What passed during the 2023 legislative session

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The 2023 Minnesota legislative session ended Monday night. With full control of the Legislature and the governor’s mansion, the Democratic-Farmer-Labor (DFL) party passed a flurry of bills encompassing all areas of state government.

The top priority for Gov. Walz and the Legislature this year was the passage of a two-year state budget. While crafting the budget, the governor and the Legislature had a projected $17.5 billion surplus.

The Minnesota Corn Growers Association (MCGA) was hard at work this session establishing connections with the new DFL majority, in addition to legislative leadership and other key committee members. MCGA also worked on proactive funding programs at the Minnesota Department of Agriculture that would help support corn farmers.

Here is a look at provisions that passed during the session that affect corn farmers and rural communities.

Biofuels

A key priority for MCGA during the 2023 legislative session was expanding access to homegrown biofuels, such as Unleaded 88/E15 and E85/flex fuels. These blends reduce greenhouse gas emissions, improve air quality, support family farmers and rural communities, and save consumers money at the pump. Additionally, the production of biofuels results in high-value coproducts such as corn oil and high-protein dried distillers grain animal feed.

MCGA was pleased that lawmakers approved $6.75 million for biofuel infrastructure in 2024-25. The funds will help dozens of fuel retailers upgrade to equipment compatible with higher biofuel blends, thereby increasing access to these higher-octane, lower-carbon fuels.

This is the second straight biennium for which lawmakers have approved biofuel infrastructure funding. In 2021, lawmakers allocated $6 million for biofuel infrastructure as part of the 2022-23 state budget. The Minnesota Corn Research & Promotion Council, MCGA’s partner organization, contributed an additional $1 million to the grant program, which is helping 44 fuel stations upgrade to equipment compatible with higher biofuel blends.

MCGA is also pleased by a provision in the omnibus commerce finance and policy bill that requires fuel stations that sell E15 and mid-level ethanol blends to report the amount of each blend sold. Minnesota has made tremendous strides in sales of these blends in recent years, and this bill will help show just how much growth there has been in the state.

Soil health

Another priority for MCGA this session were several bills related to soil health and sustainability. MCGA was also concerned about several proposals that could have limited farmers’ access to critical crop protection tools.

Fortunately, lawmakers passed several soil health initiatives while not advancing the most harmful proposals related to crop-protection tools. Approved soil health programs included:

• $1.25 million for soil health grants. Grants must be used to implement practices such as reduced tillage, cover cropping, manure management, precision agriculture, crop rotation, changes in grazing/livestock management, integration of perennial vegetation, changes in soil management, and the development of site-specific management plans. Grants can be used to purchase equipment, technology, subscriptions, technical assistance, seeds, and amendments that will help implement these practices.
• $3.5 million for conservation equipment assistance grants. These grants can be used to purchase equipment or items to retrofit existing equipment that has climate and water quality benefits. This provides additional dedicated funding for the Soil Health Financial Assistance Program.
• $9.6 million for the agriculture best management practices loan program.
• $3 million for technical assistance, research, demonstration, and promotion projects on properly implementing best management practices and vegetative cover; and more-precise information on nonpoint contributions to impaired waters and for grants to support on-farm demonstration of agricultural practices. This supports several projects, including Discovery Farms Minnesota.
• PFAS in pesticides. Beginning in 2032, pesticides containing perfluoroalkyl and polyfluoroalkyl substances (PFAS) will not be permitted unless MDA determines the use of the chemicals is essential. MDA must also write a report on the use of PFAS in pesticides in Minnesota by Feb. 1, 2024. And:
• Treated seed disposal. The Minnesota Pollution Control Agency (MPCA), in collaboration with MDA and the University of Minnesota, must adopt rules for the disposal of treated seed.

Notably, the ag bill did not include a proposal that would have required MDA to develop treated seed regulations, including establishing a formal verification of need before allowing the use of treated seed. MCGA opposed this proposal, which would have added significant burden to Minnesota farmers.

Ag bill and other related issues

Additionally, there were a variety of other proposals that passed that have an impact on farmers. They include:

• $300,000 for noxious weed grants. This will help cities, counties, and others control noxious weeds, combat invasive species, and protect Minnesota crops.
• $200,000 for farm safety and mental health outreach programs for farmers, ranchers, and others in the ag community.
• $10 million for a new grain indemnity fund. The fund will compensate growers if first purchasers fail to pay them for delivered grain or redeliver the grain. Lawmakers created the fund because the old system for compensating growers who were owed money by elevators for delivered grain did not prevent farmers from sustaining significant losses.
• $300,000 in new funding to MDA to expand international trade opportunities and markets for farmers.
• $125 million for rural broadband expansion.
• $7 million for grants to cooperatives to invest in green fertilizer production facilities.
• $2 million for a University of Minnesota Extension program to help Minnesota’s agriculture sector, land and resource managers, and communities plan for and adapt to weather extremes.
• $3 million to expand the Ag Weather Station Network. This is a new program at MDA that MCGA advocated for early in the Clean Water Council funding process.
• Beginning farmer tax credit. The tax credit was extended, and immediate family members are now allowed to participate in the program for sales of agricultural land. Sellers of land can receive up to 8% of the sale price up to $50,000, against taxes owed on the sale.
• Agricultural homestead first-tier valuation limit. The limit was increased to $3.5 million for 2024.
• Sustainable aviation fuel tax credits. Producers and/or blenders of sustainable aviation fuel may claim a tax credit of $1.50 per gallon. In the 2024-25 biennium, $7.4 million was allocated for the tax credits.
• Clean fuels working group. By Aug. 1, 2023, a Clean Transportation Fuel Standard Working Group must be convened to study and address information gaps and opportunities related to a clean transportation fuel standard. The standard must require that the aggregate carbon intensity of Minnesota’s transportation fuel be reduced by 25% by 2030, 75% by 2040, and 100% by 2050, compared to 2018 levels. The working group must include agricultural commodity organizations.

Read more about relevant bills in the next edition of Corn Talk, Minnesota Corn’s official print publication.