HF 4908

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2024 12:18pm

A bill for an act
relating to agriculture; defining limited-resource farmer; modifying reporting
requirements for farm down payment assistance grants; modifying eligibility and
priority for a beginning farmer tax credit and certain grants; modifying the definition
of social equity applicants for purposes of cannabis licensing; amending Minnesota
Statutes 2022, section 17.133, subdivision 1; Minnesota Statutes 2023 Supplement,
sections 17.055, subdivision 3; 17.133, subdivision 3; 41B.0391, subdivisions 1,
2, 4, 6; 342.17; Laws 2023, chapter 43, article 1, section 2, subdivision 5.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended
to read:

Subd. 3.

Beginning farmer equipment and infrastructure grants.

(a) The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are deleted text begin emerging deleted text end new text begin limited-resource new text end farmers
as defined in new text begin section 17.133, new text end subdivision 1. Grant money may be used for equipment and
infrastructure development.

(b) The commissioner shall develop competitive eligibility criteria and may allocate
grants on a needs basis.

(c) Grant projects may continue for up to two years.

Sec. 2.

Minnesota Statutes 2022, 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; and

(3) has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland.

(c) "Farm down payment" means an initial, partial payment required by a lender or seller
to purchase farmland.

new text begin (d) "Limited land access" means farming under a lease or other rental arrangement of
no more than three years in duration when the person leasing or renting the land is not
related to the lessee or renter by blood or marriage.
new text end

new text begin (e) "Limited market access" means the majority of a farmer's annual farm product sales
are direct sales to the consumer.
new text end

new text begin (f) "Limited-resource farmer" means a farmer experiencing limited land access or limited
market access.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 17.133, subdivision 3, is amended
to read:

Subd. 3.

Report to legislature.

No later than December 1, 2023, and annually thereafter,
the commissioner must provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over agriculture and rural development, in
compliance with sections 3.195 and 3.197, on the farm down payment assistance grants
under this section. The report must include:

(1) background information on beginning farmers in Minnesota and any other information
that the commissioner and authority find relevant to evaluating the effect of the grants on
increasing opportunities for and the number of beginning farmers;

(2) the number and amount of grants;

(3) the geographic distribution of grants by county;

(4) the number of grant recipients who are emerging farmers new text begin and the number of grant
recipients who are limited-resource farmers new text end ;

(5) disaggregated data regarding the gender, race, and ethnicity of grant recipients;

(6) the number of farmers who cease to own land and are subject to payment of a penalty,
along with the reasons for the land ownership cessation; and

(7) the number and amount of grant applications that exceeded the allocation available
in each year.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.

(c) "Beginning farmer" means an individual who:

(1) is a resident of Minnesota;

(2) is seeking entry, or has entered within the last ten years, into farming;

(3) intends to farm land located within the state borders of Minnesota;

(4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
family member of the owner of the agricultural assets from whom the beginning farmer is
seeking to purchase or rent agricultural assets;

(5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
family member of a partner, member, shareholder, or trustee of the owner of agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
and

(6) meets the following eligibility requirements as determined by the authority:

(i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);

(ii) provides the majority of the day-to-day physical labor and management of the farm;

(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;

(iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;

(v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

(vi) is enrolled in or has completed within ten years of their first year of farming a
financial management program approved by the authority or the commissioner of agriculture;

(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
requirements within the three-year certification period, in which case the beginning farmer
is no longer eligible for credits under this section; and

(viii) has other qualifications as specified by the authority.

The authority may waive the requirement in item (vi) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.

(d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055,
subdivision 1.

(e) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).

(f) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.

(g) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

new text begin (h) "Limited-resource farmer" has the meaning given in section 17.133, subdivision 1.
new text end

deleted text begin (h) deleted text end new text begin (i) new text end "Owner of agricultural assets" means an individual, trust, or pass-through entity
that is the owner in fee of agricultural land or has legal title to any other agricultural asset.
Owner of agricultural assets does not mean an equipment dealer, livestock dealer defined
in section 17A.03, subdivision 7, or comparable entity that is engaged in the business of
selling agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.

deleted text begin (i) deleted text end new text begin (j) new text end "Resident" has the meaning given in section 290.01, subdivision 7.

deleted text begin (j) deleted text end new text begin (k) new text end "Share rent agreement" means a rental agreement in which the principal
consideration given to the owner of agricultural assets is a predetermined portion of the
production of farm products produced from the rented agricultural assets and which provides
for sharing production costs or risk of loss, or both.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 2, is amended
to read:

Subd. 2.

Tax credit for owners of agricultural assets.

(a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer in the amount allocated by the authority under
subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:

(1) eight percent of the lesser of the sale price or the fair market value of the agricultural
asset, up to a maximum of $50,000;

(2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement, up to a maximum of $7,000 per year; or

(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority.

(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification and allocation of a credit, in
a form and manner prescribed by the authority.

(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. In determining reasonable cause, the authority
must look at which party was at fault in the termination of the agreement. If the authority
determines the owner of agricultural assets did not have reasonable cause, the owner of
agricultural assets must repay all credits received as a result of the rental agreement to the
commissioner of revenue. The repayment is additional income tax for the taxable year in
which the authority makes its decision or when a final adjudication under subdivision 5,
paragraph (a), is made, whichever is later.

(e) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.

(f) For purposes of the credit for the sale of agricultural land only, the family member
definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
For a sale to a family member to qualify for the credit, the sales price of the agricultural
land must equal or exceed the assessed value of the land as of the date of the sale. For
purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer
in which the beginning farmer or the beginning farmer's spouse is a family member of:

(1) the owner of the agricultural land; or

(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.

(g) For a sale to deleted text begin an emerging deleted text end new text begin a limited-resource new text end farmer, the credit rate under paragraph
(a), clause (1), is twelve percent rather than eight percent.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 4, is amended
to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);

(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and

(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.

(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, and $4,000,000 for taxable years beginning after December
31, 2023. The authority must allocate credits on a first-come, first-served basis beginning
on January 1 of each year, except that recertifications for the second and third years of
credits under subdivision 2, paragraph (a), clauses (1) and (2), have first priority. Any
amount authorized but not allocated for taxable years ending before January 1, 2023, is
canceled and is not allocated for future taxable years. For taxable years beginning after
December 31, 2022, any amount authorized but not allocated in any taxable year does not
cancel and is added to the allocation for the next taxable year. For each taxable year, 50
percent of newly allocated credits must be allocated to deleted text begin emerging deleted text end new text begin owners of agricultural
assets that sell or rent agricultural assets to beginning farmers who are also limited-resource new text end
farmers. Any portion of a taxable year's newly allocated credits that is reserved for deleted text begin emerging deleted text end new text begin
sales or rentals to limited-resource new text end farmers that is not allocated by September 30 of the
taxable year is available for allocation to other credit allocations beginning on October 1.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 6, is amended
to read:

Subd. 6.

Report to legislature.

(a) No later than February 1, 2024, the Rural Finance
Authority, in consultation with the commissioner of revenue, must provide a report to the
chairs and ranking minority members of the legislative committees having jurisdiction over
agriculture, economic development, rural development, and taxes, in compliance with
sections 3.195 and 3.197, on the beginning farmer tax credits under this section issued in
tax years beginning after December 31, 2017, and before January 1, 2024.

(b) The report must include background information on beginning farmers in Minnesota
and any other information the commissioner and authority find relevant to evaluating the
effect of the credits on increasing opportunities for and the number of beginning farmers.

(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report
must include:

(1) the number and amount of credits issued under each clause;

(2) the geographic distribution of credits issued under each clause;

(3) the type of agricultural assets for which credits were issued under clause (1);

(4) the number and geographic distribution of beginning farmers whose purchase or
rental of assets resulted in credits for the seller or owner of the asset;

(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);

(6) data on the number of beginning farmers by geographic region in calendar years
2017 through 2023, including:

(i) the number of beginning farmers by race and ethnicity, as those terms are applied in
the 2020 United States Census; and

(ii) new text begin the number of beginning farmers who are limited-resource farmers and, new text end to the extent
available, the number of beginning farmers who are emerging farmers; and

(7) the number and amount of credit applications that exceeded the allocation available
in each year.

(d) For credits issued under subdivision 3, the report must include:

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

(3) a listing and description of each approved financial management program for which
credits were issued; and

(4) a description of the approval procedure for financial management programs not on
the list maintained by the authority, as provided in subdivision 3, paragraph (a).

Sec. 8.

Minnesota Statutes 2023 Supplement, section 342.17, is amended to read:

342.17 SOCIAL EQUITY APPLICANTS.

(a) An applicant qualifies as a social equity applicant if the applicant:

(1) was convicted of an offense involving the possession or sale of cannabis or marijuana
prior to May 1, 2023;

(2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
involving the possession or sale of cannabis or marijuana prior to May 1, 2023;

(3) was a dependent of an individual who was convicted of an offense involving the
possession or sale of cannabis or marijuana prior to May 1, 2023;

(4) is a service-disabled veteran, current or former member of the national guard, or any
military veteran or current or former member of the national guard who lost honorable status
due to an offense involving the possession or sale of marijuana;

(5) has been a resident for the last five years of one or more subareas, such as census
tracts or neighborhoods, that experienced a disproportionately large amount of cannabis
enforcement as determined by the study conducted by the office pursuant to section 342.04,
paragraph (b), and reported in the preliminary report, final report, or both;

(6) is deleted text begin an emerging deleted text end new text begin a limited-resource new text end farmer as defined in section deleted text begin 17.055, subdivision
1 deleted text end new text begin 17.133, subdivision 1 new text end ; or

(7) has been a resident for the last five years of one or more census tracts where, as
reported in the most recently completed decennial census published by the United States
Bureau of the Census, either:

(i) the poverty rate was 20 percent or more; or

(ii) the median family income did not exceed 80 percent of statewide median family
income or, if in a metropolitan area, did not exceed the greater of 80 percent of the statewide
median family income or 80 percent of the median family income for that metropolitan
area.

(b) The qualifications described in paragraph (a) apply to each individual applicant or,
in the case of a business entity, every cooperative member or director, manager, and general
partner of the business entity.

Sec. 9.

Laws 2023, chapter 43, article 1, section 2, subdivision 5, is amended to read:

Subd. 5. Administration and Financial Assistance

16,618,000

14,287,000

(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 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.

(b) $350,000 the first year and $350,000 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
2026 and each year thereafter.

(c) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(d) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. This is a
onetime appropriation.

(e) $60,000 the first year and $60,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. This is a onetime appropriation.

(f) $34,000 the first year and $34,000 the
second year are for grants to the Minnesota
State Horticultural Society. This is a onetime
appropriation.

(g) $25,000 the first year and $25,000 the
second year are for grants to the Center for
Rural Policy and Development. This is a
onetime appropriation.

(h) $75,000 the first year and $75,000 the
second year are appropriated from the general
fund to the commissioner of agriculture for
grants to the Minnesota Turf Seed Council for
basic and applied research on: (1) the
improved production of forage and turf seed
related to new and improved varieties; and (2)
native plants, including plant breeding,
nutrient management, pest management,
disease management, yield, and viability. The
Minnesota Turf Seed Council may subcontract
with a qualified third party for some or all of
the basic or applied research. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. The Minnesota Turf Seed Council
must prepare a report outlining the use of the
grant money and related accomplishments. No
later than January 15, 2025, the council must
submit the report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture finance and policy. This is a
onetime appropriation.

(i) $100,000 the first year and $100,000 the
second year are for grants to GreenSeam for
assistance to agriculture-related businesses to
support business retention and development,
business attraction and creation, talent
development and attraction, and regional
branding and promotion. These are onetime
appropriations. No later than December 1,
2024, and December 1, 2025, GreenSeam
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.

(j) $1,950,000 the first year and $1,950,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following purposes:

(1) at least $850,000 each year must be
allocated to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants 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. Second
Harvest Heartland 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 clause 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;

(2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or be
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and

(3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased under the grants must be
acquired from Minnesota processors and
producers.

Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed. The base for this appropriation is
$1,700,000 for fiscal year 2026 and each year
thereafter.

(k) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.

(l) $300,000 the first year and $300,000 the
second year are for grants to The Good Acre
for the Local Emergency Assistance Farmer
Fund (LEAFF) program to compensate
deleted text begin emerging deleted text end new text begin limited-resource new text end farmers for crops
donated to hunger relief organizations in
Minnesota. This is a onetime appropriation.

(m) $750,000 the first year and $750,000 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. The
base for this appropriation is $1,000,000 in
fiscal year 2026 and each year thereafter.

(n) $50,000 the first year is to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2025.

(o) $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.

(p) $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 6.5
percent of the grant awarded under this
paragraph for administration.

(q) $1,000,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041.

(r) $1,084,000 the first year and $500,000 the
second year are to support IT modernization
efforts, including laying the technology
foundations needed for improving customer
interactions with the department for licensing
and payments. This is a onetime appropriation.

(s) $275,000 the first year is for technical
assistance grants to certified community
development financial institutions that
participate in United States Department of
Agriculture loan or grant programs for small
or deleted text begin emerging deleted text end new text begin limited-resource new text end farmers,
including but not limited to the Increasing
Land, Capital, and Market Access Program.
For purposes of this paragraph," deleted text begin emerging deleted text end new text begin
limited-resource new text end farmer" has the meaning
given in Minnesota Statutes, section deleted text begin 17.055,
subdivision 1 deleted text end new text begin 17.133, subdivision 1 new text end . The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. This is a onetime appropriation.

(t) $1,425,000 the first year and $1,425,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117.

(u) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.

(v) The base in fiscal years 2026 and 2027 is
$150,000 each year to coordinate
climate-related activities and services within
the Department of Agriculture and
counterparts in local, state, and federal
agencies and to hire a full-time climate
implementation coordinator. The climate
implementation coordinator must coordinate
efforts seeking federal funding for Minnesota's
agricultural climate adaptation and mitigation
efforts and develop strategic partnerships with
the private sector and nongovernment
organizations.

(w) $1,200,000 the first year and $930,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is $1,085,000 in fiscal year 2026
and $1,085,000 in fiscal year 2027.

(x) $250,000 the first year is for a grant to the
Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with a report submitted by January 3, 2024,
and a final report submitted by December 31,
2024. The reports must include a list of
equipment purchased, including the cost of
each item.

(y) $1,000,000 the first year and $1,000,000
the second year are to award and administer
down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to deleted text begin emerging deleted text end new text begin limited-resource new text end
farmers as defined in Minnesota Statutes,
section deleted text begin 17.055, subdivision 1 deleted text end new text begin 17.133,
subdivision 1 new text end . 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 and
appropriations encumbered under contract by
June 30, 2025, are available until June 30,
2027.

(z) $222,000 the first year and $322,000 the
second year are for meat processing training
and retention incentive grants under section
5. The commissioner may use up to 6.5
percent of this appropriation for costs incurred
to administer the program. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. This is a onetime appropriation.

(aa) $300,000 the first year and $300,000 the
second year are for transfer to the Board of
Regents of the University of Minnesota to
evaluate, propagate, and maintain the genetic
diversity of oilseeds, grains, grasses, legumes,
and other plants including flax, timothy,
barley, rye, triticale, alfalfa, orchard grass,
clover, and other species and varieties that
were in commercial distribution and use in
Minnesota before 1970, excluding wild rice.
This effort must also protect traditional seeds
brought to Minnesota by immigrant
communities. This appropriation includes
funding for associated extension and outreach
to small and Black, Indigenous, and People of
Color (BIPOC) farmers. This is a onetime
appropriation.

(bb) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective July 1, 2024.
new text end