Session is getting into regular business with committee meetings and bill hearings. The agriculture committees heard presentations from the dairy industry, as Wednesday was Dairy Day at the Capitol. The environment committees heard updates from the Department of Natural Resources and the Pollution Control Agency, along with several bills.

 

This morning, Minnesota Management and Budget (MMB) presented the February Economic Forecast. The Forecast informs lawmakers and the public about the overall availability of state funds. The FY 2026-27 projected balance is now a $3.7 billion surplus, which is $1.3 billion higher than November estimates. For the FY 2028-29 biennium, the state now projects a $377 million surplus. However, MMB noted that beyond that FY 2029 spending growth is expected to outpace revenue growth.

 

Bills this week:

HF 3474 (Hansen, R.)/SF 3912 (Putnam) - Agricultural Utilization Research Institute appropriation.

Summary: As amended, appropriates $79,000 to the Agricultural Utilization Research Institute (AURI) for legal costs.

Position: Support as amended.

To our members: Through no fault of their own, AURI finds themselves engaged in a legal dispute with another entity. Providing funds to cover these legal costs will hopefully lead to resolution of this dispute and allow them to return their full attention to the important work of helping farmers expand their businesses and markets.

Action taken by MFBF: Provided verbal testimony in support of the bill.

Status: Laid over as amended in the House Agriculture Committee on 02/25/2026. Introduced in the Senate on 02/26/2026.

 

HF 3508 (Nelson)/SF 3832 (Kupec) - Eligibility for the Dairy Assistance, Investment, Relief Initiative (DAIRI) program modification.

Summary: Allows dairy farms with no or partial production history in 2022 to participate in the Dairy Assistance, Investment, Relief Initiative (DAIRI) program.

Position: Support as written.

To our members: The DAIRI program helps to incentivize and enhance the usage of the Dairy Margin Coverage (DMC) program created at the federal level, leading to more farmers having protection in the event of low milk prices. When the legislature renewed the DAIRI program in 2023, payment amounts to farms were based off production history in 2022. Today, there are approximately 30 new dairy farms in the state that are ineligible for the program because they were not producing in 2022. This modification allows these new farms to participate in the program.

Action taken by MFBF: Provided verbal testimony in support of the bill.

Status: Passed the House Agriculture Committee on 02/25/2026 and sent to the Ways and Means Committee. Passed the Senate Agriculture Committee on 02/25/2026 and sent to the Finance Committee.

 

SF 3686 (Westrom)/HF XXXX - Rotational grazing pilot program establishment and appropriation.

Summary: As amended, creates a rotational grazing pilot program using dollars from the Environment and Natural Resources Trust Fund.

Position: Support as amended.

To our members: MFBF supports voluntary, incentive-based approaches to conservation practices, including rotational grazing. Rotational grazing can improve pasture management, maintain vegetative cover, reduce erosion and soil compaction, and help protect surface and drinking water sources, all while supporting working livestock operations.

Action taken by MFBF: Provided verbal testimony in support of the bill.

Status: Passed the Senate Agriculture Committee on 02/25/2026 and sent to the Environment, Climate, and Legacy Committee. Not yet introduced in the House.

 

SF 3687 (Westrom)/HF 3812 (Franson) - National school lunch program participants milk offerings clarification provision.

Summary: Federally, the Whole Milk for Healthy Kids Act was signed into law earlier this year, restoring additional milk options in school lunch programs. This bill aligns Minnesota statute in this same direction and affirms our commitment as a state to providing healthy, nutritious drink options to young people in schools.

Position: Support as written.

To our members: MFBF supports healthy food and drink choices for school-age children, including a variety of dairy milk options. Milk provides key vitamins, protein, and other nutrients that are necessary for proper growth and development. Additionally, dairy is a major part of our state’s agricultural economy, and policies that support reasonable consumer choice in schools can help strengthen connections between school meals, farm families, and local agriculture.

Action taken by MFBF: Provided verbal testimony in support of the bill.

Status: Passed the Senate Agriculture Committee on 02/25/2026 and sent to the Education Policy Committee. Not yet introduced in the House.

 

The MFBF public policy team and leadership are keeping track of everything that happens at the Capitol. Throughout the session, we will continue to provide updates and insight into our work on behalf of our members.