2024 state legislative session ramps up
By Amanda Bilek
Senior Public Policy Director, Minnesota Corn Growers Association
The Legislature is taking a brief pause today from floor sessions and committee activity to enable legislators to travel home and attend precinct caucuses this evening, but activity will pick back up tomorrow afternoon.
On Thursday, the Minnesota Office of Management and Budget will present an updated state budget forecast. The November forecast projected a $2.4 billion surplus for FY24/25 but also a structural imbalance of $2.4 billion for FY26/27, meaning the actual surplus is approximately $82 million. Following the February forecast, Governor Walz will outline a supplemental budget request and lawmakers will use the February numbers plus the governor’s supplemental budget request to enact any budget measures for the remainder of the legislative session.
Last week, the Minnesota Corn Growers Association held our annual day on the hill where farmer-leaders from across Minnesota met with nearly 30 legislators, agencies, and Governor Walz to highlight our 2024 legislative priorities. In case you missed the recap with pictures, you can find it here.
One of the key issues emphasized last week by MCGA was our collaborative approaches for improved nitrogen management and how it fits within a farmer’s sustainability story. In response to an environmental group petition to the Environmental Protection Agency (EPA) to protect drinking water in Southeast Minnesota, the House and Senate agriculture committees have begun to dig into this topic.
Last Thursday, the House Agriculture Finance and Policy Committee held an informational hearing on nitrates. Committee members were provided with overviews on soils and the nitrogen cycle from Dr. Carl Rosen at the University of Minnesota. The Minnesota Department of Agriculture (MDA) discussed the EPA petition and the state’s near- and long-term response. Materials from there hearing are available here.
This Thursday, the committee will continue to examine this topic with additional presentations from environmental and agriculture groups on nitrates. MCGA President Dana-Allen Tully is scheduled to testify and will be discussing activities by corn farmers and Minnesota Corn to improve nutrient use efficiency. The committee will also hear two bills. The first, HF 4135, authored by Rep. Rick Hansen (DFL- South St. Paul) would increase the current MDA inspection fee on July 1, 2025, to 70 cents/ton on all nitrogen fertilizer sold and would add new fee of 99 cents/ton enacted retroactively to July 1, 2023, and increased to $1.39/ton of all nitrogen fertilizer sold. Revenue collected under the new fee would be deposited in a private well drinking water assistance account and allocate funds for grants in Southeast Minnesota to provide aid to citizens with private drinking water wells that exceed the drinking water standard.
The second bill, HF 4044, authored by Rep. Steve Jacob (R-Winona), proposes to establish a $5 per acre property tax credit for farmers in Southeast Minnesota that are certified through MDA’s Minnesota Agricultural Water Quality Certification Program.
Overall, MCGA is supportive of public policy that will protect groundwater by incentivizing farmers with tools to help accelerate the implementation of new practices similar to what is being proposed in HF 4044 instead of HF 4135, and we will be communicating that position to policymakers. We also support using general or dedicated dollars, such as the Clean Water Fund, to target resources to where they are needed most in Southeast Minnesota to ensure access to clean drinking water for residents.
Finally, the other area to cover in this week’s update is legislation that was considered last week related to agricultural drainage and public waters.
Last Wednesday, the House Environment and Natural Resources Finance and Policy Committee heard HF 3389, authored by Rep. Kristi Pursell (DFL-Northfield), which originally proposed to have soil and water conservation districts collect information on new or modified drain title projects and report the information to the Minnesota Board of Water and Soil Resources. After MCGA and other ag groups met with Rep. Pursell to share our concerns, the bill was completely re-written to add drain tile to the items for real estate disclosure, similar to the process that exists for private wells. We appreciate working with Rep. Pursell on the bill and will continue to do so as it moves through the process to refine a few other elements of the latest version. The Senate companion has been introduced but has not been scheduled for a hearing.
Also, last Wednesday, the House Environment and Natural Resources Finance and Policy Committee heard HF 3385, authored by Rep. Pursell. The bill would essentially state that if a public water does not appear on the Public Waters Inventory but meets the statutory definition, it is a public water. The bill was written in response to a state Supreme Court case in 2022 that stemmed from a dispute between landowners and the local drainage authority and the Department of Natural Resources on whether the upper reach of Limbo Creek was a public water. More background on the case and decision is available here. The Senate companion was heard in the Senate Environment, Climate, and Legacy Committee on Thursday. Joe Smentek from the Minnesota Soybean Growers Association testified in both committees representing the interests of corn and soybean farmers and communicated to legislators that this bill does not provide any certainty to farmers on what is or what is not a public water in Minnesota. We will continue to work together to further refine this bill and work to provide certainty for landowners.
