Sen. Barnes files bill in North Carolina Senate to protect farmers from banking discrimination

A new bill filed by State Sen. Lisa S. Barnes in the North Carolina Senate seeks to protect agriculture producers from banking discrimination based on environmental policies and practices, according to the North Carolina State Senate.

The bill, filed as SB 554 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Farmers Protection Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, titled the Farmers Protection Act, aims to prevent banks from discriminating against agriculture producers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizers, or fossil-fuel powered machinery. It establishes that if a bank has made an environmental, social, or governance (ESG) commitment related to agriculture, there is a rebuttable presumption against denying or restricting services to agriculture producers unless the bank can demonstrate the decision was based solely on financial considerations. Banks must annually report their compliance with this regulation. Violations may result in civil actions, penalties of up to $10,000, and classification as an unfair or deceptive trade practice. The provisions also extend to state associations, savings banks, and credit unions. The act takes effect immediately upon becoming law and applies to actions committed from that date forward.

A related bill, HB 62, was also filed in the North Carolina House, introduced by Rep. Neal Jackson (and three others) on Feb. 5, 2025.

Of the two sponsors of this bill, Buck Newton proposed the most bills (25) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Barnes graduated from Peace College with an AA and again in 1988 from North Carolina State University with a BA.

Barnes, a Republican, was elected to the North Carolina State Senate in 2021 to represent the state’s 11th Senate district, replacing previous state senator Rick Horner.