Legislative Update: State Legislature convenes under unique circumstances
Earlier this month, the 94th Minnesota State Legislature convened albeit under unique circumstances. Due to the unfortunate passing of state Senator Kari Dziedzic (DFL-Minneapolis) at the end of 2024, the Senate is tied at 33-33. Senate caucus leaders were able to develop a power sharing agreement to operate the chamber until the special election to fill the vacant Senate seat. That special election is happening today and since it is considered to be a safe DFL seat, the Senate DFL caucus will likely return to a one-vote majority.
The Minnesota House of Representatives is a different story. Following the November election, the House was tied at 67-67 but a successful residency challenge by the GOP over a Roseville House seat resulted in a 67-66 GOP one seat majority. Power sharing negotiations were put on hold and the House GOP caucus conducted business as usual for the first two weeks of session while the DFL House members stayed away from the Capitol to deny the GOP a quorum. A State Supreme Court decision last Friday concluded that 68 members are needed for a quorum, despite vacancies, and therefore any of the business conducted by the GOP for the first two weeks of session were negated. Committee hearings have been cancelled and until House caucus leaders work out a solution to the impasse, it is unlikely any work will occur in the House.
Despite these challenging and evolving dynamics, the Minnesota Corn Growers Association (MCGA) is working to move ahead with legislative priorities for 2025.
At the top of our priority list, is an old priority, the buffer property tax exemption. 2025 marks ten years since the passage of the Minnesota buffer law requiring vegetative buffers along public waters and public drainage ditches. Farmers are 99.8% compliant with the law despite no financial assistance to come into compliance. To add insult to injury, farmers are still taxed on those acres at regular ag land rates as if those acres were still in production. Finally, the State Legislature has mustered the political will in the past to appropriate money for buffer implementation and compliance. Since 2017 the state has spent $95 million through a combination of general fund and Clean Water Fund appropriations to local governments to ensure compliance with the law.
It is the position of MCGA that we are well past the time to address the property tax inequity on acres in compliance with the buffer law. It is estimated that it would cost the state about $8.75 million to eliminate the property taxes on acres in compliance with the buffer law and for the state to reimburse the local taxing jurisdictions for the lost revenue due to the state decision in 2015 to mandate buffers. This is not compensation and will not provide significant property tax relief but is simply an issue of fairness.
Another key priority for MCGA is to take advantage of the potential new market opportunity in Sustainable Aviation Fuel (SAF) and to increase the funding available for Minnesota’s nation-leading SAF tax credit enacted in 2023. MCGA will be working with Delta Airlines and other SAF advocates to help support additional funding for the state tax credit. Although we are definitely in a different fiscal environment compared to the last few years, additional funding for the SAF tax credit was one of the few areas to receive a recommendation in Governor Walz’s budget proposal two weeks ago.
A lot of the focus this year will be on enacting a new two-year state budget. MCGA is looking to maintain important programs in the Minnesota Department of Agriculture budget including biofuels infrastructure, soil health, and agriculture research.
We do anticipate that we will need to play less defense on new legislative proposals that would impact access to crop protection tools, but we will remain vigilant in protecting the tools that farmers need and continue to provide education to policymakers in how these tools are necessary for sustainable production practices for corn.
We are looking forward to another year of advocating for our members and Minnesota corn farmers at the State Legislature but given the current dynamics there is much uncertainty around what will actually get done this year. No matter what, MCGA will be there to advocate for our priorities.
