Week of March 3-7

Minnesota state officials received an update on the State’s financial condition Thursday. The February Economic Forecast indicated that the surplus for the upcoming budget cycle has shrunk from $616 million down to just $456 million. The looming shortfall in the budget cycle for fiscal years 2028-29 is projected to increase by $850 million, for a total deficit of nearly $6 billion. With the new forecast, lawmakers will now begin to construct a state budget in earnest.

Budget targets, which set the spending levels for each budget jurisdiction, will be announced in early April. While the legislative session must adjourn no later than May 19, a budget must be enacted before July 1. If a budget is not set by the end of the legislative session, a special session will be needed to complete that work.

The Senate Agriculture Committee held a hearing focused on soil and water quality, and several bills dealing with that topic. The House Agriculture Committee on Monday considered bills funding the Rural Finance Authority, the Agricultural Utilization Research Institute, and biofuel infrastructure grants. At Wednesday’s hearing, they heard legislation concerning telecommunications installer qualifications, importation of Cervidae to zoos, grants to prevent the spread of avian influenza, and funding for farmer mental health outreach and farm safety grants.

Bills this week:

HF 43 (Anderson, P. H.)/SF 1507 (Dornink) - Biofuel infrastructure grants appropriation.Summary: Provides funding for grants to gas stations to replace or upgrade equipment to be capable of dispensing biofuels.
Position: Support as amended.
To our members: Expanding the use of renewable fuels is one of the fastest ways to lower emissions in our state. Biofuels benefit all Minnesotans by lowering gas prices, improving air quality, and strengthening the economy. Investing in biofuels also gives farmers the opportunity to contribute to producing cleaner-burning, higher-octane fuels that reduce greenhouse gases.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Passed the House Agriculture Committee and sent to the Capital Investment Committee on 03/03/2025. Introduced in the Senate and referred to the Agriculture Committee on 02/17/2025.

HF 770 (Anderson, P. H.)/SF 1209 (Putnam) - Rural Finance Authority bond issuance and appropriation.
Summary: Authorizes the sale of bonds to replenish funding for programs under the Rural Finance Authority (RFA).
Position: Support as amended.
To our members: The RFA plays a critical role in ensuring that farmers—especially beginning farmers and those facing financial distress—have access to the capital they need to establish and sustain their operations. By providing affordable and flexible loan programs, the RFA supports not only individual producers but also the broader agricultural economy.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Passed the House Agriculture Committee and sent to the Capital Investment Committee on 03/03/2025. Introduced in the Senate and referred to the Capital Investment Committee on 02/10/2025.

HF 857 (Nelson)/SF 934 (Kupec) – Agricultural Utilization Research Institute appropriation
Summary: Appropriates money to the Agricultural Utilization Research Institute (AURI) for a cost-of-living adjustment.
Position: Support as written.
To our members: AURI conducts research and development for value-added agriculture and works with entrepreneurs to scale and commercialize new products. MFBF appreciates their efforts to find new uses for agricultural products. Value-added products provide new opportunities for farmers and help grow Minnesota’s agricultural economy.
Action taken by MFBF: Provided written testimony in support of the bill.
Status: Laid over in the House Agriculture Committee on 03/03/2025. Laid over in the Senate Agriculture Committee on 02/12/2025.

HF 1503 (Burkel)/SF 1839 (Putnam) - Program establishment to provide grants to prevent the spread of avian influenza.
Summary: Establishes and funds a grant program to poultry producers for the installation of measures to prevent the spread of avian influenza, such as lasers or visual deterrents.
Position: Support as amended.
To our members: As the number one turkey-producing state, preventing the spread of avian influenza is critical for poultry producers and our agricultural economy. Lasers and lighting systems have proven successful at keeping wild birds away from domestic poultry and this program financially assists producers in acquiring such equipment.
Status: Laid over in the House Agriculture Committee on 03/05/2025. Laid over in the Senate Agriculture Committee on 02/26/2025.

HF 1669 (Davids)/SF 1312 (Rest) - Allocation increase for the credit for sustainable aviation fuel.
Summary: Increases Minnesota’s existing tax credit for production of sustainable aviation fuel (SAF).
Position: Support as amended.
To our members: SAF provides a promising market for the crops and feedstocks that our farmers produce right here in Minnesota. Scaling and expanding SAF production has strong potential to foster additional demand for these commodities, strengthening farm income and rural economies.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Laid over as amended in the House Taxes Committee on 03/06/2025. Passed the Senate Taxes Committee as amended and sent to the Senate Floor on 02/27/2025.

HF 1702 (Anderson, P. H.)/SF XXXX - Funding provided for mental health outreach and support and farm safety grant and outreach programs, and money appropriated.
Summary: Provides funding to the Minnesota Department of Agriculture for farmer mental health outreach and farm safety grants.
Position: Support as written.
To our members: The Minnesota Farm and Rural Helpline and mental health counseling services have proven invaluable for those in crisis. Additionally, farm safety grants play a critical role in preventing accidents and injuries on the farm. Agriculture remains one of the most dangerous industries, with risks of equipment and machinery accidents, grain bin accidents, and livestock-related injuries.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Laid over as amended in the House Agriculture Committee on 03/06/2025. Not yet introduced in the Senate.

SF 755 (Anderson)/HF 1423 (McDonald) - Shareholder limit increase for entity-owned agricultural homestead property.
Summary: Increases the limit for the number of shareholders of agricultural homestead property from 12 to 18.
Position: Support as written.
To our members: Farming has a long tradition as a family enterprise. This bill seeks to ensure that farms with many family members participating in the operation, including extended family, are not essentially penalized on their taxes by losing their agricultural homestead status.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Laid over in the Senate Taxes Committee on 03/05/2025. Introduced in the House and referred to the Taxes Committee on 02/24/2025.

SF 882 (Gustafson)/HF 985 (Nelson) - Soil health financial assistance program appropriation.
Summary: Provides grant funds for farmers to purchase or retrofit equipment in order to adopt soil health practices.
Position: Support as amended.
To our members: These grants have and will continue to actively put conservation practices on the ground through a wide variety of eligible expenses that are often too big of a barrier for farmers to overcome on their own. The program allows for a wide variety of practices that provide farmers the possibility to make active decisions about what will work best on their farm depending on where they live.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Laid over as amended in the Senate Agriculture Committee on 03/05/2025. Introduced in the House and referred to the Agriculture Committee on 02/17/2025.

SF 1269 (Drazkowski)/HF 363 (Jacob) - Minnesota agricultural water quality certification program credit for certain acres establishment and appropriation.
Summary: Establishes a $5 per acre incentive for farms in the Karst region that enroll in the Minnesota Agricultural Water Quality Certification Program.
Position: Support as amended.
To our members: Minnesota’s Agricultural Water Quality Certification Program has been a successful voluntary initiative that recognizes and rewards farmers for implementing conservation practices that protect our state’s water resources. This credit would financially assist farmers who wish to further adopt conservation practices or become ag water quality certified achieve those goals.
Action taken by MFBF: Provided verbal testimony in support of the bill.
Status: Passed the Senate Taxes Committee as amended and sent to the Environment Committee on 03/05/2025. Introduced in the House and referred to the Taxes Committee on 02/24/2025.

SF 1419 (Putnam)/HF 1626 (Vang) - Agricultural assets owners available credit cap elimination provision.
Summary: Removes the cap on the amount of funding available for the Beginning Farmer Tax Credit.
Position: Support as written.
To our members: The Beginning Farmer Tax Credit helps new farmers access land, equipment, livestock, and other assets needed to build a successful farm business. Lifting the cap on total funding would ensure no new farmers are turned away from the program as has happened over the last two years.
Action taken by MFBF: Signed onto a letter of support with other agricultural organizations.
Status: Passed the Senate Taxes Committee as amended and sent to the Agriculture Committee on 03/05/2025. Introduced in the House and referred to the Taxes Committee on 02/24/2025.