Protection for grain sellers, money for broadband among key provisions in new law

Additional support for emerging farmers, meaningful protection for grain sellers and an additional $100 million to expand access to broadband are some provisions of a new law that provides funding for the Department of Agriculture.

The legislation creates a grain indemnity fund to compensate farmers should an elevator go bust and calls for $10 million to get the fund off the ground. It also repeals statutes requiring surety bonds for established, licensed grain purchasers.

If the balance falls below $8 million, premiums of no more than 0.2% of the price of grain sold will be paid into the account until the grain indemnity account has a minimum balance of $15 million, unless the Department of Agriculture suspends premium collections early due to economic hardship. .

Sellers may opt out of the grain indemnity program and have premiums refunded. They may return to the program by paying back any refunds plus interest. Those reentering will not be eligible for any claims for at least 120 days.

Sponsored by Rep. Samantha Vang (DFL-Brooklyn Center) and Sen. Aric Putnam (DFL-St. Cloud) the law mostly takes effect July 1, 2023, for the finance provisions and Aug. 1, 2023 for policy-only provisions.

HF2278/SF1955*/CH43

Appropriations

General Fund appropriations by agency in the 2024-25 biennium are:

• $163.45 million to the Department of Agriculture (an increase of nearly $40 million);

• $125 million to the Department of Employment and Economic Development Office of Broadband Development (an increase of $100 million);

• $12.64 million to the Board of Animal Health; and

• $10.48 million to the Agricultural Utilization Research Institute.

Appropriations for the Agricultural Growth, Research, and Innovation (AGRI) Program are $50.21 million including $11.5 million for bioincentive payments. The program was established in 2015 to encourage production of advanced biofuels, renewable chemicals and biomass thermal energy. Other spending includes:

• $4 million to the Dairy Assistance, Investment, Relief Initiative program which supports smaller dairy farms enrolled in the federal Dairy Margin Coverage Program;

• $4 million for grants to support urban and youth agriculture programs;

• $2.5 million for livestock processing grants;

• $2.3 million to the Farm to School program, which can include early childhood education centers; and

• $2 million for the good food access program.

The law appropriates $21.4 million to the University of Minnesota agriculture research, education, extension, and technology transfer program. Specific appropriations include:

• $4.5 million to Minnesota Agricultural Education Leadership Council;

• $2 million for avian flu research;

• $1.6 million to Forever Green, which develops winter-hardy, living soil cover crops; and

• $700,000 for new deep winter greenhouses.

Other specific appropriations in the law include:

• $3.9 million to Second Harvest Heartland for the state’s six Feeding America food banks. At least $850,000 must be for milk;

• $1.25 million for soil health grants up to $50,000 per recipient;

• $1.2 million to replenish the agriculture rapid response account;

• $800,000 transfer to the pollinator research account;

• $500,000 to develop continuous-living cover crops;

• $372,000 to promote Minnesota grown products;

• $300,000 to for noxious weed management;

• $150,000 to support a meat processing liaison to help new and expanding meat processors with their business; and

• $50,000 to develop an aquaculture plan.

Broadband

The law will appropriate $127.5 million to the Department of Employment and Economic Development’s Office of Broadband Development. It also increases the amount available to a single project in the border-to-border broadband program to $10 million.

Furthermore, the law will set aside $20 million each year for projects where a 50% state match is insufficient. The lower-density program can fund up to 75% of project costs.

Policy provisions

A major policy provision aims to reduce the presence of perfluoroalkyl and polyfluoroalkyl substances in the environment. Beginning Jan. 1, 2032, the commissioner may not register a pesticide product that contains intentionally added PFAS unless it is determined to be an unavoidable use.

The Department of Agriculture is to provide an interim report to the Legislature by Feb. 1, 2024, on the risk and alternatives to pesticides containing PFAS. A final report is due one year later.

Additionally, the law will increase the size of the Board of Animal Health from six to seven members. Membership will be three livestock producers, one member of a federally recognized tribe with experience in animal husbandry, and three practicing veterinarians, one of whom specializes in companion animals. As much as possible, the board should have geographic and gender balance. The provision takes effect July 1, 2023. (Art. 2, Secs. 29-38, 122, 138)

Other provisions will:

• allow the Department of Agriculture to set an annual surcharge between 3% and 8% on licenses and permits it offers with proceeds used to modernize the department’s information technology and create electronic permitting and licensing systems;

• let the department raise a fertilizer inspection fee to no more than 70 cents per ton;

• create an emerging farmer’s office;

• modify the downpayment assistance grant program to require a minimum $8,000 match for grants up to $15,000;

• establish a soil health assistance program with grants to support increasing organic carbon retained in soil and reducing nitrous oxide and methane emissions;

• prohibit non-disclosure clauses in carbon storage contracts;

• allow the Department of Natural Resources to control for nonnative Phragmites similarly to its management of purple loosestrife;

• waive fees on nonprofits when they sell nursery stock;

• increase the fee to review food handling facilities for those larger than 999 square feet; and

• require the Department of Agriculture, cultivated wild rice produces, representatives of Tribal governments, the College of Food Agricultural and Natural Resource Sciences, and the University of Minnesota to make recommendations on the wild rice breeding program. (Art. 2, Secs. 1, 3, 8, 10, 12, 14, 39-40, 94, 117, 140)

SF1955* / HF2278 / CH43