SF 1575

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/26/2025 03:00 p.m.

A bill for an act
relating to agriculture; establishing the biofertilizer water preservation pilot
program; requiring a report; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin BIOFERTILIZER WATER PRESERVATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, "commercial nitrogen
fertilizer" means a fertilizer with a nitrogen content of no less than 25 percent.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin In consultation with the commissioner of natural resources
and soil and water conservation districts in Minnesota, the commissioner of agriculture
must develop and administer a biofertilizer water preservation pilot program to address
water quality by incentivizing Minnesota farmers to improve nitrogen management and
incorporate innovative technologies into the farmers' crop nutrient management plans. The
commissioner must determine which products qualify for the program, including soil
amendments, fertilizers with nitrogen fixing properties, biological sources of nitrogen, and
other biofertilizers.
new text end

new text begin Subd. 3. new text end

new text begin Payments to qualified farmers. new text end

new text begin (a) In consultation with farmers and the
fertilizer industry, the commissioner may establish a per acre payment rate, not less than
$5 per acre, for payments provided to a qualifying farmer. The program may provide an
annual per acre incentive payment to a qualifying farmer who verifies through documentation
that the farmer has reduced commercial nitrogen fertilizer rates by using a qualifying product
in the farmer's crop nutrient management plans by the lesser of:
new text end

new text begin (1) 15 percent; or
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new text begin (2) 30 pounds per acre.
new text end

new text begin (b) The Department of Agriculture must annually review and may adjust the per acre
payment rate based on inflation and emerging fertilizer technology.
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new text begin Subd. 4. new text end

new text begin Qualifications. new text end

new text begin To qualify for the biofertilizer water preservation program, a
farmer must:
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new text begin (1) be a farmer in the state; and
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new text begin (2) submit documentation to the commissioner, including a crop nutrient management
plan that will reduce the use of commercial nitrogen fertilizers at the reduction rate required
under subdivision 2 by using a qualifying product determined by the commissioner under
subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin (a) By January 8, 2028, the commissioner must report on
the program, including the following information:
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new text begin (1) the program's required minimum commercial nitrogen fertilizer reduction rate under
subdivision 3 and whether an increase in the minimum reduction rate is necessary;
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new text begin (2) additional qualifying products that may be used by farmers in the program. When
making this determination, the commissioner must consider newly available technologies
and products capable of reducing commercial nitrogen fertilizer applications;
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new text begin (3) the use of program funds, including the incentive payment rate made to farmers;
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new text begin (4) the number of farmers and the number of acres in each county that receive an incentive
payment; and
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new text begin (5) an estimate of the amount of commercial nitrogen fertilizer reduced due to the
program.
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new text begin (b) The commissioner must submit the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over agriculture policy and finance.
new text end

new text begin Subd. 6. new text end

new text begin Data privacy. new text end

new text begin Any documentation submitted by a farmer to qualify for the
program under subdivision 4 is classified as nonpublic data, as defined in Minnesota Statutes,
section 13.02, subdivision 9, or private data on individuals, as defined in Minnesota Statutes,
section 13.02, subdivision 12, but the data may be used to complete the report under
subdivision 5, provided that the identity of a particular grantee must not be revealed or made
ascertainable in the report.
new text end

Sec. 2. new text begin APPROPRIATION.
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new text begin $5,000,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of agriculture to establish and administer the biofertilizer water preservation program.
Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance at the end
of fiscal year 2026 does not cancel and is available in fiscal year 2027.
new text end