, increasing demand for American farm products while reducing reliance on foreign supply chains. The findings outline both state and national economic gains tied to increased domestic sourcing.

“I introduced the Grown in America Act to support our farmers and strengthen our supply chains,” said Rep. Kustoff. “This new data highlights why passing this legislation is so important. Sourcing more from American producers generates more jobs and investment, laying the groundwork for an even stronger economy.”

“The analysis released today shows the real-world impact of investing in American agriculture,” said Rep. Costa. “In the San Joaquin Valley, our farmers help feed communities across the country and around the world, and they need strong, reliable markets here at home. By incentivizing domestic sourcing, the Grown in America Act strengthens our food security and supports rural economies while helping ensure our farmers and manufacturers can compete in a more uncertain global market.”

Economic findings were presented at a bipartisan Capitol Hill briefing by Dr. Fischer, who detailed how increased domestic purchasing could create a positive economic impact across farming, processing, and manufacturing communities nationwide. The event was hosted by Ag Investment for America, a multi-industry coalition representing farmers, producers, manufacturers, and food and beverage companies.

The Grown in America Act is supported by a broad coalition of agriculture and food system stakeholders, including the American Farm Bureau Federation, USA Rice, the National Association of Manufacturers, FMI – the Food Industry Association, and other commodity and manufacturing groups.

“Farmers depend on strong, reliable domestic markets,” said Brian Glenn, Director of Government Affairs for the American Farm Bureau Federation. “The Grown in America Act uses targeted, market-based incentives to grow demand for U.S.-produced commodities, strengthening the agricultural supply chains our country relies on every day. This is why we have directly appealed to President Trump and Congress to include the Grown in America Act in any comprehensive legislative package being considered this year.”

“The U.S. rice industry provides more than two-thirds of the rice consumed domestically. Further strengthening our American customer base will help stabilize demand, providing U.S. rice farmers, merchants, and processors with more stability and encourage greater investment in American food manufacturing,” said Peter Bachmann, President and CEO of USA Rice. “We are grateful for the work of Representatives Kustoff and Costa, and we are confident that their legislation, the Grown in America Act, will significantly benefit both American farmers and consumers.”

“From American fields across the country to the final products that make it to your plate, our membership represents each piece of the supply chain. Boosting demand for homegrown commodities is essential in reducing reliance on imported goods and makes the United States more competitive in the global economy,” said a spokesperson for the National Council of Farmer Cooperatives. “We are thankful for Representatives Kustoff and Costa’s commitment to our American producers and manufacturers by sponsoring the Grown in America Act.”

“A strong domestic food supply chain is critical to farmers, manufacturers, retailers, and consumers,” said a spokesperson for FMI – The Food Industry Association. “We applaud bipartisan efforts to pass the Grown in America Act to strengthen our economy and boost demand for American products.”

“Manufacturers across the food and beverage supply chain comprise the largest sector of manufacturing in the United States—and they are continually investing in innovation, jobs, and communities,” said Jake Kuhns, Vice President of Domestic Policy at the National Association of Manufacturers. “Legislation like the Grown in America Act is essential to the manufacturing industry’s long-term economic growth and global competitiveness.”

About the Grown in America Act
Introduced in February 2025, the Grown in America Act proposes a federal agricultural tax credit that incentivizes businesses to purchase U.S.-grown agricultural commodities through a federal tax credit. By strengthening domestic supply chains and reducing reliance on foreign markets, the legislation supports American farmers, creates jobs, and enhances U.S. food security.

About Ag Investment for America

Ag Investment for America is a multi-industry coalition uniting U.S. growers, producers, and manufacturers to strengthen America’s agricultural and manufacturing base. The coalition is urging policymakers to enact pro-growth tax policies—specifically, a tax credit that incentivizes American manufacturers to source American-grown agricultural goods. This commonsense approach would boost demand for American-made products, support U.S. farmers and ranchers, create new manufacturing jobs, and reinforce supply chain resilience across key U.S. industries.

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