HF 2785

as introduced - 94th Legislature (2025 - 2026) Posted on 03/24/2025 03:04pm

A bill for an act
relating to agriculture; expanding appropriation for the farm to school and early
care program; modifying eligibility for the farm to school and early care program;
amending Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended.

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

Section 1.

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

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

34,034,000

38,159,000

(a) $10,702,000 the first year and $10,702,000
the second year are for the agriculture
research, education, extension, and technology
transfer program under Minnesota Statutes,
section 41A.14. Except as provided below,
the appropriation each year is for transfer to
the agriculture research, education, extension,
and technology transfer account under
Minnesota Statutes, section 41A.14,
subdivision 3, and the commissioner shall
transfer funds each year to the Board of
Regents of the University of Minnesota for
purposes of Minnesota Statutes, section
41A.14. To the extent practicable, money
expended under Minnesota Statutes, section
41A.14, subdivision 1, clauses (1) and (2),
must supplement and not supplant existing
sources and levels of funding. The
commissioner may use up to one percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agriculture
research, education, extension, and technology
transfer grant program under Minnesota
Statutes, section 41A.14:

(1) $600,000 the first year and $600,000 the
second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);

(2) up to $1,000,000 the first year and up to
$1,000,000 the second year are for research
on avian influenza, salmonella, and other
turkey-related diseases and disease prevention
measures;

(3) $2,250,000 the first year and $2,250,000
the second year are for grants to the Minnesota
Agricultural Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants;

(4) $450,000 the first year is for the cultivated
wild rice breeding project at the North Central
Research and Outreach Center to include a
tenure track/research associate plant breeder;

(5) $350,000 the first year and $350,000 the
second year are for potato breeding;

(6) $802,000 the first year and $802,000 the
second year are to fund the Forever Green
Initiative and protect the state's natural
resources while increasing the efficiency,
profitability, and productivity of Minnesota
farmers by incorporating perennial and
winter-annual crops into existing agricultural
practices. The base for the allocation under
this clause is $802,000 in fiscal year 2026 and
each year thereafter. By February 1 each year,
the dean of the College of Food, Agricultural
and Natural Resource Sciences must submit
a report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and policy
and higher education detailing uses of the
funds in this paragraph, including
administrative costs, and the achievements
these funds contributed to;

(7) $350,000 each year is for farm-scale winter
greenhouse research and development
coordinated by University of Minnesota
Extension Regional Sustainable Development
Partnerships. The allocation in this clause is
onetime;

(8) $200,000 the second year is for research
on natural stands of wild rice; and

(9) $250,000 the second year is for the
cultivated wild rice forward selection project
at the North Central Research and Outreach
Center, including a tenure track or research
associate plant scientist.

(b) The base for the agriculture research,
education, extension, and technology transfer
program is $10,352,000 in fiscal year 2026
and $10,352,000 in fiscal year 2027.

(c) $23,332,000 the first year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program
under Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year is for distribution
in equal amounts to each of the state's county
fairs to preserve and promote Minnesota
agriculture;

(2) $5,750,000 the first year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, the first year appropriation is
available until June 30, 2025. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph;

(3) $3,375,000 the first year is for grants that
enable retail petroleum dispensers, fuel storage
tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $1,250,000 the first year is for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2026, and
may be used for other purposes under this
paragraph;

(5) $1,150,000 the first year is for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients;

(6) $2,000,000 the first year is for urban youth
agricultural education or urban agriculture
community development;

(7) $1,000,000 the first year is for the good
food access program under Minnesota
Statutes, section 17.1017; and

(8) $225,000 the first year is to provide grants
to secondary career and technical education
programs for the purpose of offering
instruction in meat cutting and butchery.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation. Grants may be used for costs,
including but not limited to:

(i) equipment required for a meat cutting
program;

(ii) facility renovation to accommodate meat
cutting; and

(iii) training faculty to teach the fundamentals
of meat processing.

A grant recipient may be awarded a grant of
up to $75,000 and may use up to ten percent
of the grant for faculty training. Priority may
be given to applicants who are coordinating
with meat cutting and butchery programs at
Minnesota State Colleges and Universities
institutions or with local industry partners.

By January 15, 2025, the commissioner must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance by listing the grants made
under this paragraph by county and noting the
number and amount of grant requests not
fulfilled. The report may include additional
information as determined by the
commissioner, including but not limited to
information regarding the outcomes produced
by these grants. If additional grants are
awarded under this paragraph that were not
covered in the report due by January 15, 2025,
the commissioner must submit an additional
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2025.

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, and
appropriations encumbered under contract on
or before June 30, 2025, for agricultural
growth, research, and innovation grants are
available until June 30, 2028.

(d) $27,457,000 the second year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program
under Minnesota Statutes, section 41A.12:

(1) $1,000,000 the second year is for
distribution in equal amounts to each of the
state's county fairs to preserve and promote
Minnesota agriculture;

(2) $5,750,000 the second year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2027. If this appropriation exceeds
the total amount for which all producers are
eligible in a fiscal year, the balance of the
appropriation is available for other purposes
under this paragraph. The base under this
clause is $3,000,000 in fiscal year 2026 and
each year thereafter;

(3) $3,375,000 the second year is for grants
that enable retail petroleum dispensers, fuel
storage tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than ten retail
petroleum dispensing sites and each site is
located in Minnesota. The grant money must
be used to replace or upgrade equipment that
does not have the ability to be certified for
E25. A grant award must not exceed 65
percent of the cost of the appropriate
technology. A grant award must not exceed
$200,000 per station. The commissioner must
cooperate with biofuel stakeholders in the
implementation of the grant program. The
commissioner, in cooperation with any
economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of money
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses.
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter;

(4) $1,250,000 the second year is for grants
to facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2027, and
may be used for other purposes under this
paragraph. The base under this clause is
$250,000 in fiscal year 2026 and each year
thereafter;

(5) deleted text begin $1,275,000 deleted text end new text begin $5,275,000 new text end the second year is
for providing more fruits, vegetables, meat,
poultry, grain, and dairy for children in school
and early childhood education settings,
including, at the commissioner's discretion,
providing grants to reimburse schools and
early childhood education and child care
providers for purchasing equipment and
agricultural products. deleted text begin Organizations must
participate in the National School Lunch
Program or the Child and Adult Care Food
Program to be eligible. deleted text end new text begin To be eligible for
grants under this clause, organizations must:
(i) participate in the National School Lunch
Program or the Child and Adult Care Food
Program; (ii) source at least 70 percent of food
from within the geographic boundaries of
Minnesota; and (iii) source at least 70 percent
of food from farmers with limited market
access, as defined by Minnesota Statutes,
section 17.133, subdivision 1, paragraph (e). new text end
Of the amount appropriated, $150,000 is for
a statewide coordinator of farm-to-institution
strategy and programming. The coordinator
must consult with relevant stakeholders and
provide technical assistance and training for
participating farmers and eligible grant
recipients. new text begin The appropriation under this clause
is available until June 30, 2027. new text end The base
under this clause is $1,294,000 in fiscal year
2026 and each year thereafter;

deleted text begin (6) $4,000,000 the second year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance on June 30, 2026, may
be used for other purposes under this
paragraph. The allocation in this clause is
onetime;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end $2,000,000 the second year is for urban
youth agricultural education or urban
agriculture community development;

deleted text begin (8) deleted text end new text begin (7) new text end $1,000,000 the second year is for the
good food access program under Minnesota
Statutes, section 17.1017; and

deleted text begin (9) deleted text end new text begin (8) new text end $225,000 the second year is for the
protecting livestock grant program for
producers to support the installation of
measures to prevent the transmission of avian
influenza. For the appropriation in this
paragraph, a grant applicant must document
a cost-share of 20 percent. An applicant's
cost-share amount may be reduced up to
$2,000 to cover time and labor costs.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This appropriation is
available until June 30, 2027. This is a onetime
appropriation. Notwithstanding Minnesota
Statutes, section 16A.28, this appropriation
does not cancel at the end of the second year
and is available until June 30, 2027.
Appropriations encumbered under contract on
or before June 30, 2027, for agricultural
growth, research, and innovation grants are
available until June 30, 2030.

(e) The base for the agricultural growth,
research, and innovation program is
$17,582,000 in fiscal year 2026 and each year
thereafter and includes $200,000 each year for
cooperative development grants.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end