Omnibus ag bill passes state Legislature

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Update: On Thursday, Gov. Tim Walz signed the agriculture bill into law.

This past weekend, as they faced a Sunday night adjournment deadline, Minnesota lawmakers passed a supplemental agriculture budget bill that includes funding for drought relief and broadband. 

The bill was one of only a few to advance in the final days of the 2022 state legislative session. Earlier in the week, top legislative leaders had agreed to a global budget framework that would include $4 billion in new spending and a $4 billion tax bill. But they were unable to reach agreements on most of the specifics before the constitutional adjournment deadline 

Lawmakers had passed a two-year state budget in 2021, so they weren’t under pressure during the 2022 legislative session to approve new spending bills. But given the state’s historic budget surplus, there was a possibility for additional action. 

Here is a brief rundown of the agriculture bill and how it could affect farmers. 

MDA funding provisions 

The bill would add $7.5 million in general funds to the Department of Agriculture’s budget during the current biennium (2022-23) and an additional $7.5 million to the base budget in the next biennium (2024-25). Among the highlights, the bill would: 

• Create a soil-health financial-assistance program and dedicate $500,000 to it in 2023. The Minnesota Corn Growers Association (MCGA) worked with other ag partners to develop the language for the program that was ultimately used in the bill and is pleased to see funding for the program included in the final agreement. 
• Transfer $1.5 million in general funds to the Agricultural Emergency Account, which supports emergency response and preparedness activities for animal disease outbreaks and other food emergencies. 
• Provide $500,000 for the Veterinary Diagnostic Lab at the University of Minnesota.
• Increase funding for Agricultural Growth, Research, and Innovation (AGRI) bioincentive payments by $1.25 million in 2023 and $2.5 million in 2024-25. 
• Provide a $750,000 grant to the Ag Innovation Campus at the University in Crookston. 
• Increase funding to the Agricultural Utilization Research Institute by $700,000. 
• Increase funding for ag and rural mental health by $22,000 in 2023 and $44,000 in 2024-25. 
• Increase funding for meat-processing grants by $650,000 in 2023 and $500,000 in 2024-25.
• Provide $827,000 in 2023 to organizations to provide technical and culturally appropriate services to emerging farmers and related businesses. 
• Provide $750,000 in 2023 for IT modernization and $584,000 for such efforts in 2024. 
• Provide $141,000 in 2023 for additional funding to administer the beginning farmer tax credit; the bill would provide $112,000 for these efforts in 2024-25. 
• Provide $50,000 in 2024 for technical assistance and leadership in the development of a comprehensive state aquaculture plan. 
• Provide $500,000 in 2023 and $1.5 million in 2024-25 for down payment assistance grants.
• Provide $350,000 in 2023 for secondary career and technical education programs that offer instruction in meat cutting and butchery. 

In terms of drought relief, the bill would: 

• Appropriate $8.1 million for grants and financial assistance to livestock farmers and specialty crop producers affected by the drought last year. Payments can be up to $7,500. 
• Transfer $2.5 million in 2022 to the Rural Finance Authority Revolving Loan Account. 
• Allocate $1 million in 2022 to the Veterinary Diagnostic Laboratory to buy equipment to test for chronic wasting disease, African swine fever, avian influenza and other animal diseases.
• Transfer $1.5 million in 2022 to the Agricultural Emergency Account. 

The bill would also distribute $300,000 to the Department of Natural Resources for costs associated with resolving well interferences and $5 million in 2023 to replace drought-killed seedlings.

[More: Read more policy-related news on the Minnesota Corn blog]

Broadband 

When it comes to broadband, the bill would distribute $25 million to broadband expansion in 2023 and another $25 million to the effort in 2024. The bill also gave the state’s Office of Broadband direction on how to spend over $200 million that the state has received from the federal government via the American Rescue Plan Act and the Infrastructure, Investments and Jobs Act. 

Ag policy 

The bill would not ban plastic-coated pesticides and fertilizer, nor would it direct the Department of Agriculture to set up treated-seed disposal guidelines, as proposed in the House agriculture bill MCGA stated our opposition to these provisions during the conference committee process. The Minnesota Pollution Control Agency has already developed this guidance. 

Other changes include: 

• Increasing the minimum Agricultural Chemical Response and Reimbursement Account (ACRRA) balance from $1 million to $2 million, with a total balance not to exceed $6.5 million. 
• Increasing the eligible ACRRA reimbursement cap from $350,000 to $650,000. 
• Convening a Grain Advisory Group to develop recommendations to improve the state’s grain licensing program.
• Reauthorizing cooperative development grants of up to $50,000 for business development. 
• Changes to the ag best management practices loan program 
• Ending a cap on livestock investment grants and giving preference to those who have not yet received a grant. 
• Establishing a farm down-payment assistance program. 
• Adding a cybersecurity expert to the Food Safety and Defense Task Force.
• Allowing the Board of Animal Health to receive federal dollars for ag emergency response. 
• Allowing small-scale solar on land within an agricultural preserve. 
• Changes to the bioincentive program.  
• Changes to allow new accreditation for certain zoos.