Stein signs sweeping North Carolina agriculture bill into law

North Carolina Gov. Josh Stein on Monday signed a sweeping agriculture bill that had been held up in the General Assembly for months over proposals that would have banned raw milk and protected fertilizer companies. 

Stein signed Senate Bill 401 — also known as the “Farm Act of 2025-2026” — which addresses economic, environmental and health-related topics in the state’s agriculture industry. The General Assembly passed the bill with near-unanimous support earlier this month after lawmakers removed parts of the legislation that had drawn outcry from Republicans and Democrats.

The law calls on the state government to:

• Study ways to protect water for agricultural use, a growing issue with North Carolina’s urban areas booming and needing more water, particularly amid a statewide drought.
• Repeal a points system used to punish hog farmers who violate environmental or health rules, which Dixon said was put into law years ago but never actually used.
• Allow public school students an extra two days of excused absences to attend livestock shows, equestrian competitions or other agricultural-themed events.
• Lower the penalties for illegal shrimping, which comes after a separate effort to crack down on shrimping failed in the face of passionate opposition.
• Increase the penalties for stealing crops.
• Create legal carveouts for property used for composting, or that specialize in turning animal waste into agricultural products.

Removed from the bill: a proposal to ban raw milk and a provision that would’ve made it much harder for cancer patients to sue pesticide companies for causing their health issues. The latter proposal was requested by big-business interests after biotech giant Bayer agreed to pay billions to settle lawsuits over cancer cases linked to its popular weedkiller Roundup.

Bayer bought Roundup maker Monsanto in 2018 and in 2020 paid approximately $11 billion to settle Roundup lawsuits from more than 100,000 people; earlier this year Bayer agreed to pay another $7.25 billion to settle 65,000 more Roundup lawsuits.

Lawmakers also took out a provision that would’ve expanded powers for city or county governments to block new construction they feel might harm local agricultural production.

Stein on Monday thanked lawmakers for working together on the legislation.

“Agriculture is a key driver of North Carolina’s economy, and I appreciate the General Assembly’s collaboration on this law. I am grateful that it strengthens the preservation of North Carolina’s natural and agricultural lands by extending conservation tax credits until 2031,” Stein said in a statement. 

Developer incentives 

Stein also signed Senate Bill 695, which would allow local governments to create special incentive districts for developers. Developers could get tax benefits if they build in the incentive areas. Supporters say it would benefit all municipalities and counties, but it would especially benefit impoverished or blighted areas. 

“As housing costs continue to rise, this law encourages partnership between local governments and developers to increase housing availability and affordability for North Carolinians,” Stein said in a statement. 

The bill provides a framework that allows developers to front the money for the cost of needed infrastructure and improvements, instead of the cities and counties having to take it out of their general funds, supporters explained during floor debates. Developers would recoup the cash by 90% abatement for up to a 10 year period. At the end of the 10 years, the community would begin collecting taxes based on 100% of the assessed property value.

“During that period, the community gains the housing it needs and still receives a small increase in tax base,” Rep. Neal Jackson said earlier this month as the House voted on the measure. 

Other bills

Stein also signed the following bills: 

• House Bill 258, which amends laws governing retaliatory employment discrimination by specifying how complaints should be filed and what information they should contain.
• House Bill 315, which prohibits litigation investments in the civil justice system and increases certain workers' compensation benefits. 
• House Bill 536, which makes changes to laws regulating the practice of physical therapy. 
• House Bill 484, which clarifies the appropriate use of proceeds of room occupancy taxes.