With a week and a half left until adjournment, legislative leaders at the State Capitol have yet to find agreement on joint budget targets, which provides the topline framework to complete a budget. A special session becomes more likely each day without a topline agreement.

Tuesday was an especially busy day in St. Paul. The Minnesota Farm Bureau Federation Board of Directors spent the day meeting with key legislators and the Governor to make a final push on MFBF’s legislative priorities. Identifying important issues during final negotiations helps to keep them top of mind as decisions are made.

Senator Keri Heintzeman (R-Nisswa) was sworn into office after winning the Senate District 6 special election a week prior, returning the Senate’s balance to 34 Democrats and 33 Republicans.

The Senate passed SF 2300 (Seeberger) on a bipartisan vote of 38-29, which was successfully amended to include an exemption from the Earned Sick and Safe Time law for farms with five or less employees, as well as for all businesses with three or less employees. All but one Republican supported the final bill, along with Senators Nick Frentz (DFL-North Mankato), Grant Hauschild (DFL-Hermantown), Matt Klein (DFL-Mendota Heights), Rob Kupec (DFL-Moorhead), Aric Putnam (DFL-St. Cloud), and Judy Seeberger (DFL-Afton). MFBF appreciates the Senate’s bipartisan support for this legislation.

House and Senate conferees for the agriculture budget bill, HF 2446, were named early this week and the conference committee met Friday morning. They walked through the provisions in each version of the bill and compared same, similar, and different provisions. No official action was taken at the meeting.


Bills this week:

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. The Senate version of the bill 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 Senate bill contains funding increases for the Board of Animal Health, the agricultural emergency account, wolf and elk depredation payments, Minnesota Agricultural Education and Leadership Council grants, and Farm Business Management grants, among other programs. The Senate version also contains fee increases for some grain buyers, which is a concern we have communicated to key lawmakers.

On the House side, the bill increases the overall agriculture budget by $17 million in fiscal years 2026-27 and maintains that increase in fiscal years 2028-29. Much like the Senate version, it contains funding increases for the Board of Animal Health, the agricultural emergency account, wolf and elk depredation payments, Minnesota Agricultural Education and Leadership Council grants, and Farm Business Management grants, among other programs.

Position: Support both versions of the bill 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. These budget bills recognize and respect that by providing strong investment in programs important to Minnesota farmers and ranchers.

Status: House conferees (Anderson, P. H.; Hansen, R.; Harder; Smith; Burkel; Gottfried) appointed on 05/05/2025. Senate conferees (Putnam; Kupec; Westrom) appointed on 05/06/2025. Conference committee hearing held on 05/09/2025, no official action taken.

 

SF 2300 (Seeberger)/HF 2025 (Baker) – Earned sick and safe time provisions modifications.

Summary: As amended on the Senate floor, exempts farms with five or less employees from the Earned Sick and Safe Time (ESST) law. Also exempts all businesses with three or less employees from ESST. Contains several other small tweaks to the ESST law.

Position: Support as amended on the Senate floor.

To our members: There has been confusion among employers regarding how to implement the ESST law. This exemption would provide relief to some small businesses and the agriculture sector, which already struggles with finding reliable, consistent labor.

Action taken by MFBF: Communicated our support to key lawmakers. Previously provided verbal testimony in support of an agricultural exemption to ESST.

Status: Passed the Senate floor as amended 38-29 and sent to the House on 05/06/2025. Introduced in the House and referred to the Workforce Committee on 03/10/2025.

 

SF 2374 (Rest)/HF 2437 (Davids) – Omnibus tax bill.

Summary: Makes changes to a variety of tax provisions. The Senate version eliminates the funding cap on the Beginning Farmer Tax Credit, establishes an Agricultural Water Quality Certification Tax Credit in southeast Minnesota, and increases the allocation for the Sustainable Aviation Fuel Tax Credit. Also contains updates to special agricultural homestead that will help preserve family farms and ranches.

Position: Support provisions in the Senate version as written. Neutral on the House version.

To our members: Items in the Senate bill help preserve family farms while also bringing the next generation of farmers into the fold. It also recognizes the environmental stewardship of farmers and ranchers, and further opens opportunities to produce sustainable fuels made from crops grown right here in Minnesota.

Action taken by MFBF: Provided written testimony in support of the provisions outlined above.

Status: Passed the Senate Taxes Committee and sent to the Senate floor on 05/08/2025. Passed the House Ways and Means Committee as amended and sent to the House floor on 05/08/2025.

 

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.