1.1 	A bill for an act
1.2 	relating to state government; establishing a budget for the Department of 
1.3 	Agriculture, the Board of Animal Health, the Agricultural Utilization Research 
1.4 	Institute, and the Office of Broadband Development; making policy and technical 
1.5 	changes to agricultural provisions; requiring reports; transferring money; 
1.6 	appropriating money;amending Minnesota Statutes 2024, sections 17.133, 
1.7 	subdivision 2; 18B.01, subdivision 1d, by adding a subdivision; 18B.30; Laws 
1.8 	2023, chapter 43, article 1, section 2, subdivision 4, as amended; proposing coding 
1.9 	for new law in Minnesota Statutes, chapter 18C.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	APPROPRIATIONS

1.13	Section 1. AGRICULTURE APPROPRIATIONS.
 	
1.14 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.15 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.16 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.17 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
1.18 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
1.19 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
1.20 	is fiscal years 2026 and 2027.

1.21				APPROPRIATIONS
	
1.22				Available for the Year
	
1.23				Ending June 30
	
1.24					2026
		2027

1.25	Sec. 2. DEPARTMENT OF AGRICULTURE

1.26	Subdivision 1.Total Appropriation
 	$
	61,342,000
	$
	58,358,000

2.1	Appropriations by Fund
	
2.2		2026
	2027
	
2.3	General
	60,943,000
	57,959,000
	
2.4	Remediation
	399,000
	399,000
	
2.5 	The amounts that may be spent for each 
2.6 	purpose are specified in the following 
2.7 	subdivisions. Notwithstanding Minnesota 
2.8 	Statutes, section 16B.98, subdivision 14, 
2.9 	unless otherwise specified in this section, the 
2.10 	commissioner of agriculture may use up to ten 
2.11 	percent of money appropriated for costs 
2.12 	incurred to administer the Department of 
2.13 	Agriculture's grant programs.

2.14	Subd. 2.Protection Services

2.15	Appropriations by Fund
	
2.16	General
	21,385,000
	21,538,000
	
2.17	Remediation
	399,000
	399,000
	
2.18 	(a) $399,000 the first year and $399,000 the 
2.19 	second year are from the remediation fund for 
2.20 	administrative funding of the voluntary 
2.21 	cleanup program.
2.22 	(b) $319,000 the first year and $319,000 the 
2.23 	second year are for the soil health financial 
2.24 	assistance program under Minnesota Statutes, 
2.25 	section 17.134. The commissioner may award 
2.26 	no more than $50,000 of the appropriation 
2.27 	each year to a single recipient. 
2.28 	Notwithstanding Minnesota Statutes, section 
2.29 	16B.98, subdivision 14, the commissioner may 
2.30 	use up to 6.5 percent of this appropriation for 
2.31 	costs incurred to administer the program. Any 
2.32 	unencumbered balance does not cancel at the 
2.33 	end of the first year and is available in the 
2.34 	second year. Appropriations encumbered 
2.35 	under contract on or before June 30, 2027, for 
3.1 	soil health financial assistance grants are 
3.2 	available until June 30, 2029.
3.3 	(c) $293,000 the first year and $293,000 the 
3.4 	second year are for compensation for livestock 
3.5 	destroyed or crippled by a wolf under 
3.6 	Minnesota Statutes, section 3.737. The first 
3.7 	year appropriation may be spent to compensate 
3.8 	for livestock that were destroyed or crippled 
3.9 	during fiscal year 2025. If the amount in the 
3.10 	first year is insufficient, the amount in the 
3.11 	second year is available in the first year. The 
3.12 	commissioner may use up to $5,000 each year 
3.13 	to reimburse expenses incurred by university 
3.14 	extension educators to provide fair market 
3.15 	values of destroyed or crippled livestock. If 
3.16 	the commissioner receives federal money to 
3.17 	pay claims for destroyed or crippled livestock, 
3.18 	an equivalent amount of this appropriation 
3.19 	may be used to reimburse nonlethal prevention 
3.20 	methods performed by federal wildlife services 
3.21 	staff.
3.22 	(d) $280,000 the first year and $280,000 the 
3.23 	second year are for compensation for crop or 
3.24 	fence damage caused by elk under Minnesota 
3.25 	Statutes, section 3.7371. If the amount in the 
3.26 	first year is insufficient, the amount in the 
3.27 	second year is available in the first year. The 
3.28 	commissioner may use up to $10,000 of the 
3.29 	appropriation each year to reimburse expenses 
3.30 	incurred by the commissioner or the 
3.31 	commissioner's approved agent to investigate 
3.32 	and resolve claims, as well as for costs 
3.33 	associated with training for approved agents. 
3.34 	The commissioner may use up to $40,000 of 
3.35 	the appropriation each year for grants to 
4.1 	producers for measures to protect stored crops 
4.2 	from elk damage. If the commissioner 
4.3 	determines that claims made under Minnesota 
4.4 	Statutes, section 3.737 or 3.7371, are 
4.5 	unusually high, amounts appropriated for 
4.6 	either program may be transferred to the 
4.7 	appropriation for the other program.
4.8 	(e) $825,000 the first year and $825,000 the 
4.9 	second year are to replace capital equipment 
4.10 	in the Department of Agriculture's analytical 
4.11 	laboratory.
4.12 	(f) $850,000 the first year and $850,000 the 
4.13 	second year are for additional meat and poultry 
4.14 	inspection services. The commissioner is 
4.15 	encouraged to seek inspection waivers, match 
4.16 	federal money, and offer more online 
4.17 	inspections for the purposes of this paragraph.
4.18 	(g) $750,000 the first year and $750,000 the 
4.19 	second year are for grants to counties to 
4.20 	support county agricultural inspectors. The 
4.21 	commissioner may use up to three percent of 
4.22 	the appropriation each year for administration. 
4.23 	County agricultural inspectors and 
4.24 	county-designated employees must annually 
4.25 	submit an application, on a form approved by 
4.26 	the commissioner, to be eligible for funding 
4.27 	during a given year. The commissioner must 
4.28 	equally divide available grant money among 
4.29 	eligible counties. To be eligible for grants 
4.30 	under this section, a county must employ a 
4.31 	county agricultural inspector or a 
4.32 	county-designated employee who:
4.33 	(1) has attended training for new county 
4.34 	agricultural inspectors offered by the 
4.35 	commissioner;
5.1 	(2) coordinates with the commissioner  to 
5.2 	review applicable laws and enforcement 
5.3 	procedures;
5.4 	(3) compiles and submits to the commissioner 
5.5 	local weed inspector annual report data;
5.6 	(4) conducts an annual meeting and training 
5.7 	for local weed inspectors; and
5.8 	(5) assists the commissioner with control 
5.9 	programs and other agricultural programs 
5.10 	when requested under Minnesota Statutes, 
5.11 	section 18.81, subdivision 1b, as directed by 
5.12 	the county board.
5.13 	(h) $609,000 the first year and $608,000 the 
5.14 	second year are appropriated to establish and 
5.15 	administer the biofertilizer innovation and 
5.16 	efficiency program under Minnesota Statutes, 
5.17 	section 18C.113. The commissioner may use 
5.18 	up to 6.5 percent of this appropriation for costs 
5.19 	incurred to administer the program. 
5.20 	Notwithstanding Minnesota Statutes, section 
5.21 	16A.28, any unencumbered balance at the end 
5.22 	of fiscal year 2026 does not cancel and is 
5.23 	available until June 30, 2027. The base for this 
5.24 	appropriation is $1,050,000 in fiscal year 2028 
5.25 	and each year thereafter.
5.26 	(i) $100,000 the first year is to conduct a study 
5.27 	with the commissioner of the Pollution Control 
5.28 	Agency, the commissioner of health, the 
5.29 	Metropolitan Council, a representative of a 
5.30 	major wastewater facility located outside the 
5.31 	seven-county metropolitan area, and a 
5.32 	technical panel of scientific experts on the 
5.33 	impact of biosolids contaminated with 
5.34 	perfluoroalkyl and polyfluoroalkyl substances 
6.1 	(PFAS) on farm families and consumers. The 
6.2 	study must include recommendations to the 
6.3 	legislature and be submitted to the chairs and 
6.4 	ranking minority members of the legislative 
6.5 	committees and divisions with jurisdiction 
6.6 	over agriculture policy and finance by June 1, 
6.7 	2027. The commissioner may contract with 
6.8 	an independent third party to conduct the 
6.9 	study.
6.10 	(j) $100,000 the first year is to conduct an 
6.11 	evaluation of the practice performance and 
6.12 	economic performance of the Olmsted County 
6.13 	groundwater protection and soil health 
6.14 	initiative, including the cover crop program, 
6.15 	alternative crops program, and haying, 
6.16 	grazing, and pasture enhancement program. 
6.17 	The evaluation must look at environmental 
6.18 	outcomes, include a cost-benefit analysis, and 
6.19 	be submitted to the chairs and ranking 
6.20 	minority members of the legislative 
6.21 	committees and divisions with jurisdiction 
6.22 	over agriculture policy and finance by June 1, 
6.23 	2027. The commissioner may contract with 
6.24 	an independent third party to conduct the 
6.25 	evaluation.
6.26 	(k) $150,000 the first year is to update and 
6.27 	modify the restricted use pesticide plan.
6.28 	(l) $420,000 the first year and $924,000 the 
6.29 	second year are to support current services.

6.30
6.31	Subd. 3.Agricultural Marketing and 
Development
 		24,529,000
		24,526,000
	
6.32 	(a) $634,000 the first year and $634,000 the 
6.33 	second year are for the continuation of the 
6.34 	dairy development and profitability 
6.35 	enhancement program, including dairy 
7.1 	profitability teams and dairy business planning 
7.2 	grants under Minnesota Statutes, section 
7.3 	32D.30.
7.4 	(b) The commissioner may use funds 
7.5 	appropriated in this subdivision for annual 
7.6 	cost-share payments to resident farmers or 
7.7 	entities that sell, process, or package 
7.8 	agricultural products in this state for the costs 
7.9 	of organic certification. The commissioner 
7.10 	may allocate these funds for assistance to 
7.11 	persons transitioning from conventional to 
7.12 	organic agriculture.
7.13 	(c) $100,000 the first year and $100,000 the 
7.14 	second year are for mental health outreach and 
7.15 	support to farmers, ranchers, farm workers 
7.16 	and employees, and others in the agricultural 
7.17 	profession and for farm and farm worker 
7.18 	safety grant and outreach programs under 
7.19 	Minnesota Statutes, section 17.1195. Mental 
7.20 	health outreach and support may include a 
7.21 	24-hour hotline, stigma reduction, and 
7.22 	education. Notwithstanding Minnesota 
7.23 	Statutes, section 16A.28, any unencumbered 
7.24 	balance does not cancel at the end of the first 
7.25 	year and is available in the second year.
7.26 	(d) $19,935,000 the first year and $19,932,000 
7.27 	the second year are for the agricultural growth, 
7.28 	research, and innovation program under 
7.29 	Minnesota Statutes, section 41A.12.
7.30 	(e) Except as provided in paragraph (f), the 
7.31 	commissioner may allocate the appropriation 
7.32 	in paragraph (d) each year among the 
7.33 	following areas: facilitating the start-up, 
7.34 	modernization, improvement, or expansion of 
7.35 	livestock operations, including beginning and 
8.1 	transitioning livestock operations with 
8.2 	preference given to robotic dairy-milking 
8.3 	equipment; assisting value-added agricultural 
8.4 	businesses to begin or expand, to access new 
8.5 	markets, or to diversify, including aquaponics 
8.6 	systems, with preference given to hemp fiber 
8.7 	processing equipment; facilitating the start-up, 
8.8 	modernization, or expansion of other 
8.9 	beginning and transitioning farms, including 
8.10 	by providing loans under Minnesota Statutes, 
8.11 	section 41B.056; sustainable agriculture 
8.12 	on-farm research and demonstration; the 
8.13 	development or expansion of food hubs and 
8.14 	other alternative community-based food 
8.15 	distribution systems; enhancing renewable 
8.16 	energy infrastructure and use; crop research, 
8.17 	including basic and applied turf seed research; 
8.18 	Farm Business Management tuition assistance; 
8.19 	and good agricultural practices and good 
8.20 	handling practices certification assistance. 
8.21 	Notwithstanding Minnesota Statutes, section 
8.22 	16B.98, subdivision 14, the commissioner may 
8.23 	use up to 6.5 percent of the appropriation in 
8.24 	paragraph (d) for costs incurred to administer 
8.25 	the program.
8.26 	(f) Of the amount appropriated for the 
8.27 	agricultural growth, research, and innovation 
8.28 	program under Minnesota Statutes, section 
8.29 	41A.12:
8.30 	(1) $1,000,000 the first year and $1,000,000 
8.31 	the second year are for distribution in equal 
8.32 	amounts to each of the state's county fairs to 
8.33 	preserve and promote Minnesota agriculture;
8.34 	(2) $3,000,000 the first year and $3,000,000 
8.35 	the second year are for incentive payments 
9.1 	under Minnesota Statutes, sections 41A.16, 
9.2 	41A.17, 41A.18, and 41A.20. If this 
9.3 	appropriation exceeds the total amount for 
9.4 	which all producers are eligible in a fiscal 
9.5 	year, the balance of the appropriation is 
9.6 	available for other purposes under this 
9.7 	paragraph;
9.8 	(3) $3,000,000 the first year and $3,000,000 
9.9 	the second year are for grants that enable retail 
9.10 	petroleum dispensers, fuel storage tanks, and 
9.11 	other equipment to dispense biofuels to the 
9.12 	public in accordance with the biofuel 
9.13 	replacement goals established under 
9.14 	Minnesota Statutes, section 239.7911. A retail 
9.15 	petroleum dispenser selling petroleum for use 
9.16 	in spark ignition engines for vehicle model 
9.17 	years after 2000 is eligible for grant money 
9.18 	under this clause if the retail petroleum 
9.19 	dispenser has no more than 20 retail petroleum 
9.20 	dispensing sites and each site is located in 
9.21 	Minnesota. The grant money must be used to 
9.22 	replace or upgrade equipment that does not 
9.23 	have the ability to be certified for E25. A grant 
9.24 	award must not exceed 65 percent of the cost 
9.25 	of the appropriate technology. A grant award 
9.26 	must not exceed $200,000 per station. The 
9.27 	commissioner must cooperate with biofuel 
9.28 	stakeholders in the implementation of the grant 
9.29 	program. The commissioner, in cooperation 
9.30 	with any economic or community development 
9.31 	financial institution and any other entity with 
9.32 	which the commissioner contracts, must 
9.33 	submit a report on the biofuels infrastructure 
9.34 	financial assistance program by January 15 
9.35 	each year to the chairs and ranking minority 
9.36 	members of the legislative committees and 
10.1 	divisions with jurisdiction over agriculture 
10.2 	policy and finance. The annual report must 
10.3 	include but not be limited to a summary of the 
10.4 	following metrics: (i) the number and types 
10.5 	of projects financed; (ii) the amount of dollars 
10.6 	leveraged or matched per project; (iii) the 
10.7 	geographic distribution of financed projects; 
10.8 	(iv) any market expansion associated with 
10.9 	upgraded infrastructure; (v) the demographics 
10.10 	of the areas served; (vi) the costs of the 
10.11 	program; and (vii) the number of grants to 
10.12 	minority-owned or female-owned businesses;
10.13 	(4) $250,000 the first year and $250,000 the 
10.14 	second year are for grants to facilitate the 
10.15 	start-up, modernization, or expansion of meat, 
10.16 	poultry, egg, and milk processing facilities. A 
10.17 	grant award under this clause must not exceed 
10.18 	$200,000;
10.19 	(5) $2,294,000 the first year and $2,294,000 
10.20 	the second year are for providing more fruits, 
10.21 	vegetables, meat, poultry, grain, and dairy for 
10.22 	children in school and early childhood 
10.23 	education settings, including, at the 
10.24 	commissioner's discretion, providing grants 
10.25 	to reimburse schools and early childhood 
10.26 	education and child care providers for 
10.27 	purchasing equipment and agricultural 
10.28 	products. Of the amount appropriated, 
10.29 	$150,000 each year is for a statewide 
10.30 	coordinator of farm-to-institution strategy and 
10.31 	programming. The coordinator must consult 
10.32 	with relevant stakeholders and provide 
10.33 	technical assistance and training for 
10.34 	participating farmers and eligible grant 
10.35 	recipients;
11.1 	(6) $2,000,000 the first year and $2,000,000 
11.2 	the second year are for grants to facilitate the 
11.3 	development of urban agriculture, including 
11.4 	projects related to youth education, community 
11.5 	and economic development, value-added 
11.6 	processing, and vocational training;
11.7 	(7) $1,000,000 the first year and $1,000,000 
11.8 	the second year are for the good food access 
11.9 	program under Minnesota Statutes, section 
11.10 	17.1017;
11.11 	(8) $200,000 the first year and $200,000 the 
11.12 	second year are for cooperative development 
11.13 	grants under Minnesota Statutes, section 
11.14 	17.1016;
11.15 	(9) $425,000 the first year and $425,000 the 
11.16 	second year are to award grants under the 
11.17 	AGRI works program. Agriculture-related 
11.18 	institutions and nonprofits may apply for 
11.19 	grants up to $20,000. Grantees must submit 
11.20 	their most recent tax documents and complete 
11.21 	an application in the form and manner 
11.22 	prescribed by the commissioner to be eligible 
11.23 	for grants under this appropriation. The base 
11.24 	for this clause is $366,000 in fiscal year 2028 
11.25 	and each year thereafter;
11.26 	(10) $928,000 the first year and $925,000 the 
11.27 	second year are to award grants under the 
11.28 	AGRI support program. Agriculture-related 
11.29 	institutions and nonprofits may apply for 
11.30 	grants over $20,000 but not more than 
11.31 	$200,000. Grantees must submit their most 
11.32 	recent tax documents and complete an 
11.33 	application in the form and manner prescribed 
11.34 	by the commissioner to be eligible for grants 
11.35 	under this appropriation. If the commissioner 
12.1 	determines that application demand for AGRI 
12.2 	works or AGRI support are unusually high, 
12.3 	amounts appropriated for either program may 
12.4 	be transferred to the appropriation for the other 
12.5 	program. The base for this clause is $865,000 
12.6 	in fiscal year 2028 and each year thereafter; 
12.7 	and
12.8 	(11) $225,000 the first year and $225,000 the 
12.9 	second year are for the protecting livestock 
12.10 	grant program for producers to support the 
12.11 	installation of measures to prevent the 
12.12 	transmission of avian influenza. For the 
12.13 	appropriation in this paragraph, a grant 
12.14 	applicant must document a cost-share of 20 
12.15 	percent. An applicant's cost-share amount may 
12.16 	be reduced up to $2,000 to cover time and 
12.17 	labor costs. Notwithstanding Minnesota 
12.18 	Statutes, section 16B.98, subdivision 14, the 
12.19 	commissioner may use up to 6.5 percent of 
12.20 	this appropriation for administrative costs.
12.21 	(g) Notwithstanding Minnesota Statutes, 
12.22 	section 16A.28, the appropriation in paragraph 
12.23 	(d) does not cancel at the end of the second 
12.24 	year and is available until June 30, 2029. 
12.25 	Appropriations encumbered under contract on 
12.26 	or before June 30, 2029, for agricultural 
12.27 	growth, research, and innovation grants are 
12.28 	available until June 30, 2032.
12.29 	(h) The base for the agricultural growth, 
12.30 	research, and innovation program is 
12.31 	$20,038,000 in fiscal year 2028 and each year 
12.32 	thereafter.

13.1
13.2	Subd. 4.Administration and Financial 
Assistance
 		15,029,000
		11,895,000
	
13.3 	(a) $474,000 the first year and $474,000 the 
13.4 	second year are for payments to county and 
13.5 	district agricultural societies and associations 
13.6 	under Minnesota Statutes, section 38.02, 
13.7 	subdivision 1. Aid payments to county and 
13.8 	district agricultural societies and associations 
13.9 	must be disbursed no later than July 15 each 
13.10 	year. These payments are the amount of aid 
13.11 	from the state for an annual fair held in the 
13.12 	previous calendar year.
13.13 	(b) $400,000 the first year and $400,000 the 
13.14 	second year are for grants to the Minnesota 
13.15 	Agricultural Education and Leadership 
13.16 	Council for programs of the council under 
13.17 	Minnesota Statutes, chapter 41D.
13.18 	(c) $1,050,000 the first year and $1,050,000 
13.19 	the second year are to award and administer 
13.20 	farm down payment assistance grants under 
13.21 	Minnesota Statutes, section 17.133, with 
13.22 	priority given to eligible applicants with no 
13.23 	more than $100,000 in annual gross farm 
13.24 	product sales and eligible applicants who are 
13.25 	producers of industrial hemp, cannabis, or one 
13.26 	or more of the following specialty crops as 
13.27 	defined by the United States Department of 
13.28 	Agriculture for purposes of the specialty crop 
13.29 	block grant program: fruits and vegetables, 
13.30 	tree nuts, dried fruits, medicinal plants, 
13.31 	culinary herbs and spices, horticulture crops, 
13.32 	floriculture crops, and nursery crops. 
13.33 	Notwithstanding Minnesota Statutes, section 
13.34 	16A.28, any unencumbered balance at the end 
13.35 	of the first year does not cancel and is 
14.1 	available in the second year and appropriations 
14.2 	encumbered under contract by June 30, 2027, 
14.3 	are available until June 30, 2029. The base for 
14.4 	this appropriation is $1,400,000 in fiscal year 
14.5 	2028 and each year thereafter.
14.6 	(d) $850,000 the first year and $850,000 the 
14.7 	second year are for the purchase of milk for 
14.8 	distribution to Minnesota's food shelves and 
14.9 	other charitable organizations that are eligible 
14.10 	to receive food from the food banks. Milk 
14.11 	purchased with grant money must be acquired 
14.12 	from Minnesota milk processors and based on 
14.13 	low-cost bids. The milk must be allocated to 
14.14 	each Feeding America food bank serving 
14.15 	Minnesota according to the formula used in 
14.16 	the distribution of United States Department 
14.17 	of Agriculture commodities under The 
14.18 	Emergency Food Assistance Program. The 
14.19 	commissioner may enter into contracts or 
14.20 	agreements with food banks for shared funding 
14.21 	or reimbursement of the direct purchase of 
14.22 	milk. Each food bank that receives funding 
14.23 	under this paragraph may use up to two 
14.24 	percent for administrative expenses. 
14.25 	Notwithstanding Minnesota Statutes, section 
14.26 	16A.28, any unencumbered balance the first 
14.27 	year does not cancel and is available the 
14.28 	second year.
14.29 	(e) $260,000 the first year and $260,000 the 
14.30 	second year are for a pass-through grant to 
14.31 	Region Five Development Commission to 
14.32 	provide, in collaboration with Farm Business 
14.33 	Management, statewide mental health 
14.34 	counseling support to Minnesota farm 
14.35 	operators, families, and employees, and 
15.1 	individuals who work with Minnesota farmers 
15.2 	in a professional capacity. Region Five 
15.3 	Development Commission may use up to 6.5 
15.4 	percent of the grant awarded under this 
15.5 	paragraph for administration.
15.6 	(f) $1,000,000 the first year and $1,000,000 
15.7 	the second year are to expand the Emerging 
15.8 	Farmers Office and provide services to 
15.9 	beginning and emerging farmers to increase 
15.10 	connections between farmers and market 
15.11 	opportunities throughout the state. This 
15.12 	appropriation may be used for grants, 
15.13 	translation services, training programs, or 
15.14 	other purposes in line with the 
15.15 	recommendations of the emerging farmer 
15.16 	working group established under Minnesota 
15.17 	Statutes, section 17.055, subdivision 1.
15.18 	(g) $137,000 the first year and $203,000 the 
15.19 	second year are to support current services.
15.20 	(h) $337,000 the first year and $337,000 the 
15.21 	second year are for farm advocate services. 
15.22 	Of these amounts, $50,000 the first year and 
15.23 	$50,000 the second year are for the 
15.24 	continuation of the farmland transition 
15.25 	programs and may be used for grants to 
15.26 	farmland access teams to provide technical 
15.27 	assistance to potential beginning farmers. 
15.28 	Farmland access teams must assist existing 
15.29 	farmers and beginning farmers with 
15.30 	transitioning farm ownership and farm 
15.31 	operation. Services provided by teams may 
15.32 	include but are not limited to mediation 
15.33 	assistance, designing contracts, financial 
15.34 	planning, tax preparation, estate planning, and 
15.35 	housing assistance.
16.1 	(i) $3,100,000 the first year is for a grant to 
16.2 	First District Association for a wastewater 
16.3 	treatment project.
16.4 	(j) $1,000,000 the first year and $1,000,000 
16.5 	the second year are to award grants to eligible 
16.6 	applicants for participation in the local food 
16.7 	purchasing assistance grant program. Selected 
16.8 	applicants must use grant money to procure 
16.9 	and distribute food to communities. Eligible 
16.10 	applicants include but are not limited to 
16.11 	individuals, nonprofit organizations, for-profit 
16.12 	businesses, Tribal governments, government 
16.13 	entities, agricultural cooperatives, economic 
16.14 	development organizations, and educational 
16.15 	institutions. When awarding grants, the 
16.16 	commissioner must give preference to 
16.17 	applicants that:
16.18 	(1) source 100 percent of food from 
16.19 	Minnesota;
16.20 	(2) source at least 70 percent of food from 
16.21 	farmers who are experiencing limited land 
16.22 	access or limited market access as defined in 
16.23 	Minnesota Statutes, section 17.133, 
16.24 	subdivision 1; and
16.25 	(3) distribute food at no cost to communities 
16.26 	that have low supermarket access in 
16.27 	census-designated food deserts or low- or 
16.28 	moderate-income areas with substantial 
16.29 	subpopulations, such as the aging population 
16.30 	or people with disabilities.
16.31 	(k) $100,000 the first year is to be awarded as 
16.32 	a grant in a competitive bid process to an 
16.33 	entity that is not a for-profit entity to conduct 
16.34 	a study of market and workforce factors that 
17.1 	may contribute to the incorrect marking for 
17.2 	the installation of underground 
17.3 	telecommunications infrastructure that is 
17.4 	located within ten feet of existing underground 
17.5 	utilities or that crosses the existing 
17.6 	underground utilities. The study must include 
17.7 	recommendations to the legislature and be 
17.8 	submitted to the chairs and ranking minority 
17.9 	members of the legislative committees and 
17.10 	divisions with jurisdiction over agriculture 
17.11 	policy and finance by June 1, 2027.
17.12 	(l) The commissioner shall continue to 
17.13 	increase connections with ethnic minority and 
17.14 	immigrant farmers to farming opportunities 
17.15 	and farming programs throughout the state.

17.16	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	6,767,000
	$
	6,767,000
	
17.17 	$357,000 the first year and $357,000 the 
17.18 	second year are to maintain the current level 
17.19 	of service delivery.

17.20
17.21	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	4,388,000
	$
	4,434,000
	
17.22 	$45,000 the first year and $91,000 the second 
17.23 	year are to maintain the current level of service 
17.24 	delivery.

17.25 	Sec. 5. TRANSFERS.
 17.26 	(a) $4,000,000 in fiscal year 2026 is transferred from the general fund to the agricultural 
17.27 	emergency account established under Minnesota Statutes, section 17.041.
17.28 	(b) Of the amount transferred to the agricultural emergency account under Minnesota 
17.29 	Statutes, section 17.041, up to $2,000,000 may be used for the following purposes:
17.30 	(1) to test milk, milk products, poultry products, and pet food before retail sale for the 
17.31 	presence of avian influenza;
18.1 	(2) to transfer funds to the commissioner of health for biomonitoring for the presence 
18.2 	of avian influenza for agricultural workers, farm workers, and poultry or livestock processing 
18.3 	employees that volunteer to participate; and
18.4 	(3) to transfer funds to the Board of Regents of the University of Minnesota to develop 
18.5 	rapid testing, quantification, and human exposure risk assessment models for avian influenza 
18.6 	in urban wastewater and drinking water treatment processes and public and private wells.
18.7 	Prior to utilizing or transferring money under this paragraph, the commissioner must 
18.8 	communicate the intended usage and the estimated amount of the money to the chairs and 
18.9 	ranking minority members of the house of representatives and senate committees with 
18.10 	jurisdiction over agriculture finance.
18.11 	(c) $153,000 in fiscal year 2026 and $100,000 in fiscal year 2027 are transferred from 
18.12 	the general fund to the pollinator research account established under Minnesota Statutes, 
18.13 	section 18B.051. For fiscal years 2028 through 2031, the commissioner of management and 
18.14 	budget must include a transfer of $100,000 each year from the general fund to the pollinator 
18.15 	research account established under Minnesota Statutes, section 18B.051, when preparing 
18.16 	each forecast from the effective date of this section through the February 2027 forecast, 
18.17 	under Minnesota Statutes, section 16A.103.
18.18 	(d) $186,000 in fiscal year 2026 and $186,000 in fiscal year 2027 are transferred from 
18.19 	the general fund to the Minnesota grown account and may be used as grants for Minnesota 
18.20 	grown promotion under Minnesota Statutes, section 17.102. Notwithstanding Minnesota 
18.21 	Statutes, section 16A.28, the appropriations encumbered under contract on or before June 
18.22 	30, 2027, for Minnesota grown grants in this paragraph are available until June 30, 2029. 
18.23 	For fiscal years 2028 through 2031, the commissioner of management and budget must 
18.24 	include a transfer of $186,000 each year from the general fund to the Minnesota grown 
18.25 	account established under Minnesota Statutes, section 17.102, subdivision 4, when preparing 
18.26 	each forecast from the effective date of this section through the February 2027 forecast, 
18.27 	under Minnesota Statutes, section 16A.103.
18.28 	(e) $10,699,000 in fiscal year 2026 and $10,352,000 in fiscal year 2027 are transferred 
18.29 	from the general fund to the agriculture research, education, extension, and technology 
18.30 	transfer account under Minnesota Statutes, section 41A.14, subdivision 3, and the 
18.31 	commissioner shall transfer funds each year to the Board of Regents of the University of 
18.32 	Minnesota for purposes of Minnesota Statutes, section 41A.14, subdivision 1, clauses (1) 
18.33 	and (2), and must supplement and not supplant existing sources and levels of funding. The 
19.1 	commissioner may use up to one percent of this transfer for costs incurred to administer 
19.2 	this program.
19.3 	(f) Of the amount transferred for the agriculture research, education, extension, and 
19.4 	technology transfer grant program under Minnesota Statutes, section 41A.14:
19.5 	(1) $600,000 in fiscal year 2026 and $600,000 in fiscal year 2027 are for the Minnesota 
19.6 	Agricultural Experiment Station's agriculture rapid response fund under Minnesota Statutes, 
19.7 	section 41A.14, subdivision 1, clause (2);
19.8 	(2) up to $1,000,000 in fiscal year 2026 and up to $1,000,000 in fiscal year 2027 are for 
19.9 	research on avian influenza, salmonella, and other turkey-related diseases and disease 
19.10 	prevention measures;
19.11 	(3) $2,250,000 in fiscal year 2026 and $2,250,000 in fiscal year 2027 are for grants to 
19.12 	the Minnesota Agricultural Educational Leadership Council to enhance agricultural education 
19.13 	with priority given to Farm Business Management challenge grants. The transfer is 
19.14 	$3,000,000 in fiscal year 2028 and each year thereafter;
19.15 	(4) $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are for potato research;
19.16 	(5) $802,000 in fiscal year 2026 and $802,000 in fiscal year 2027 are to fund the Forever 
19.17 	Green Initiative and protect Minnesota's natural resources while increasing the efficiency, 
19.18 	profitability, and productivity of Minnesota farmers by incorporating perennial and winter 
19.19 	annual crops into existing agricultural practices. By February 1 each year, the dean of the 
19.20 	College of Food, Agricultural, and Natural Resources Sciences must submit a report to the 
19.21 	chairs and ranking minority members of the legislative committees with jurisdiction over 
19.22 	agriculture finance and policy and higher education detailing uses of the money in this 
19.23 	paragraph, including administrative costs, and the achievements this money contributed to;
19.24 	(6) $200,000 in fiscal year 2026 and $200,000 in fiscal year 2027 are for research on 
19.25 	natural stands of wild rice;
19.26 	(7) $250,000 in fiscal year 2026 and $250,000 in fiscal year 2027 are for the cultivated 
19.27 	wild rice forward selection project at the North Central Research and Outreach Center, 
19.28 	including a tenure track or research associate plant scientist; and
19.29 	(8) $347,000 in fiscal year 2026 is for the Board of Regents of the University of 
19.30 	Minnesota for purposes of research on crop contamination and exposure to prions deposited 
19.31 	by animals infected with chronic wasting disease.
19.32 	For fiscal years 2028 through 2031, the commissioner of management and budget must 
19.33 	include a transfer of $11,373,000 each year from the general fund to the agriculture research, 
20.1 	education, extension, and technology transfer account established under Minnesota Statutes, 
20.2 	section 41A.14, subdivision 3, when preparing each forecast from the effective date of this 
20.3 	section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.
20.4 	(g) $250,000 in fiscal year 2026 and $250,000 in fiscal year 2027 are transferred from 
20.5 	the general fund to the Board of Regents of the University of Minnesota to evaluate, 
20.6 	propagate, and maintain the genetic diversity of oilseeds, grains, grasses, legumes, and other 
20.7 	plants, including flax, timothy, barley, rye, triticale, alfalfa, orchard grass, clover, and other 
20.8 	species and varieties that were in commercial distribution and use in Minnesota prior to 
20.9 	1970, excluding wild rice. This money must also be used to protect traditional seeds brought 
20.10 	to Minnesota by immigrant communities. This transfer includes funding for associated 
20.11 	extension and outreach to small farmers and farmers who are Black, Indigenous, and People 
20.12 	of Color. For fiscal years 2028 through 2031, the commissioner of management and budget 
20.13 	must include a transfer of $250,000 each year from the general fund to the Board of Regents 
20.14 	of the University of Minnesota, when preparing each forecast from the effective date of this 
20.15 	section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.
20.16 	(h) $1,425,000 in fiscal year 2026 and $1,425,000 in fiscal year 2027 are transferred 
20.17 	from the general fund to the agricultural and environmental revolving loan account 
20.18 	established under Minnesota Statutes, section 17.117, subdivision 5a, for low-interest loans 
20.19 	under Minnesota Statutes, section 17.117. For fiscal years 2028 through 2031, the 
20.20 	commissioner of management and budget must include a transfer of $1,425,000 each year 
20.21 	from the general fund to the agricultural and environmental revolving loan account 
20.22 	established under Minnesota Statutes, section 17.117, subdivision 5a, when preparing each 
20.23 	forecast from the effective date of this section through the February 2027 forecast, under 
20.24 	Minnesota Statutes, section 16A.103.

20.25 	Sec. 6. CANCELLATIONS.
 20.26 	(a) $3,000,000 of the appropriation in fiscal year 2024 from the general fund for green 
20.27 	fertilizer production facilities under Laws 2023, chapter 60, article 10, section 4, is canceled 
20.28 	to the general fund by June 30, 2025.
20.29 	(b) $500,000 of the fiscal year 2025 general fund appropriation for the agricultural 
20.30 	growth, research, and innovation program under Minnesota Statutes, section 41A.12, that 
20.31 	was allocated for Dairy Assistance, Investment, Relief Initiative (DAIRI) grants under Laws 
20.32 	2024, chapter 126, article 1, section 1, subdivision 4, paragraph (d), clause (6), is canceled 
20.33 	to the general fund by June 30, 2025.

20.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.1 	Sec. 7. Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended by Laws 
21.2 	2024, chapter 126, article 1, section 1, subdivision 4, is amended to read:

21.3
21.4	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		34,034,000
		38,159,000
	
21.5 	(a) $10,702,000 the first year and $10,702,000 
21.6 	the second year are for the agriculture 
21.7 	research, education, extension, and technology 
21.8 	transfer program under Minnesota Statutes, 
21.9 	section 41A.14. Except as provided below, 
21.10 	the appropriation each year is for transfer to 
21.11 	the agriculture research, education, extension, 
21.12 	and technology transfer account under 
21.13 	Minnesota Statutes, section 41A.14, 
21.14 	subdivision 3, and the commissioner shall 
21.15 	transfer funds each year to the Board of 
21.16 	Regents of the University of Minnesota for 
21.17 	purposes of Minnesota Statutes, section 
21.18 	41A.14. To the extent practicable, money 
21.19 	expended under Minnesota Statutes, section 
21.20 	41A.14, subdivision 1, clauses (1) and (2), 
21.21 	must supplement and not supplant existing 
21.22 	sources and levels of funding. The 
21.23 	commissioner may use up to one percent of 
21.24 	this appropriation for costs incurred to 
21.25 	administer the program.
21.26 	Of the amount appropriated for the agriculture 
21.27 	research, education, extension, and technology 
21.28 	transfer grant program under Minnesota 
21.29 	Statutes, section 41A.14:
21.30 	(1) $600,000 the first year and $600,000 the 
21.31 	second year are for the Minnesota Agricultural 
21.32 	Experiment Station's agriculture rapid 
21.33 	response fund under Minnesota Statutes, 
21.34 	section 41A.14, subdivision 1, clause (2);
22.1 	(2) up to $1,000,000 the first year and up to 
22.2 	$1,000,000 the second year are for research 
22.3 	on avian influenza, salmonella, and other 
22.4 	turkey-related diseases and disease prevention 
22.5 	measures;
22.6 	(3) $2,250,000 the first year and $2,250,000 
22.7 	the second year are for grants to the Minnesota 
22.8 	Agricultural Education Leadership Council to 
22.9 	enhance agricultural education with priority 
22.10 	given to Farm Business Management 
22.11 	challenge grants;
22.12 	(4) $450,000 the first year is for the cultivated 
22.13 	wild rice breeding project at the North Central 
22.14 	Research and Outreach Center to include a 
22.15 	tenure track/research associate plant breeder;
22.16 	(5) $350,000 the first year and $350,000 the 
22.17 	second year are for potato breeding;
22.18 	(6) $802,000 the first year and $802,000 the 
22.19 	second year are to fund the Forever Green 
22.20 	Initiative and protect the state's natural 
22.21 	resources while increasing the efficiency, 
22.22 	profitability, and productivity of Minnesota 
22.23 	farmers by incorporating perennial and 
22.24 	winter-annual crops into existing agricultural 
22.25 	practices. The base for the allocation under 
22.26 	this clause is $802,000 in fiscal year 2026 and 
22.27 	each year thereafter. By February 1 each year, 
22.28 	the dean of the College of Food, Agricultural 
22.29 	and Natural Resource Sciences must submit 
22.30 	a report to the chairs and ranking minority 
22.31 	members of the legislative committees with 
22.32 	jurisdiction over agriculture finance and policy 
22.33 	and higher education detailing uses of the 
22.34 	funds in this paragraph, including 
23.1 	administrative costs, and the achievements 
23.2 	these funds contributed to;
23.3 	(7) $350,000 each year is for farm-scale winter 
23.4 	greenhouse research and development 
23.5 	coordinated by University of Minnesota 
23.6 	Extension Regional Sustainable Development 
23.7 	Partnerships. The allocation in this clause is 
23.8 	onetime;
23.9 	(8) $200,000 the second year is for research 
23.10 	on natural stands of wild rice; and
23.11 	(9) $250,000 the second year is for the 
23.12 	cultivated wild rice forward selection project 
23.13 	at the North Central Research and Outreach 
23.14 	Center, including a tenure track or research 
23.15 	associate plant scientist.
23.16 	(b) The base for the agriculture research, 
23.17 	education, extension, and technology transfer 
23.18 	program is $10,352,000 in fiscal year 2026 
23.19 	and $10,352,000 in fiscal year 2027.
23.20 	(c) $23,332,000 the first year is for the 
23.21 	agricultural growth, research, and innovation 
23.22 	program under Minnesota Statutes, section 
23.23 	41A.12. Except as provided below, the 
23.24 	commissioner may allocate this appropriation 
23.25 	among the following areas: facilitating the 
23.26 	start-up, modernization, improvement, or 
23.27 	expansion of livestock operations, including 
23.28 	beginning and transitioning livestock 
23.29 	operations with preference given to robotic 
23.30 	dairy-milking equipment; assisting 
23.31 	value-added agricultural businesses to begin 
23.32 	or expand, to access new markets, or to 
23.33 	diversify, including aquaponics systems, with 
23.34 	preference given to hemp fiber processing 
24.1 	equipment; facilitating the start-up, 
24.2 	modernization, or expansion of other 
24.3 	beginning and transitioning farms, including 
24.4 	by providing loans under Minnesota Statutes, 
24.5 	section 41B.056; sustainable agriculture 
24.6 	on-farm research and demonstration; the 
24.7 	development or expansion of food hubs and 
24.8 	other alternative community-based food 
24.9 	distribution systems; enhancing renewable 
24.10 	energy infrastructure and use; crop research, 
24.11 	including basic and applied turf seed research; 
24.12 	Farm Business Management tuition assistance; 
24.13 	and good agricultural practices and good 
24.14 	handling practices certification assistance. The 
24.15 	commissioner may use up to 6.5 percent of 
24.16 	this appropriation for costs incurred to 
24.17 	administer the program.
24.18 	Of the amount appropriated for the agricultural 
24.19 	growth, research, and innovation program 
24.20 	under Minnesota Statutes, section 41A.12:
24.21 	(1) $1,000,000 the first year is for distribution 
24.22 	in equal amounts to each of the state's county 
24.23 	fairs to preserve and promote Minnesota 
24.24 	agriculture;
24.25 	(2) $5,750,000 the first year is for incentive 
24.26 	payments under Minnesota Statutes, sections 
24.27 	41A.16, 41A.17, 41A.18, and 41A.20. 
24.28 	Notwithstanding Minnesota Statutes, section 
24.29 	16A.28, the first year appropriation is 
24.30 	available until June 30, 2025. If this 
24.31 	appropriation exceeds the total amount for 
24.32 	which all producers are eligible in a fiscal 
24.33 	year, the balance of the appropriation is 
24.34 	available for other purposes under this 
24.35 	paragraph;
25.1 	(3) $3,375,000 the first year is for grants that 
25.2 	enable retail petroleum dispensers, fuel storage 
25.3 	tanks, and other equipment to dispense 
25.4 	biofuels to the public in accordance with the 
25.5 	biofuel replacement goals established under 
25.6 	Minnesota Statutes, section 239.7911. A retail 
25.7 	petroleum dispenser selling petroleum for use 
25.8 	in spark ignition engines for vehicle model 
25.9 	years after 2000 is eligible for grant money 
25.10 	under this clause if the retail petroleum 
25.11 	dispenser has no more than 10 retail petroleum 
25.12 	dispensing sites and each site is located in 
25.13 	Minnesota. The grant money must be used to 
25.14 	replace or upgrade equipment that does not 
25.15 	have the ability to be certified for E25. A grant 
25.16 	award must not exceed 65 percent of the cost 
25.17 	of the appropriate technology. A grant award 
25.18 	must not exceed $200,000 per station. The 
25.19 	commissioner must cooperate with biofuel 
25.20 	stakeholders in the implementation of the grant 
25.21 	program. The commissioner, in cooperation 
25.22 	with any economic or community development 
25.23 	financial institution and any other entity with 
25.24 	which the commissioner contracts, must 
25.25 	submit a report on the biofuels infrastructure 
25.26 	financial assistance program by January 15 of 
25.27 	each year to the chairs and ranking minority 
25.28 	members of the legislative committees and 
25.29 	divisions with jurisdiction over agriculture 
25.30 	policy and finance. The annual report must 
25.31 	include but not be limited to a summary of the 
25.32 	following metrics: (i) the number and types 
25.33 	of projects financed; (ii) the amount of dollars 
25.34 	leveraged or matched per project; (iii) the 
25.35 	geographic distribution of financed projects; 
25.36 	(iv) any market expansion associated with 
26.1 	upgraded infrastructure; (v) the demographics 
26.2 	of the areas served; (vi) the costs of the 
26.3 	program; and (vii) the number of grants to 
26.4 	minority-owned or female-owned businesses;
26.5 	(4) $1,250,000 the first year is for grants to 
26.6 	facilitate the start-up, modernization, or 
26.7 	expansion of meat, poultry, egg, and milk 
26.8 	processing facilities. A grant award under this 
26.9 	clause must not exceed $200,000. Any 
26.10 	unencumbered balance at the end of the second 
26.11 	year does not cancel until June 30, 2026, and 
26.12 	may be used for other purposes under this 
26.13 	paragraph;
26.14 	(5) $1,150,000 the first year is for providing 
26.15 	more fruits, vegetables, meat, poultry, grain, 
26.16 	and dairy for children in school and early 
26.17 	childhood education settings, including, at the 
26.18 	commissioner's discretion, providing grants 
26.19 	to reimburse schools and early childhood 
26.20 	education and child care providers for 
26.21 	purchasing equipment and agricultural 
26.22 	products. Organizations must participate in 
26.23 	the National School Lunch Program or the 
26.24 	Child and Adult Care Food Program to be 
26.25 	eligible. Of the amount appropriated, $150,000 
26.26 	is for a statewide coordinator of 
26.27 	farm-to-institution strategy and programming. 
26.28 	The coordinator must consult with relevant 
26.29 	stakeholders and provide technical assistance 
26.30 	and training for participating farmers and 
26.31 	eligible grant recipients;
26.32 	(6) $2,000,000 the first year is for urban youth 
26.33 	agricultural education or urban agriculture 
26.34 	community development;
27.1 	(7) $1,000,000 the first year is for the good 
27.2 	food access program under Minnesota 
27.3 	Statutes, section 17.1017; and
27.4 	(8) $225,000 the first year is to provide grants 
27.5 	to secondary career and technical education 
27.6 	programs for the purpose of offering 
27.7 	instruction in meat cutting and butchery. 
27.8 	Notwithstanding Minnesota Statutes, section 
27.9 	16B.98, subdivision 14, the commissioner may 
27.10 	use up to 6.5 percent of this appropriation for 
27.11 	administrative costs. This is a onetime 
27.12 	appropriation. Grants may be used for costs, 
27.13 	including but not limited to:
27.14 	(i) equipment required for a meat cutting 
27.15 	program;
27.16 	(ii) facility renovation to accommodate meat 
27.17 	cutting; and
27.18 	(iii) training faculty to teach the fundamentals 
27.19 	of meat processing.
27.20 	A grant recipient may be awarded a grant of 
27.21 	up to $75,000 and may use up to ten percent 
27.22 	of the grant for faculty training. Priority may 
27.23 	be given to applicants who are coordinating 
27.24 	with meat cutting and butchery programs at 
27.25 	Minnesota State Colleges and Universities 
27.26 	institutions or with local industry partners.
27.27 	By January 15, 2025, the commissioner must 
27.28 	report to the chairs and ranking minority 
27.29 	members of the legislative committees with 
27.30 	jurisdiction over agriculture finance and 
27.31 	education finance by listing the grants made 
27.32 	under this paragraph by county and noting the 
27.33 	number and amount of grant requests not 
27.34 	fulfilled. The report may include additional 
28.1 	information as determined by the 
28.2 	commissioner, including but not limited to 
28.3 	information regarding the outcomes produced 
28.4 	by these grants. If additional grants are 
28.5 	awarded under this paragraph that were not 
28.6 	covered in the report due by January 15, 2025, 
28.7 	the commissioner must submit an additional 
28.8 	report to the chairs and ranking minority 
28.9 	members of the legislative committees with 
28.10 	jurisdiction over agriculture finance and 
28.11 	education finance regarding all grants issued 
28.12 	under this paragraph by November 1, 2025.
28.13 	Notwithstanding Minnesota Statutes, section 
28.14 	16A.28, any unencumbered balance does not 
28.15 	cancel at the end of the first year and is 
28.16 	available for the second year, and 
28.17 	appropriations encumbered under contract on 
28.18 	or before June 30, 2025, for agricultural 
28.19 	growth, research, and innovation grants are 
28.20 	available until June 30, 2028.
28.21 	(d) $27,457,000 the second year is for the 
28.22 	agricultural growth, research, and innovation 
28.23 	program under Minnesota Statutes, section 
28.24 	41A.12. Except as provided below, the 
28.25 	commissioner may allocate this appropriation 
28.26 	among the following areas: facilitating the 
28.27 	start-up, modernization, improvement, or 
28.28 	expansion of livestock operations, including 
28.29 	beginning and transitioning livestock 
28.30 	operations with preference given to robotic 
28.31 	dairy-milking equipment; assisting 
28.32 	value-added agricultural businesses to begin 
28.33 	or expand, to access new markets, or to 
28.34 	diversify, including aquaponics systems, with 
28.35 	preference given to hemp fiber processing 
29.1 	equipment; facilitating the start-up, 
29.2 	modernization, or expansion of other 
29.3 	beginning and transitioning farms, including 
29.4 	by providing loans under Minnesota Statutes, 
29.5 	section 41B.056; sustainable agriculture 
29.6 	on-farm research and demonstration; the 
29.7 	development or expansion of food hubs and 
29.8 	other alternative community-based food 
29.9 	distribution systems; enhancing renewable 
29.10 	energy infrastructure and use; crop research, 
29.11 	including basic and applied turf seed research; 
29.12 	Farm Business Management tuition assistance; 
29.13 	and good agricultural practices and good 
29.14 	handling practices certification assistance. The 
29.15 	commissioner may use up to 6.5 percent of 
29.16 	this appropriation for costs incurred to 
29.17 	administer the program.
29.18 	Of the amount appropriated for the agricultural 
29.19 	growth, research, and innovation program 
29.20 	under Minnesota Statutes, section 41A.12:
29.21 	(1) $1,000,000 the second year is for 
29.22 	distribution in equal amounts to each of the 
29.23 	state's county fairs to preserve and promote 
29.24 	Minnesota agriculture;
29.25 	(2) $5,750,000 the second year is for incentive 
29.26 	payments under Minnesota Statutes, sections 
29.27 	41A.16, 41A.17, 41A.18, and 41A.20. 
29.28 	Notwithstanding Minnesota Statutes, section 
29.29 	16A.28, this appropriation is available until 
29.30 	June 30, 2027. If this appropriation exceeds 
29.31 	the total amount for which all producers are 
29.32 	eligible in a fiscal year, the balance of the 
29.33 	appropriation is available for other purposes 
29.34 	under this paragraph. The base under this 
30.1 	clause is $3,000,000 in fiscal year 2026 and 
30.2 	each year thereafter;
30.3 	(3) $3,375,000 the second year is for grants 
30.4 	that enable retail petroleum dispensers, fuel 
30.5 	storage tanks, and other equipment to dispense 
30.6 	biofuels to the public in accordance with the 
30.7 	biofuel replacement goals established under 
30.8 	Minnesota Statutes, section 239.7911. A retail 
30.9 	petroleum dispenser selling petroleum for use 
30.10 	in spark ignition engines for vehicle model 
30.11 	years after 2000 is eligible for grant money 
30.12 	under this clause if the retail petroleum 
30.13 	dispenser has no more than ten retail 
30.14 	petroleum dispensing sites and each site is 
30.15 	located in Minnesota. The grant money must 
30.16 	be used to replace or upgrade equipment that 
30.17 	does not have the ability to be certified for 
30.18 	E25. A grant award must not exceed 65 
30.19 	percent of the cost of the appropriate 
30.20 	technology. A grant award must not exceed 
30.21 	$200,000 per station. The commissioner must 
30.22 	cooperate with biofuel stakeholders in the 
30.23 	implementation of the grant program. The 
30.24 	commissioner, in cooperation with any 
30.25 	economic or community development 
30.26 	financial institution and any other entity with 
30.27 	which the commissioner contracts, must 
30.28 	submit a report on the biofuels infrastructure 
30.29 	financial assistance program by January 15 of 
30.30 	each year to the chairs and ranking minority 
30.31 	members of the legislative committees and 
30.32 	divisions with jurisdiction over agriculture 
30.33 	policy and finance. The annual report must 
30.34 	include but not be limited to a summary of the 
30.35 	following metrics: (i) the number and types 
30.36 	of projects financed; (ii) the amount of money 
31.1 	leveraged or matched per project; (iii) the 
31.2 	geographic distribution of financed projects; 
31.3 	(iv) any market expansion associated with 
31.4 	upgraded infrastructure; (v) the demographics 
31.5 	of the areas served; (vi) the costs of the 
31.6 	program; and (vii) the number of grants to 
31.7 	minority-owned or female-owned businesses. 
31.8 	The base under this clause is $3,000,000 for 
31.9 	fiscal year 2026 and each year thereafter;
31.10 	(4) $1,250,000 the second year is for grants 
31.11 	to facilitate the start-up, modernization, or 
31.12 	expansion of meat, poultry, egg, and milk 
31.13 	processing facilities. A grant award under this 
31.14 	clause must not exceed $200,000. Any 
31.15 	unencumbered balance at the end of the second 
31.16 	year does not cancel until June 30, 2027, and 
31.17 	may be used for other purposes under this 
31.18 	paragraph. The base under this clause is 
31.19 	$250,000 in fiscal year 2026 and each year 
31.20 	thereafter;
31.21 	(5) $1,275,000 the second year is for providing 
31.22 	more fruits, vegetables, meat, poultry, grain, 
31.23 	and dairy for children in school and early 
31.24 	childhood education settings, including, at the 
31.25 	commissioner's discretion, providing grants 
31.26 	to reimburse schools and early childhood 
31.27 	education and child care providers for 
31.28 	purchasing equipment and agricultural 
31.29 	products. Organizations must participate in 
31.30 	the National School Lunch Program or the 
31.31 	Child and Adult Care Food Program to be 
31.32 	eligible. Of the amount appropriated, $150,000 
31.33 	is for a statewide coordinator of 
31.34 	farm-to-institution strategy and programming. 
31.35 	The coordinator must consult with relevant 
32.1 	stakeholders and provide technical assistance 
32.2 	and training for participating farmers and 
32.3 	eligible grant recipients. The base under this 
32.4 	clause is $1,294,000 in fiscal year 2026 and 
32.5 	each year thereafter;
32.6 	(6) $4,000,000 the second year is for Dairy 
32.7 	Assistance, Investment, Relief Initiative 
32.8 	(DAIRI) grants and other forms of financial 
32.9 	assistance to Minnesota dairy farms that enroll 
32.10 	in coverage under a federal dairy risk 
32.11 	protection program and produced no more 
32.12 	than 16,000,000 pounds of milk in 2022. The 
32.13 	commissioner must make DAIRI payments 
32.14 	based on the amount of milk produced in 
32.15 	2022, up to 5,000,000 pounds per participating 
32.16 	farm, at a rate determined by the commissioner 
32.17 	within the limits of available funding. Any 
32.18 	unencumbered balance on June 30, 2026, may 
32.19 	be used for other purposes under this 
32.20 	paragraph. The allocation in this clause is 
32.21 	onetime;
32.22 	(7) $2,000,000 the second year is for urban 
32.23 	youth agricultural education or urban 
32.24 	agriculture community development;
32.25 	(8) $1,000,000 the second year is for the good 
32.26 	food access program under Minnesota 
32.27 	Statutes, section 17.1017; and
32.28 	(9) $225,000 the second year is for the 
32.29 	protecting livestock grant program for 
32.30 	producers to support the installation of 
32.31 	measures to prevent the transmission of avian 
32.32 	influenza. For the appropriation in this 
32.33 	paragraph, a grant applicant must document 
32.34 	a cost-share of 20 percent. An applicant's 
32.35 	cost-share amount may be reduced up to 
33.1 	$2,000 to cover time and labor costs. 
33.2 	Notwithstanding Minnesota Statutes, section 
33.3 	16B.98, subdivision 14, the commissioner may 
33.4 	use up to 6.5 percent of this appropriation for 
33.5 	administrative costs. This appropriation is 
33.6 	available until June 30, 2027. This is a onetime 
33.7 	appropriation.
33.8 	(e) Notwithstanding Minnesota Statutes, 
33.9 	section 16A.28, this the appropriation in 
33.10 	paragraph (d) does not cancel at the end of the 
33.11 	second year and is available until June 30, 
33.12 	2027. Appropriations encumbered under 
33.13 	contract on or before June 30, 2027, for 
33.14 	agricultural growth, research, and innovation 
33.15 	grants are available until June 30, 2030.
33.16 	(e) (f) The base for the agricultural growth, 
33.17 	research, and innovation program is 
33.18 	$17,582,000 in fiscal year 2026 and each year 
33.19 	thereafter and includes $200,000 each year for 
33.20 	cooperative development grants.

33.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.22 	ARTICLE 2
33.23 	AGRICULTURE STATUTORY CHANGES

33.24 	Section 1. Minnesota Statutes 2024, section 17.133, subdivision 2, is amended to read:
33.25 		Subd. 2.Grants. The commissioner may award farm down payment assistance grants 
33.26 	of up to $15,000 $20,000 per eligible farmer. Each award must be matched with at least 
33.27 	$8,000 of other funding. Grants under this subdivision may be awarded by a randomized 
33.28 	selection process after applications are collected over a period of no less than 30 calendar 
33.29 	days. An eligible farmer must commit to own and farm the land purchased with assistance 
33.30 	provided under this section for at least five years. For each year that a grant recipient does 
33.31 	not own and farm the land during the five-year period, the grant recipient must pay a penalty 
33.32 	to the commissioner equal to 20 percent of the grant amount.

34.1 	Sec. 2. Minnesota Statutes 2024, section 18B.01, subdivision 1d, is amended to read:
34.2 		Subd. 1d.Application or use of a pesticide. "Application or use of a pesticide" includes:
34.3 	(1) the dispersal of a pesticide on, in, at, or directed toward a target site; and
34.4 	(2) preapplication activities that involve the mixing and loading of a restricted use 
34.5 	pesticide; and
34.6 	(3) (2) other restricted use pesticide-related activities, including but not limited to 
34.7 	transporting or storing pesticide containers that have been opened; mixing; loading; cleaning 
34.8 	equipment; and disposing of excess pesticides, spray mix, equipment wash waters, pesticide 
34.9 	containers, and other materials that contain pesticide.

34.10 	Sec. 3. Minnesota Statutes 2024, section 18B.01, is amended by adding a subdivision to 
34.11 	read:
34.12 		Subd. 10c.Handler. "Handler" means an individual who meets all the requirements for 
34.13 	noncertified applicator specified in Code of Federal Regulations, title 40, section 171.201, 
34.14 	and engages in preapplication activities that involve the mixing, loading, and transporting 
34.15 	of a restricted use pesticide under the supervision of a licensed pesticide applicator.

34.16 	Sec. 4. Minnesota Statutes 2024, section 18B.30, is amended to read:
34.17 	18B.30 PESTICIDE USE LICENSE REQUIREMENT; INTERNET SALES 
34.18 	PROHIBITED; RESTRICTED USE PESTICIDES.
34.19 	(a) A person may not use a restricted use pesticide without a license or certification 
34.20 	required under sections 18B.29 to 18B.35 and the use may only be done under conditions 
34.21 	prescribed by the commissioner, except that a handler may engage in preapplication activities 
34.22 	that involve the mixing, loading, and transporting of a restricted use pesticide under the 
34.23 	supervision of a licensed pesticide applicator.
34.24 	(b) A person shall not sell any pesticide labeled for restricted use over an Internet website 
34.25 	to a Minnesota resident who is not a licensed or certified pesticide applicator. A person 
34.26 	selling a pesticide labeled for restricted use over an Internet website to a Minnesota resident 
34.27 	must verify that the purchaser is a licensed or certified pesticide applicator under sections 
34.28 	18B.29 to 18B.35.

34.29 	Sec. 5. [18C.113] BIOFERTILIZER INNOVATION AND EFFICIENCY PROGRAM.
34.30 		Subdivision 1.Program established. In consultation with the commissioner of natural 
34.31 	resources and soil and water conservation districts in Minnesota, the commissioner of 
35.1 	agriculture must develop and administer a biofertilizer innovation and efficiency program 
35.2 	to address water quality by incentivizing Minnesota farmers to improve nitrogen management 
35.3 	and incorporate innovative technologies into the farmers' crop nutrient management plans. 
35.4 	The commissioner must determine which products qualify for the program, including soil 
35.5 	amendments, fertilizers with nitrogen-fixing properties, biological sources of nitrogen, and 
35.6 	other biofertilizers.
35.7 		Subd. 2.Payments to qualified farmers. (a) In consultation with farmers and the 
35.8 	fertilizer industry, the commissioner must establish a per-acre payment rate, not less than 
35.9 	$5 per acre, for payments provided to a qualifying farmer. The program must provide an 
35.10 	annual per-acre incentive payment to a qualifying farmer who verifies through documentation 
35.11 	that the farmer has reduced commercial nitrogen fertilizer rates by using a qualifying product 
35.12 	in the farmer's crop nutrient management plans by the lesser of:
35.13 	(1) 15 percent; or
35.14 	(2) 30 pounds per acre.
35.15 	(b) The Department of Agriculture must annually review and may adjust the per-acre 
35.16 	payment rate based on inflation and emerging fertilizer technology.
35.17 		Subd. 3.Qualifications. To qualify for the biofertilizer water preservation program, a 
35.18 	farmer must:
35.19 	(1) be a Minnesota resident operating farmland located in Minnesota;
35.20 	(2) submit documentation to the commissioner, including a crop nutrient management 
35.21 	plan that will reduce the use of commercial nitrogen fertilizers at the reduction rate required 
35.22 	under subdivision 2 by using a qualifying product determined by the commissioner under 
35.23 	subdivision 1; and
35.24 	(3) enroll a minimum of 40 eligible acres.
35.25 		Subd. 4.Review required. Every two years, the commissioner must review:
35.26 	(1) the program's required minimum commercial nitrogen fertilizer reduction rate under 
35.27 	subdivision 2 and determine whether an increase in the minimum reduction rate is necessary; 
35.28 	and
35.29 	(2) additional qualifying products that may be used by farmers in the program. When 
35.30 	making this determination, the commissioner must consider newly available technologies 
35.31 	and products capable of reducing commercial nitrogen fertilizer applications.
36.1 		Subd. 5.Rulemaking required. The commissioner must adopt rules using rulemaking 
36.2 	authority under section 18C.121, subdivision 1, to implement this section.
36.3 		Subd. 6.Program study. The commissioner must conduct an evaluation of the practice 
36.4 	performance and economic performance of the biofertilizer innovation and efficiency 
36.5 	program. The evaluation must look at environmental outcomes, include a cost-benefit 
36.6 	analysis, and be submitted to the chairs and ranking minority members of the legislative 
36.7 	committees and divisions with jurisdiction over agriculture policy and finance by June 1, 
36.8 	2027. The commissioner may contract with an independent third party to conduct the 
36.9 	evaluation.

36.10 	ARTICLE 3
36.11 	BROADBAND

36.12	Section 1. BROADBAND DEVELOPMENT APPROPRIATIONS.
 	
36.13 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
36.14 	and for the purposes specified in this article. The appropriations are from the general fund, 
36.15 	or another named fund, and are available for the fiscal years indicated for each purpose. 
36.16 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
36.17 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
36.18 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
36.19 	is fiscal years 2026 and 2027.

36.20				APPROPRIATIONS
	
36.21				Available for the Year
	
36.22				Ending June 30
	
36.23					2026
		2027

36.24
36.25	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	1,001,000
	$
	1,001,000
	
36.26 	$1,001,000 each year is for the Office of 
36.27 	Broadband Development.

	ARTICLE 1	APPROPRIATIONS........	Page.Ln 1.11	
	ARTICLE 2	AGRICULTURE STATUTORY CHANGES........	Page.Ln 33.22	
	ARTICLE 3	BROADBAND........	Page.Ln 36.10