SF 4586
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/19/2026 09:24 a.m.
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A bill for an act
relating to agriculture; modifying farm down payment assistance eligibility;
modifying verification requirements for down payment assistance grant recipients;
modifying a prior appropriation; amending Minnesota Statutes 2025 Supplement,
section 17.133, subdivisions 1, 2; Laws 2025, chapter 34, article 1, section 2,
subdivision 4, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 17.133, subdivision 1, is amended
to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Eligible farmer" means an individual who at the time that the grant is awarded:
(1) is a resident of Minnesota who intends to acquire farmland located within the state
and provide the majority of the day-to-day physical labor and management of the farm;
(2) grosses no more than $250,000 per year from the sale of farm products;
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(3) has earned at least $1,000 in farm income or has evidence of farming experience;
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(4) has a net worth that does not exceed the limit under section 41B.03, subdivision 3,
paragraph (a), clause (2);
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deleted text begin (3)deleted text end new text begin (5)new text end has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland; and
deleted text begin (4)deleted text end new text begin (6)new text end is not, and whose spouse is not, a family member of the owner of the farmland
that the individual intends to acquire. "Family member" has the meaning given in section
267(c)(4) of the Internal Revenue Code.
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(c) "Evidence of farming experience" means that an individual has:
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(1) completed an approved farm business management program;
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(2) a four-year degree in an agriculture-related field; or
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(3) at least three years of experience managing a comparable farm.
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deleted text begin (c)deleted text end new text begin (d)new text end "Farm down payment" means an initial, partial payment required by a lender or
seller to purchase farmland.
deleted text begin (d)deleted text end new text begin (e)new text end "Incubator farm" means a farm where:
(1) individuals are given temporary, exclusive, and affordable access to small parcels
of land, infrastructure, and often training, for the purpose of honing skills and launching a
farm business; and
(2) a majority of the individuals farming the small parcels of land grow industrial hemp,
cannabis, or one or more of the following specialty crops as defined by the United States
Department of Agriculture for purposes of the specialty crop block grant program: fruits
and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture
crops, floriculture crops, and nursery crops.
deleted text begin (e)deleted text end new text begin (f)new text end "Limited land access" means farming without ownership of land and:
(1) the individual or the individual's child rents or leases the land, with the term of each
rental or lease agreement not exceeding three years in duration, from a person who is not
related to the individual or the individual's spouse by blood or marriage; or
(2) the individual rents the land from an incubator farm.
deleted text begin (f)deleted text end new text begin (g)new text end "Limited market access" means the individual has gross sales of no more than
$100,000 per year from the sale of farm products.
new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2026.
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Sec. 2.
Minnesota Statutes 2025 Supplement, section 17.133, subdivision 2, is amended
to read:
Subd. 2.
Grants.
The commissioner may award farm down payment assistance grants
of up to new text begin 30 percent of the purchase price of a farm, with a maximum grant of new text end $20,000 per
eligible farmer. Each award must be matched with at least $8,000 of other funding. Grants
under this subdivision may be awarded by a randomized selection process after applications
are collected over a period of no less than 30 calendar days. An eligible farmer must commit
to own and farm the land purchased with assistance provided under this section for at least
five years. new text begin For the first five years, each recipient must verify gross farm income of at least
$1,000 or demonstrate investment of at least $1,000 in farm business infrastructure,
equipment, perennial crops, or livestock. new text end For each year that a grant recipient does not own
and farm the land during the five-year period, the grant recipient must pay a penalty to the
commissioner equal to 20 percent of the grant amount.
new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2026.
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Sec. 3.
Laws 2025, chapter 34, article 1, section 2, subdivision 4, as amended by Laws
2025, First Special Session chapter 11, section 12, is amended to read:
Subd. 4.Administration and Financial
|
14,179,000 |
11,145,000 |
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(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
must be disbursed no later than July 15 each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.
(b) $300,000 the first year and $300,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D. The base for
this appropriation is $250,000 in fiscal year
2028 and each year thereafter.
(c) $1,250,000 the first year deleted text begin and $1,250,000
the second year aredeleted text end new text begin isnew text end to award and administer
farm down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to eligible applicants with no
more than $100,000 in annual gross farm
product sales and eligible applicants who are
producers of industrial hemp, cannabis, or one
or more of the following specialty crops as
defined by the United States Department of
Agriculture for purposes of the specialty crop
block grant program: fruits and vegetables,
tree nuts, dried fruits, medicinal plants,
culinary herbs and spices, horticulture crops,
floriculture crops, and nursery crops.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance at the end
of the first year does not cancel and is
available in the second year deleted text begin and appropriations
encumbered under contract by June 30, 2027,
are availabledeleted text end new text begin and any unencumbered balance
at the end of the second year does not cancel
and is availablenew text end until June 30, 2029. deleted text begin The base
for this appropriation is $1,000,000 in fiscal
year 2028 and each year thereafter.
deleted text end
(d) $1,000,000 the first year and $1,000,000
the second year are for the purchase of milk
for distribution to Minnesota's food shelves
and other charitable organizations that are
eligible to receive food from the food banks.
Milk purchased with grant money must be
acquired from Minnesota milk processors and
based on low-cost bids. The milk must be
allocated to each Feeding America food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities under
The Emergency Food Assistance Program.
The commissioner may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this paragraph may use up to two
percent for administrative expenses.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance the first
year does not cancel and is available the
second year.
(e) $260,000 the first year and $260,000 the
second year are for a pass-through grant to
Region Five Development Commission to
provide, in collaboration with Farm Business
Management, statewide mental health
counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 7.5
percent of the grant awarded under this
paragraph for administration.
(f) $1,000,000 the first year and $1,000,000
the second year are to expand the Emerging
Farmers Office and provide services to
beginning and emerging farmers to increase
connections between farmers and market
opportunities throughout the state. This
appropriation may be used for grants,
translation services, training programs, or
other purposes in line with the
recommendations of the emerging farmer
working group established under Minnesota
Statutes, section 17.055, subdivision 1.
(g) $137,000 the first year and $203,000 the
second year are to support current services.
(h) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $50,000 the first year and
$50,000 the second year are for the
continuation of the farmland transition
programs and may be used for grants to
farmland access teams to provide technical
assistance to potential beginning farmers.
Farmland access teams must assist existing
farmers and beginning farmers with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.
(i) $3,000,000 the first year is for transfer to
the Public Facilities Authority for a grant to
First District Association to acquire land for
and to design, engineer, construct, equip, and
furnish a wastewater treatment project. This
appropriation is in addition to the
appropriation in Laws 2023, chapter 71, article
1, section 15, subdivision 7. This appropriation
is available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.
deleted text begin (k)deleted text end new text begin (j)new text end $50,000 the first year is to be awarded
as a grant in a competitive bid process to an
entity that is not a for-profit entity to conduct
a study of market and workforce factors that
may contribute to the incorrect marking for
the installation of underground
telecommunications infrastructure that is
located within ten feet of existing underground
utilities or that crosses the existing
underground utilities. The study must include
recommendations to the legislature and be
submitted to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance by June 1, 2027.
deleted text begin (r)deleted text end new text begin (k)new text end $50,000 the first year is to conduct a
study and develop recommendations for
establishing an incentive-based program to
support and encourage agricultural retailers
in promoting 4R nutrient management
practices. The 4R nutrient management
practices include: the right source of nutrients,
at the right rate and right time, in the right
place.
(1) As part of the study, the department must
evaluate strategies for leveraging cost-share
programs, including the feasibility of
coordinating with the Agricultural Water
Quality Certification Program and other efforts
related to the state's Nutrient Reduction
Strategy.
(2) The commissioner must submit a report
detailing its findings, including potential
funding sources and proposal outlines for
funding requests where appropriate. The
commissioner must submit the report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and environment by March 15,
2026.
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(l) $1,250,000 the second year is to award and
administer farm down payment assistance
grants under Minnesota Statutes, section
17.133, with priority given to eligible
applicants with annual gross farm product
sales between $1,000 and $100,000. Of this
appropriation, up to 50 percent may be
awarded by lottery to priority applicants who
possess a purchase agreement as of June 30,
2026. Notwithstanding Minnesota Statutes,
section 16A.28, any unencumbered balance
at the end of the second year does not cancel
and is available until June 30, 2030. The base
for this appropriation is $1,000,000 in fiscal
year 2028 and each year thereafter.
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deleted text begin (s)deleted text end new text begin (m)new text end The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.
new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2026.
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