The Minnesota House of Representatives released their budget targets last Saturday. In fiscal years 2026-27, their proposal calls for a $18 million bump to the agriculture budget. For fiscal years 2028-29, agriculture receives the same level of increase.

Across all budget jurisdictions, the House proposed reductions of $1.16 billion in fiscal years 2026-27 and $2.6 billion in fiscal years 2028-29. In comparison, the Senate proposed cutting $754 million in fiscal years 2026-27 and $1.74 billion in fiscal years 2028-29. The two bodies will eventually need to negotiate joint targets, which create the framework for the final budget passed by the Legislature.

House and Senate committees will roll out, debate, and pass their budget bills to the House Ways and Means Committee or the Senate Finance Committee in the coming week. They must complete this process by 5:00pm on April 11 to meet the legislative deadline. The Senate Agriculture Committee finished their work early, passing their budget out of committee earlier today.

 

Bills this week:

HF 601 (Burkel)/SF 1647 (Johnson) - Depredation compensation payments appropriation.

Summary: Provides money in the current fiscal year to cover the funding shortfall for wolf and elk depredation payments.

Position: Support as written.

To our members: The Minnesota Department of Agriculture has already depleted its funds for depredation payments in the current fiscal year, which ends June 30. This bill would cover the funding shortfall and allow MDA to resume payments before July 1.

Action taken by MFBF: Provided written testimony in support of the legislation.

Status: Passed by the House Ways and Means Committee on 04/01/2025 and sent to the House floor. Introduced in the Senate and referred to the Agriculture Committee on 02/20/2025.

 

HF 2667 (Nelson)/SF 2788 (Dahms) - Restricted pesticide handler definition addition provision and restricted pesticide license requirements for handlers modifications.

Summary: Creates a definition of a pesticide handler and clarifies that a license is not required to handle restricted use pesticides.

Position: Support as written.

To our members: Legislation passed last session to bring Minnesota’s restricted use pesticide applicator licensing in line with federal law. However, this inadvertently also required handlers involved in carrying and mixing the chemicals to hold an applicator license. This bill seeks to clarify that a handler does not need a license while remaining compliant with federal law.

Action taken by MFBF: Communicated our support to key legislators.

Status: Laid over in the House Agriculture Committee on 04/02/2025. Laid over as amended in the Senate Agriculture Committee on 03/21/2025.

 

HF 2916 (Smith)/SF 2845 (Boldon) - Southeast regional groundwater protection and soil health initiative appropriation.

Summary: Expands the Olmsted Groundwater Protection and Soil Health Initiative to eight counties in southeast Minnesota with karst geology.

Position: Support as written.

To our members: This program is voluntary, farmer-friendly, and provides different practices for farmers to adopt. Having results-based incentives allows farmers to choose what works best for their operation. By providing incentives that defray the cost of trying new crops and practices, this program will expand cover crop use and experiment with different ideas. 

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

Status: Laid over in the House Agriculture Committee on 04/02/2025. Introduced in the Senate and referred to the Agriculture Committee on 03/20/2025.

 

SF 570 (Hauschild)/HF XXXX - Wetland Conservation Act determinations efficiency modifications; appropriating money.

Summary: Streamlines the environmental permitting process through the Minnesota Pollution Control Agency (MPCA) and Environmental Quality Board (EQB). Shortens timeline for local governments to make Wetland Conservation Act (WCA) determinations.

Position: Support as amended.

To our members: Inefficiencies with environmental permitting have resulted in Minnesota losing out on economic opportunities to neighboring states. Streamlining the permitting process will make Minnesota’s business and economic environment more competitive and help to retain businesses that already call Minnesota home.

Action taken by MFBF: Joined the Environmental Permitting Reform Coalition and signed onto a letter of support.

Status: Passed the Senate Environment Committee and sent to the State and Local Government Committee on 04/04/2025. Not yet introduced in the House.

 

SF 1428 (Weber)/HF 1292 (Huot) - Beginning farmer tax credits eligibility expansion provision.

Summary: Allows a limited liability company (LLC) owned by an individual or an LLC owned by up to two individuals who are spouses or family members to qualify for the Beginning Farmer Tax Credit.

Position: Support as amended.

To our members: This bill will enable beginning farmers who have structured their farm as a limited liability company to apply for the Beginning Farmer Tax Credit as an LLC rather than as an individual. When the beginning farmer receives an asset under the credit, the asset will belong to the LLC rather than the individual.

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

Status: Laid over in the Senate Taxes Committee on 04/03/2025. Passed by the House Agriculture Committee on 03/17/2025 and sent to the Taxes Committee.

 

SF 2458 (Putnam)/HF 2446 (Anderson, P. H.) – Omnibus agriculture finance and policy bill.

Summary: Sets the budget for the Department of Agriculture, the Board of Animal Health, and the Agricultural Utilization Research Institute. Decreases the overall agriculture budget by $313,000 in fiscal years 2026-27 but increases it by $2.9 million in fiscal years 2028-29. In line with MFBF’s priority issues, the bill contains funding increases for the Board of Animal Health, wolf and elk depredation payments, Minnesota Agricultural Education and Leadership Council grants, and Farm Business Management grants, among other programs.

Position: Support as amended.

To our members: The agriculture budget comprises 0.25 percent of the entire state budget while accounting for a disproportionate amount of the state’s economic activity. With Minnesota’s tight fiscal situation, we will not balance the budget by drastically cutting agriculture programs. This budget bill recognizes and respects that.

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

Status: Passed by the Senate Agriculture Committee as amended on 04/04/2025 and sent to the Finance Committee. Hearing in the House Agriculture Committee scheduled for 04/07/2025.

 

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.