Tennessee agriculture faces ‘‘commodity chaos’’; commissioner outlines losses, export push and infrastructure needs

Tennessee Agriculture Commissioner Andy Holt told the Senate Energy, Agriculture & Natural Resources Committee on the floor of the state capitol that row‑crop producers faced “commodity chaos” last year and outlined a package of state and federal responses aimed at stabilizing farms and growing export markets.

Holt said agriculture and forestry together generated $103,800,000,000 in economic activity in 2025 and stressed the sector’s statewide importance as he explained recent market and weather shocks. "This is a very important topic," Holt told the committee, adding that drought and sharply higher input costs left many producers with negative margins.

Why it matters: Holt presented detailed loss estimates for principal crops and said cumulative losses for corn, soybeans, wheat and cotton in 2025 were estimated at $192,000,000 after crop‑insurance and other federal supports (an earlier gross estimate was $476,000,000). He argued the scale of those losses means there is no single state or federal cure and described a set of practical interventions the department is pursuing.

What was proposed: Holt highlighted a mix of near‑term and longer‑term responses: strengthening partnerships and outreach through a Tennessee Roots tour to gather producer input; coordinating business development with the Department of Economic and Community Development; a farm‑profitability working group with Tennessee Farm Bureau, Farm Credit and the University of Tennessee Extension; and increased pursuit of federal funding streams, including the recently announced Food for Peace program, disaster block grants and crop insurance subsidies.

He urged investment in value‑added processing to capture more farm income in state, citing oil‑crushing capacity for oilseeds, large‑scale beef processing, and markets for low‑value fiber and residue as priorities. On export strategy, Holt set a departmental goal to move Tennessee from No. 22 into the top 10 states for agricultural exports within five years; he noted Tennessee exported $2,770,000,000 in agricultural and forestry goods in 2024.

Infrastructure focus: Both Holt and Stefan Maupin of the Tennessee Soilbean Promotion Council emphasized ‘‘last‑mile’’ logistics. Holt called the Bungee Road project in Dyer County a pressing need to move grain to Mississippi River barges, saying the road is periodically inundated and raising it above the floodplain would enable reliable barge access to international markets. Maupin added that roughly three access roads serve Mississippi River loading points and argued short industrial roads and improved short‑line rail can materially boost export capacity.

State programs and money: Holt reported recent increases in state cost‑share and support programs: recurring funding for the Tennessee Ag Enhancement Program rose from $26.5 million to $31.5 million; the Ag Enterprise Fund is funded at $15,000,000 on a recurring basis and supports 25% cost‑share up to $500,000; Agtrack provides 25% cost‑share up to $1,000,000 for diversification projects.

Members’ questions and priorities: Senators and committee members pressed on rail and river access, comparisons with California's specialty‑crop economy, and the environmental tradeoffs of new processing capacity. Senator Campbell urged more use of rail and consideration of long‑term environmental stewardship. Commerce Chairman Bailey and Vice Chair Lowe urged interagency coordination (ECD, TDOT, finance) to fund access roads and preserve farmland.

The next steps: Holt said the department will continue outreach and pursue federal funds while working with local and state partners on targeted infrastructure and value‑added projects. The committee’s joint session with Commerce concluded and the Senate committee returned to regular session to take votes on the consent calendar and a river‑designation bill.

Quotes from the hearing: "There is no single solution... There is no government, whether state or federal that can cure the economic loss that has occurred over the last couple of years," Commissioner Andy Holt said, urging a multifaceted approach. "Agriculture and forestry when combined account for $103,800,000,000 worth of economic activity in the year 2025," Holt told the committee. "72.3% of the beans produced in Tennessee are exported," Stefan Maupin said, arguing infrastructure to access river loading points is critical.

Ending: The presentation closed after roughly an hour of briefing and questions. Committee members thanked the presenters and the meeting returned to regular session for votes on the consent calendar and legislation.