1.1 	A bill for an act
1.2 	relating to agriculture; modifying agriculture provisions; appropriating money; 
1.3 	amending Minnesota Statutes 2022, sections 18C.70, subdivision 5; 18C.71, 
1.4 	subdivision 4; 18C.80, subdivision 2; 31.94; 32D.30; 41B.039, subdivision 2; 
1.5 	41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 1b; 41B.045, 
1.6 	subdivision 2; 41B.047, subdivision 1; Minnesota Statutes 2023 Supplement, 
1.7 	sections 18C.425, subdivision 6; 18K.06; 41B.0391, subdivision 1; Laws 2023, 
1.8 	chapter 43, article 1, section 2.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	ARTICLE 1
1.11 	APPROPRIATIONS

1.12 	Section 1. Laws 2023, chapter 43, article 1, section 2, is amended to read:

1.13	Sec. 2. DEPARTMENT OF AGRICULTURE

1.151.14
	Subdivision 1.Total Appropriation
 	$
	92,025,000
88,025,000
	$
	72,223,000
83,223,000

1.16	Appropriations by Fund
	
1.17		2024
	2025
	
1.191.18
	General
	91,626,000
87,626,000
	71,824,000
82,824,000
	
1.20	Remediation
	399,000
	399,000
	
1.21 	The amounts that may be spent for each 
1.22 	purpose are specified in the following 
1.23 	subdivisions.

2.1	Subd. 2.Protection Services

2.2	Appropriations by Fund
	
2.3		2024
	2025
	
2.52.4
	General
	32,034,000
32,034,000
	18,743,000
21,743,000
	
2.6	Remediation
	399,000
	399,000
	
2.7 	(a) $399,000 the first year and $399,000 the 
2.8 	second year are from the remediation fund for 
2.9 	administrative funding for the voluntary 
2.10 	cleanup program.
2.11 	(b) $625,000 the first year and $625,000 the 
2.12 	second year are for the soil health financial 
2.13 	assistance program under Minnesota Statutes, 
2.14 	section 17.134. The commissioner may award 
2.15 	no more than $50,000 of the appropriation 
2.16 	each year to a single recipient. The 
2.17 	commissioner may use up to 6.5 percent of 
2.18 	this appropriation for costs incurred to 
2.19 	administer the program. Any unencumbered 
2.20 	balance does not cancel at the end of the first 
2.21 	year and is available in the second year. 
2.22 	Appropriations encumbered under contract on 
2.23 	or before June 30, 2025, for soil health 
2.24 	financial assistance grants are available until 
2.25 	June 30, 2027. The base for this appropriation 
2.26 	is $639,000 in fiscal year 2026 and each year 
2.27 	thereafter.
2.28 	(c) $800,000 the first year is for transfer to the 
2.29 	pollinator research account established under 
2.30 	Minnesota Statutes, section 18B.051. The base 
2.31 	for this transfer is $100,000 in fiscal year 2026 
2.32 	and each year thereafter.
2.33 	(d) $150,000 the first year and $150,000 the 
2.34 	second year are for transfer to the noxious 
2.35 	weed and invasive plant species assistance 
3.1 	account established under Minnesota Statutes, 
3.2 	section 18.89, to award grants under 
3.3 	Minnesota Statutes, section 18.90, to counties, 
3.4 	municipalities, and other weed management 
3.5 	entities, including Minnesota Tribal 
3.6 	governments as defined in Minnesota Statutes, 
3.7 	section 10.65. This is a onetime appropriation.
3.8 	(e) $175,000 the first year and $175,000 the 
3.9 	second year are for compensation for 
3.10 	destroyed or crippled livestock under 
3.11 	Minnesota Statutes, section 3.737. The first 
3.12 	year appropriation may be spent to compensate 
3.13 	for livestock that were destroyed or crippled 
3.14 	during fiscal year 2023. If the amount in the 
3.15 	first year is insufficient, the amount in the 
3.16 	second year is available in the first year. The 
3.17 	commissioner may use up to $5,000 each year 
3.18 	to reimburse expenses incurred by university 
3.19 	extension educators to provide fair market 
3.20 	values of destroyed or crippled livestock. If 
3.21 	the commissioner receives federal dollars to 
3.22 	pay claims for destroyed or crippled livestock, 
3.23 	an equivalent amount of this appropriation 
3.24 	may be used to reimburse nonlethal prevention 
3.25 	methods performed by federal wildlife services 
3.26 	staff.
3.27 	(f) $155,000 the first year and $155,000 the 
3.28 	second year are for compensation for crop 
3.29 	damage under Minnesota Statutes, section 
3.30 	3.7371. If the amount in the first year is 
3.31 	insufficient, the amount in the second year is 
3.32 	available in the first year. The commissioner 
3.33 	may use up to $10,000 of the appropriation 
3.34 	each year to reimburse expenses incurred by 
3.35 	the commissioner or the commissioner's 
4.1 	approved agent to investigate and resolve 
4.2 	claims, as well as for costs associated with 
4.3 	training for approved agents. The 
4.4 	commissioner may use up to $40,000 of the 
4.5 	appropriation each year to make grants to 
4.6 	producers for measures to protect stored crops 
4.7 	from elk damage. If the commissioner 
4.8 	determines that claims made under Minnesota 
4.9 	Statutes, section 3.737 or 3.7371, are 
4.10 	unusually high, amounts appropriated for 
4.11 	either program may be transferred to the 
4.12 	appropriation for the other program.
4.13 	(g) $825,000 the first year and $825,000 the 
4.14 	second year are to replace capital equipment 
4.15 	in the Department of Agriculture's analytical 
4.16 	laboratory.
4.17 	(h) $75,000 the first year and $75,000 the 
4.18 	second year are to support a meat processing 
4.19 	liaison position to assist new or existing meat 
4.20 	and poultry processing operations in getting 
4.21 	started, expanding, growing, or transitioning 
4.22 	into new business models.
4.23 	(i) $2,200,000 the first year and $1,650,000 
4.24 	the second year are additional funding to 
4.25 	maintain the current level of service delivery 
4.26 	for programs under this subdivision. The base 
4.27 	for this appropriation is $1,925,000 for fiscal 
4.28 	year 2026 and each year thereafter.
4.29 	(j) $250,000 the first year and $250,000 the 
4.30 	second year are for grants to organizations in 
4.31 	Minnesota to develop enterprises, supply 
4.32 	chains, and markets for continuous-living 
4.33 	cover crops and cropping systems in the early 
4.34 	stages of commercial development. For the 
4.35 	purposes of this paragraph, "continuous-living 
5.1 	cover crops and cropping systems" refers to 
5.2 	agroforestry, perennial biomass, perennial 
5.3 	forage, perennial grains, and winter-annual 
5.4 	cereal grains and oilseeds that have market 
5.5 	value as harvested or grazed commodities. By 
5.6 	February 1 each year, the commissioner must 
5.7 	submit a report to the chairs and ranking 
5.8 	minority members of the legislative 
5.9 	committees with jurisdiction over agriculture 
5.10 	finance and policy detailing uses of the funds 
5.11 	in this paragraph, including administrative 
5.12 	costs, and the achievements these funds 
5.13 	contributed to. The commissioner may use up 
5.14 	to 6.5 percent of this appropriation for 
5.15 	administrative costs. This is a onetime 
5.16 	appropriation.
5.17 	(k) $45,000 the first year and $45,000 the 
5.18 	second year are appropriated for 
5.19 	wolf-livestock conflict-prevention grants. The 
5.20 	commissioner may use some of this 
5.21 	appropriation to support nonlethal prevention 
5.22 	work performed by federal wildlife services. 
5.23 	This is a onetime appropriation.
5.24 	(l) $10,000,000 the first year is for transfer to 
5.25 	the grain indemnity account established in 
5.26 	Minnesota Statutes, section 223.24. This is a 
5.27 	onetime transfer.
5.28 	(m) $125,000 the first year and $125,000 the 
5.29 	second year are for the PFAS in pesticides 
5.30 	review. This is a onetime appropriation.
5.31 	(n) $1,941,000 the first year is for transfer to 
5.32 	the food handler license account. This is a 
5.33 	onetime transfer.
6.1 	(o) $3,000,000 the second year is for nitrate 
6.2 	treatment. This appropriation is available until 
6.3 	June 30, 2027.

6.4
6.5	Subd. 3.Agricultural Marketing and 
Development
 		5,165,000
		4,985,000
	
6.6 	(a) $150,000 the first year and $150,000 the 
6.7 	second year are to expand international trade 
6.8 	opportunities and markets for Minnesota 
6.9 	agricultural products.
6.10 	(b) $186,000 the first year and $186,000 the 
6.11 	second year are for transfer to the Minnesota 
6.12 	grown account and may be used as grants for 
6.13 	Minnesota grown promotion under Minnesota 
6.14 	Statutes, section 17.102. Notwithstanding 
6.15 	Minnesota Statutes, section 16A.28, the 
6.16 	appropriations encumbered under contract on 
6.17 	or before June 30, 2025, for Minnesota grown 
6.18 	grants in this paragraph are available until June 
6.19 	30, 2027.
6.20 	(c) $634,000 the first year and $634,000 the 
6.21 	second year are for the continuation of the 
6.22 	dairy development and profitability 
6.23 	enhancement programs, including dairy 
6.24 	profitability teams and dairy business planning 
6.25 	grants under Minnesota Statutes, section 
6.26 	32D.30.
6.27 	(d) The commissioner may use funds 
6.28 	appropriated in this subdivision for annual 
6.29 	cost-share payments to resident farmers or 
6.30 	entities that sell, process, or package 
6.31 	agricultural products in this state for the costs 
6.32 	of organic certification. The commissioner 
6.33 	may allocate these funds for assistance to 
6.34 	persons transitioning from conventional to 
6.35 	organic agriculture.
7.1 	(e) $600,000 the first year and $420,000 the 
7.2 	second year are to maintain the current level 
7.3 	of service delivery. The base for this 
7.4 	appropriation is $490,000 $510,000 for fiscal 
7.5 	year 2026 and each year thereafter.
7.6 	(f) $100,000 the first year and $100,000 the 
7.7 	second year are for mental health outreach and 
7.8 	support to farmers, ranchers, and others in the 
7.9 	agricultural community and for farm safety 
7.10 	grant and outreach programs under Minnesota 
7.11 	Statutes, section 17.1195. Mental health 
7.12 	outreach and support may include a 24-hour 
7.13 	hotline, stigma reduction, and education. 
7.14 	Notwithstanding Minnesota Statutes, section 
7.15 	16A.28, any unencumbered balance does not 
7.16 	cancel at the end of the first year and is 
7.17 	available in the second year. This is a onetime 
7.18 	appropriation.
7.19 	(g) $100,000 the first year and $100,000 the 
7.20 	second year are to award and administer grants 
7.21 	for infrastructure and other forms of financial 
7.22 	assistance to support EBT, SNAP, SFMNP, 
7.23 	and related programs at farmers markets. 
7.24 	Notwithstanding Minnesota Statutes, section 
7.25 	16A.28, any unencumbered balance does not 
7.26 	cancel at the end of the first year and is 
7.27 	available in the second year. This is a onetime 
7.28 	appropriation.
7.29 	(h) $200,000 the first year and $200,000 the 
7.30 	second year are to award cooperative grants 
7.31 	under Minnesota Statutes, section 17.1016. 
7.32 	The commissioner may use up to 6.5 percent 
7.33 	of the appropriation each year to administer 
7.34 	the grant program. Notwithstanding Minnesota 
7.35 	Statutes, section 16A.28, any unencumbered 
8.1 	balance does not cancel at the end of the first 
8.2 	year and is available in the second year. This 
8.3 	is a onetime appropriation.

8.4
8.5	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		37,809,000
33,809,000
		33,809,000
41,809,000
	
8.6 	(a) $10,702,000 the first year and $10,702,000 
8.7 	the second year are for the agriculture 
8.8 	research, education, extension, and technology 
8.9 	transfer program under Minnesota Statutes, 
8.10 	section 41A.14. Except as provided below, 
8.11 	the appropriation each year is for transfer to 
8.12 	the agriculture research, education, extension, 
8.13 	and technology transfer account under 
8.14 	Minnesota Statutes, section 41A.14, 
8.15 	subdivision 3, and the commissioner shall 
8.16 	transfer funds each year to the Board of 
8.17 	Regents of the University of Minnesota for 
8.18 	purposes of Minnesota Statutes, section 
8.19 	41A.14. To the extent practicable, money 
8.20 	expended under Minnesota Statutes, section 
8.21 	41A.14, subdivision 1, clauses (1) and (2), 
8.22 	must supplement and not supplant existing 
8.23 	sources and levels of funding. The 
8.24 	commissioner may use up to one percent of 
8.25 	this appropriation for costs incurred to 
8.26 	administer the program.
8.27 	Of the amount appropriated for the agriculture 
8.28 	research, education, extension, and technology 
8.29 	transfer grant program under Minnesota 
8.30 	Statutes, section 41A.14:
8.31 	(1) $600,000 the first year and $600,000 the 
8.32 	second year are for the Minnesota Agricultural 
8.33 	Experiment Station's agriculture rapid 
8.34 	response fund under Minnesota Statutes, 
8.35 	section 41A.14, subdivision 1, clause (2);
9.1 	(2) up to $1,000,000 the first year and up to 
9.2 	$1,000,000 the second year are for research 
9.3 	on avian influenza, salmonella, and other 
9.4 	turkey-related diseases and disease prevention 
9.5 	measures;
9.6 	(3) $2,250,000 the first year and $2,250,000 
9.7 	the second year are for grants to the Minnesota 
9.8 	Agricultural Education Leadership Council to 
9.9 	enhance agricultural education with priority 
9.10 	given to Farm Business Management 
9.11 	challenge grants;
9.12 	(4) $450,000 the first year is for the cultivated 
9.13 	wild rice breeding project at the North Central 
9.14 	Research and Outreach Center to include a 
9.15 	tenure track/research associate plant breeder;
9.16 	(5) $350,000 the first year and $350,000 the 
9.17 	second year are for potato breeding;
9.18 	(6) $802,000 the first year and $802,000 the 
9.19 	second year are to fund the Forever Green 
9.20 	Initiative and protect the state's natural 
9.21 	resources while increasing the efficiency, 
9.22 	profitability, and productivity of Minnesota 
9.23 	farmers by incorporating perennial and 
9.24 	winter-annual crops into existing agricultural 
9.25 	practices. The base for the allocation under 
9.26 	this clause is $802,000 in fiscal year 2026 and 
9.27 	each year thereafter. By February 1 each year, 
9.28 	the dean of the College of Food, Agricultural 
9.29 	and Natural Resource Sciences must submit 
9.30 	a report to the chairs and ranking minority 
9.31 	members of the legislative committees with 
9.32 	jurisdiction over agriculture finance and policy 
9.33 	and higher education detailing uses of the 
9.34 	funds in this paragraph, including 
10.1 	administrative costs, and the achievements 
10.2 	these funds contributed to; and
10.3 	(7) $350,000 each year is for farm-scale winter 
10.4 	greenhouse research and development 
10.5 	coordinated by University of Minnesota 
10.6 	Extension Regional Sustainable Development 
10.7 	Partnerships. The allocation in this clause is 
10.8 	onetime.
10.9 	(b) The base for the agriculture research, 
10.10 	education, extension, and technology transfer 
10.11 	program is $10,352,000 in fiscal year 2026 
10.12 	and $10,352,000 in fiscal year 2027.
10.13 	(c) $27,107,000 $23,107,000 the first year and 
10.14 	$23,107,000 the second year are is for the 
10.15 	agricultural growth, research, and innovation 
10.16 	program under Minnesota Statutes, section 
10.17 	41A.12. Except as provided below, the 
10.18 	commissioner may allocate this appropriation 
10.19 	each year among the following areas: 
10.20 	facilitating the start-up, modernization, 
10.21 	improvement, or expansion of livestock 
10.22 	operations, including beginning and 
10.23 	transitioning livestock operations with 
10.24 	preference given to robotic dairy-milking 
10.25 	equipment; assisting value-added agricultural 
10.26 	businesses to begin or expand, to access new 
10.27 	markets, or to diversify, including aquaponics 
10.28 	systems, with preference given to hemp fiber 
10.29 	processing equipment; facilitating the start-up, 
10.30 	modernization, or expansion of other 
10.31 	beginning and transitioning farms, including 
10.32 	by providing loans under Minnesota Statutes, 
10.33 	section 41B.056; sustainable agriculture 
10.34 	on-farm research and demonstration; the 
10.35 	development or expansion of food hubs and 
11.1 	other alternative community-based food 
11.2 	distribution systems; enhancing renewable 
11.3 	energy infrastructure and use; crop research, 
11.4 	including basic and applied turf seed research; 
11.5 	Farm Business Management tuition assistance; 
11.6 	and good agricultural practices and good 
11.7 	handling practices certification assistance. The 
11.8 	commissioner may use up to 6.5 percent of 
11.9 	this appropriation for costs incurred to 
11.10 	administer the program.
11.11 	Of the amount appropriated for the agricultural 
11.12 	growth, research, and innovation program 
11.13 	under Minnesota Statutes, section 41A.12:
11.14 	(1) $1,000,000 the first year and $1,000,000 
11.15 	the second year are is for distribution in equal 
11.16 	amounts to each of the state's county fairs to 
11.17 	preserve and promote Minnesota agriculture;
11.18 	(2) $5,750,000 the first year and $5,750,000 
11.19 	the second year are is for incentive payments 
11.20 	under Minnesota Statutes, sections 41A.16, 
11.21 	41A.17, 41A.18, and 41A.20. Notwithstanding 
11.22 	Minnesota Statutes, section 16A.28, the first 
11.23 	year appropriation is available until June 30, 
11.24 	2025, and the second year appropriation is 
11.25 	available until June 30, 2026. If this 
11.26 	appropriation exceeds the total amount for 
11.27 	which all producers are eligible in a fiscal 
11.28 	year, the balance of the appropriation is 
11.29 	available for other purposes under this 
11.30 	paragraph. The base under this clause is 
11.31 	$3,000,000 in fiscal year 2026 and each year 
11.32 	thereafter;
11.33 	(3) $3,375,000 the first year and $3,375,000 
11.34 	the second year are is for grants that enable 
11.35 	retail petroleum dispensers, fuel storage tanks, 
12.1 	and other equipment to dispense biofuels to 
12.2 	the public in accordance with the biofuel 
12.3 	replacement goals established under 
12.4 	Minnesota Statutes, section 239.7911. A retail 
12.5 	petroleum dispenser selling petroleum for use 
12.6 	in spark ignition engines for vehicle model 
12.7 	years after 2000 is eligible for grant money 
12.8 	under this clause if the retail petroleum 
12.9 	dispenser has no more than 10 retail petroleum 
12.10 	dispensing sites and each site is located in 
12.11 	Minnesota. The grant money must be used to 
12.12 	replace or upgrade equipment that does not 
12.13 	have the ability to be certified for E25. A grant 
12.14 	award must not exceed 65 percent of the cost 
12.15 	of the appropriate technology. A grant award 
12.16 	must not exceed $200,000 per station. The 
12.17 	commissioner must cooperate with biofuel 
12.18 	stakeholders in the implementation of the grant 
12.19 	program. The commissioner, in cooperation 
12.20 	with any economic or community development 
12.21 	financial institution and any other entity with 
12.22 	which the commissioner contracts, must 
12.23 	submit a report on the biofuels infrastructure 
12.24 	financial assistance program by January 15 of 
12.25 	each year to the chairs and ranking minority 
12.26 	members of the legislative committees and 
12.27 	divisions with jurisdiction over agriculture 
12.28 	policy and finance. The annual report must 
12.29 	include but not be limited to a summary of the 
12.30 	following metrics: (i) the number and types 
12.31 	of projects financed; (ii) the amount of dollars 
12.32 	leveraged or matched per project; (iii) the 
12.33 	geographic distribution of financed projects; 
12.34 	(iv) any market expansion associated with 
12.35 	upgraded infrastructure; (v) the demographics 
12.36 	of the areas served; (vi) the costs of the 
13.1 	program; and (vii) the number of grants to 
13.2 	minority-owned or female-owned businesses. 
13.3 	The base under this clause is $3,000,000 for 
13.4 	fiscal year 2026 and each year thereafter;
13.5 	(4) $1,250,000 the first year and $1,250,000 
13.6 	the second year are is for grants to facilitate 
13.7 	the start-up, modernization, or expansion of 
13.8 	meat, poultry, egg, and milk processing 
13.9 	facilities. A grant award under this clause must 
13.10 	not exceed $200,000. Any unencumbered 
13.11 	balance at the end of the second year does not 
13.12 	cancel until June 30, 2026, and may be used 
13.13 	for other purposes under this paragraph. The 
13.14 	base under this clause is $250,000 in fiscal 
13.15 	year 2026 and each year thereafter;
13.16 	(5) $1,150,000 the first year and $1,150,000 
13.17 	the second year are is for providing more 
13.18 	fruits, vegetables, meat, poultry, grain, and 
13.19 	dairy for children in school and early 
13.20 	childhood education centers settings, 
13.21 	including, at the commissioner's discretion, 
13.22 	providing grants to reimburse schools and 
13.23 	early childhood education centers and child 
13.24 	care providers for purchasing equipment and 
13.25 	agricultural products. Organizations must 
13.26 	participate in the National School Lunch 
13.27 	Program or the Child and Adult Care Food 
13.28 	Program to be eligible. Of the amount 
13.29 	appropriated, $150,000 each year is for a 
13.30 	statewide coordinator of farm-to-institution 
13.31 	strategy and programming. The coordinator 
13.32 	must consult with relevant stakeholders and 
13.33 	provide technical assistance and training for 
13.34 	participating farmers and eligible grant 
13.35 	recipients. The base under this clause is 
14.1 	$1,294,000 in fiscal year 2026 and each year 
14.2 	thereafter;
14.3 	(6) $4,000,000 the first year is for Dairy 
14.4 	Assistance, Investment, Relief Initiative 
14.5 	(DAIRI) grants and other forms of financial 
14.6 	assistance to Minnesota dairy farms that enroll 
14.7 	in coverage under a federal dairy risk 
14.8 	protection program and produced no more 
14.9 	than 16,000,000 pounds of milk in 2022. The 
14.10 	commissioner must make DAIRI payments 
14.11 	based on the amount of milk produced in 
14.12 	2022, up to 5,000,000 pounds per participating 
14.13 	farm, at a rate determined by the commissioner 
14.14 	within the limits of available funding. Any 
14.15 	unencumbered balance does not cancel at the 
14.16 	end of the first year and is available in the 
14.17 	second year. Any unencumbered balance at 
14.18 	the end of the second year does not cancel 
14.19 	until June 30, 2026, and may be used for other 
14.20 	purposes under this paragraph. The allocation 
14.21 	in this clause is onetime;
14.22 	(7) (6) $2,000,000 the first year and 
14.23 	$2,000,000 the second year are is for urban 
14.24 	youth agricultural education or urban 
14.25 	agriculture community development; and
14.26 	(8) (7) $1,000,000 the first year and 
14.27 	$1,000,000 the second year are is for the good 
14.28 	food access program under Minnesota 
14.29 	Statutes, section 17.1017.
14.30 	Notwithstanding Minnesota Statutes, section 
14.31 	16A.28, any unencumbered balance does not 
14.32 	cancel at the end of the first year and is 
14.33 	available for the second year, and 
14.34 	appropriations encumbered under contract on 
14.35 	or before June 30, 2025, for agricultural 
15.1 	growth, research, and innovation grants are 
15.2 	available until June 30, 2028.
15.3 	(d) $31,107,000 the second year is for the 
15.4 	agricultural growth, research, and innovation 
15.5 	program under Minnesota Statutes, section 
15.6 	41A.12. Except as provided below, the 
15.7 	commissioner may allocate this appropriation 
15.8 	among the following areas: facilitating the 
15.9 	start-up, modernization, improvement, or 
15.10 	expansion of livestock operations, including 
15.11 	beginning and transitioning livestock 
15.12 	operations with preference given to robotic 
15.13 	dairy-milking equipment; assisting 
15.14 	value-added agricultural businesses to begin 
15.15 	or expand, to access new markets, or to 
15.16 	diversify, including aquaponics systems, with 
15.17 	preference given to hemp fiber processing 
15.18 	equipment; facilitating the start-up, 
15.19 	modernization, or expansion of other 
15.20 	beginning and transitioning farms, including 
15.21 	by providing loans under Minnesota Statutes, 
15.22 	section 41B.056; sustainable agriculture 
15.23 	on-farm research and demonstration; the 
15.24 	development or expansion of food hubs and 
15.25 	other alternative community-based food 
15.26 	distribution systems; enhancing renewable 
15.27 	energy infrastructure and use; crop research, 
15.28 	including basic and applied turf seed research; 
15.29 	Farm Business Management tuition assistance; 
15.30 	and good agricultural practices and good 
15.31 	handling practices certification assistance. The 
15.32 	commissioner may use up to 6.5 percent of 
15.33 	this appropriation for costs incurred to 
15.34 	administer the program.
16.1 	Of the amount appropriated for the agricultural 
16.2 	growth, research, and innovation program 
16.3 	under Minnesota Statutes, section 41A.12:
16.4 	(1) $1,000,000 the second year is for 
16.5 	distribution in equal amounts to each of the 
16.6 	state's county fairs to preserve and promote 
16.7 	Minnesota agriculture;
16.8 	(2) $5,750,000 the second year is for incentive 
16.9 	payments under Minnesota Statutes, sections 
16.10 	41A.16, 41A.17, 41A.18, and 41A.20. 
16.11 	Notwithstanding Minnesota Statutes, section 
16.12 	16A.28, this appropriation is available until 
16.13 	June 30, 2027. If this appropriation exceeds 
16.14 	the total amount for which all producers are 
16.15 	eligible in a fiscal year, the balance of the 
16.16 	appropriation is available for other purposes 
16.17 	under this paragraph. The base under this 
16.18 	clause is $3,000,000 in fiscal year 2026 and 
16.19 	each year thereafter;
16.20 	(3) $3,375,000 the second year is for grants 
16.21 	that enable retail petroleum dispensers, fuel 
16.22 	storage tanks, and other equipment to dispense 
16.23 	biofuels to the public in accordance with the 
16.24 	biofuel replacement goals established under 
16.25 	Minnesota Statutes, section 239.7911. A retail 
16.26 	petroleum dispenser selling petroleum for use 
16.27 	in spark ignition engines for vehicle model 
16.28 	years after 2000 is eligible for grant money 
16.29 	under this clause if the retail petroleum 
16.30 	dispenser has no more than ten retail 
16.31 	petroleum dispensing sites and each site is 
16.32 	located in Minnesota. The grant money must 
16.33 	be used to replace or upgrade equipment that 
16.34 	does not have the ability to be certified for 
16.35 	E25. A grant award must not exceed 65 
17.1 	percent of the cost of the appropriate 
17.2 	technology. A grant award must not exceed 
17.3 	$200,000 per station. The commissioner must 
17.4 	cooperate with biofuel stakeholders in the 
17.5 	implementation of the grant program. The 
17.6 	commissioner, in cooperation with any 
17.7 	economic or community development 
17.8 	financial institution and any other entity with 
17.9 	which the commissioner contracts, must 
17.10 	submit a report on the biofuels infrastructure 
17.11 	financial assistance program by January 15 of 
17.12 	each year to the chairs and ranking minority 
17.13 	members of the legislative committees and 
17.14 	divisions with jurisdiction over agriculture 
17.15 	policy and finance. The annual report must 
17.16 	include but not be limited to a summary of the 
17.17 	following metrics: (i) the number and types 
17.18 	of projects financed; (ii) the amount of dollars 
17.19 	leveraged or matched per project; (iii) the 
17.20 	geographic distribution of financed projects; 
17.21 	(iv) any market expansion associated with 
17.22 	upgraded infrastructure; (v) the demographics 
17.23 	of the areas served; (vi) the costs of the 
17.24 	program; and (vii) the number of grants to 
17.25 	minority-owned or female-owned businesses. 
17.26 	The base under this clause is $3,000,000 for 
17.27 	fiscal year 2026 and each year thereafter;
17.28 	(4) $1,250,000 the second year is for grants 
17.29 	to facilitate the start-up, modernization, or 
17.30 	expansion of meat, poultry, egg, and milk 
17.31 	processing facilities. A grant award under this 
17.32 	clause must not exceed $200,000. Any 
17.33 	unencumbered balance at the end of the second 
17.34 	year does not cancel until June 30, 2027, and 
17.35 	may be used for other purposes under this 
17.36 	paragraph. The base under this clause is 
18.1 	$250,000 in fiscal year 2026 and each year 
18.2 	thereafter;
18.3 	(5) $1,150,000 the second year is for providing 
18.4 	more fruits, vegetables, meat, poultry, grain, 
18.5 	and dairy for children in school and early 
18.6 	childhood education settings, including, at the 
18.7 	commissioner's discretion, providing grants 
18.8 	to reimburse schools and early childhood 
18.9 	education and child care providers for 
18.10 	purchasing equipment and agricultural 
18.11 	products. Organizations must participate in 
18.12 	the National School Lunch Program or the 
18.13 	Child and Adult Care Food Program to be 
18.14 	eligible. Of the amount appropriated, $150,000 
18.15 	is for a statewide coordinator of 
18.16 	farm-to-institution strategy and programming. 
18.17 	The coordinator must consult with relevant 
18.18 	stakeholders and provide technical assistance 
18.19 	and training for participating farmers and 
18.20 	eligible grant recipients. The base under this 
18.21 	clause is $1,294,000 in fiscal year 2026 and 
18.22 	each year thereafter;
18.23 	(6) $4,000,000 the second year is for Dairy 
18.24 	Assistance, Investment, Relief Initiative 
18.25 	(DAIRI) grants and other forms of financial 
18.26 	assistance to Minnesota dairy farms that enroll 
18.27 	in coverage under a federal dairy risk 
18.28 	protection program and produced no more 
18.29 	than 16,000,000 pounds of milk in 2022. The 
18.30 	commissioner must make DAIRI payments 
18.31 	based on the amount of milk produced in 
18.32 	2022, up to 5,000,000 pounds per participating 
18.33 	farm, at a rate determined by the commissioner 
18.34 	within the limits of available funding. Any 
18.35 	unencumbered balance on June 30, 2026, may 
19.1 	be used for other purposes under this 
19.2 	paragraph. The allocation in this clause is 
19.3 	onetime;
19.4 	(7) $2,000,000 the second year is for urban 
19.5 	youth agricultural education or urban 
19.6 	agriculture community development; and
19.7 	(8) $1,000,000 the second year is for the good 
19.8 	food access program under Minnesota 
19.9 	Statutes, section 17.1017.
19.10 	Notwithstanding Minnesota Statutes, section 
19.11 	16A.28, any unencumbered balance does not 
19.12 	cancel at the end of the second year and is 
19.13 	available until June 30, 2027. Appropriations 
19.14 	encumbered under contract on or before June 
19.15 	30, 2027, for agricultural growth, research, 
19.16 	and innovation grants are available until June 
19.17 	30, 2030.
19.18 	(d) (e) The base for the agricultural growth, 
19.19 	research, and innovation program is 
19.20 	$16,294,000 in fiscal year 2026 and each year 
19.21 	thereafter and includes $200,000 each year for 
19.22 	cooperative development grants.

19.23
19.24	Subd. 5.Administration and Financial 
Assistance
 		16,618,000
		14,287,000
	
19.25 	(a) $474,000 the first year and $474,000 the 
19.26 	second year are for payments to county and 
19.27 	district agricultural societies and associations 
19.28 	under Minnesota Statutes, section 38.02, 
19.29 	subdivision 1. Aid payments to county and 
19.30 	district agricultural societies and associations 
19.31 	must be disbursed no later than July 15 of each 
19.32 	year. These payments are the amount of aid 
19.33 	from the state for an annual fair held in the 
19.34 	previous calendar year.
20.1 	(b) $350,000 the first year and $350,000 the 
20.2 	second year are for grants to the Minnesota 
20.3 	Agricultural Education and Leadership 
20.4 	Council for programs of the council under 
20.5 	Minnesota Statutes, chapter 41D. The base for 
20.6 	this appropriation is $250,000 in fiscal year 
20.7 	2026 and each year thereafter.
20.8 	(c) $2,000 the first year is for a grant to the 
20.9 	Minnesota State Poultry Association. This is 
20.10 	a onetime appropriation. Notwithstanding 
20.11 	Minnesota Statutes, section 16A.28, any 
20.12 	unencumbered balance does not cancel at the 
20.13 	end of the first year and is available for the 
20.14 	second year.
20.15 	(d) $18,000 the first year and $18,000 the 
20.16 	second year are for grants to the Minnesota 
20.17 	Livestock Breeders Association. This is a 
20.18 	onetime appropriation.
20.19 	(e) $60,000 the first year and $60,000 the 
20.20 	second year are for grants to the Northern 
20.21 	Crops Institute that may be used to purchase 
20.22 	equipment. This is a onetime appropriation.
20.23 	(f) $34,000 the first year and $34,000 the 
20.24 	second year are for grants to the Minnesota 
20.25 	State Horticultural Society. This is a onetime 
20.26 	appropriation.
20.27 	(g) $25,000 the first year and $25,000 the 
20.28 	second year are for grants to the Center for 
20.29 	Rural Policy and Development. This is a 
20.30 	onetime appropriation.
20.31 	(h) $75,000 the first year and $75,000 the 
20.32 	second year are appropriated from the general 
20.33 	fund to the commissioner of agriculture for 
20.34 	grants to the Minnesota Turf Seed Council for 
21.1 	basic and applied research on: (1) the 
21.2 	improved production of forage and turf seed 
21.3 	related to new and improved varieties; and (2) 
21.4 	native plants, including plant breeding, 
21.5 	nutrient management, pest management, 
21.6 	disease management, yield, and viability. The 
21.7 	Minnesota Turf Seed Council may subcontract 
21.8 	with a qualified third party for some or all of 
21.9 	the basic or applied research. Any 
21.10 	unencumbered balance does not cancel at the 
21.11 	end of the first year and is available in the 
21.12 	second year. The Minnesota Turf Seed Council 
21.13 	must prepare a report outlining the use of the 
21.14 	grant money and related accomplishments. No 
21.15 	later than January 15, 2025, the council must 
21.16 	submit the report to the chairs and ranking 
21.17 	minority members of the legislative 
21.18 	committees and divisions with jurisdiction 
21.19 	over agriculture finance and policy. This is a 
21.20 	onetime appropriation.
21.21 	(i) $100,000 the first year and $100,000 the 
21.22 	second year are for grants to GreenSeam for 
21.23 	assistance to agriculture-related businesses to 
21.24 	support business retention and development, 
21.25 	business attraction and creation, talent 
21.26 	development and attraction, and regional 
21.27 	branding and promotion. These are onetime 
21.28 	appropriations. No later than December 1, 
21.29 	2024, and December 1, 2025, GreenSeam 
21.30 	must report to the chairs and ranking minority 
21.31 	members of the legislative committees with 
21.32 	jurisdiction over agriculture and rural 
21.33 	development with information on new and 
21.34 	existing businesses supported, number of new 
21.35 	jobs created in the region, new educational 
22.1 	partnerships and programs supported, and 
22.2 	regional branding and promotional efforts.
22.3 	(j) $1,950,000 the first year and $1,950,000 
22.4 	the second year are for grants to Second 
22.5 	Harvest Heartland on behalf of Minnesota's 
22.6 	six Feeding America food banks for the 
22.7 	following purposes:
22.8 	(1) at least $850,000 each year must be 
22.9 	allocated to purchase milk for distribution to 
22.10 	Minnesota's food shelves and other charitable 
22.11 	organizations that are eligible to receive food 
22.12 	from the food banks. Milk purchased under 
22.13 	the grants must be acquired from Minnesota 
22.14 	milk processors and based on low-cost bids. 
22.15 	The milk must be allocated to each Feeding 
22.16 	America food bank serving Minnesota 
22.17 	according to the formula used in the 
22.18 	distribution of United States Department of 
22.19 	Agriculture commodities under The 
22.20 	Emergency Food Assistance Program. Second 
22.21 	Harvest Heartland may enter into contracts or 
22.22 	agreements with food banks for shared funding 
22.23 	or reimbursement of the direct purchase of 
22.24 	milk. Each food bank that receives funding 
22.25 	under this clause may use up to two percent 
22.26 	for administrative expenses. Notwithstanding 
22.27 	Minnesota Statutes, section 16A.28, any 
22.28 	unencumbered balance the first year does not 
22.29 	cancel and is available the second year;
22.30 	(2) to compensate agricultural producers and 
22.31 	processors for costs incurred to harvest and 
22.32 	package for transfer surplus fruits, vegetables, 
22.33 	and other agricultural commodities that would 
22.34 	otherwise go unharvested, be discarded, or be 
22.35 	sold in a secondary market. Surplus 
23.1 	commodities must be distributed statewide to 
23.2 	food shelves and other charitable organizations 
23.3 	that are eligible to receive food from the food 
23.4 	banks. Surplus food acquired under this clause 
23.5 	must be from Minnesota producers and 
23.6 	processors. Second Harvest Heartland may 
23.7 	use up to 15 percent of each grant awarded 
23.8 	under this clause for administrative and 
23.9 	transportation expenses; and
23.10 	(3) to purchase and distribute protein products, 
23.11 	including but not limited to pork, poultry, beef, 
23.12 	dry legumes, cheese, and eggs to Minnesota's 
23.13 	food shelves and other charitable organizations 
23.14 	that are eligible to receive food from the food 
23.15 	banks. Second Harvest Heartland may use up 
23.16 	to two percent of each grant awarded under 
23.17 	this clause for administrative expenses. Protein 
23.18 	products purchased under the grants must be 
23.19 	acquired from Minnesota processors and 
23.20 	producers.
23.21 	Second Harvest Heartland must submit 
23.22 	quarterly reports to the commissioner and the 
23.23 	chairs and ranking minority members of the 
23.24 	legislative committees with jurisdiction over 
23.25 	agriculture finance in the form prescribed by 
23.26 	the commissioner. The reports must include 
23.27 	but are not limited to information on the 
23.28 	expenditure of funds, the amount of milk or 
23.29 	other commodities purchased, and the 
23.30 	organizations to which this food was 
23.31 	distributed. The base for this appropriation is 
23.32 	$1,700,000 for fiscal year 2026 and each year 
23.33 	thereafter.
23.34 	(k) $25,000 the first year and $25,000 the 
23.35 	second year are for grants to the Southern 
24.1 	Minnesota Initiative Foundation to promote 
24.2 	local foods through an annual event that raises 
24.3 	public awareness of local foods and connects 
24.4 	local food producers and processors with 
24.5 	potential buyers.
24.6 	(l) $300,000 the first year and $300,000 the 
24.7 	second year are for grants to The Good Acre 
24.8 	for the Local Emergency Assistance Farmer 
24.9 	Fund (LEAFF) program to compensate 
24.10 	emerging farmers for crops donated to hunger 
24.11 	relief organizations in Minnesota. This is a 
24.12 	onetime appropriation.
24.13 	(m) $750,000 the first year and $750,000 the 
24.14 	second year are to expand the Emerging 
24.15 	Farmers Office and provide services to 
24.16 	beginning and emerging farmers to increase 
24.17 	connections between farmers and market 
24.18 	opportunities throughout the state. This 
24.19 	appropriation may be used for grants, 
24.20 	translation services, training programs, or 
24.21 	other purposes in line with the 
24.22 	recommendations of the Emerging Farmer 
24.23 	Working Group established under Minnesota 
24.24 	Statutes, section 17.055, subdivision 1. The 
24.25 	base for this appropriation is $1,000,000 in 
24.26 	fiscal year 2026 and each year thereafter.
24.27 	(n) $50,000 the first year is to provide 
24.28 	technical assistance and leadership in the 
24.29 	development of a comprehensive and 
24.30 	well-documented state aquaculture plan. The 
24.31 	commissioner must provide the state 
24.32 	aquaculture plan to the legislative committees 
24.33 	with jurisdiction over agriculture finance and 
24.34 	policy by February 15, 2025.
25.1 	(o) $337,000 the first year and $337,000 the 
25.2 	second year are for farm advocate services. 
25.3 	Of these amounts, $50,000 the first year and 
25.4 	$50,000 the second year are for the 
25.5 	continuation of the farmland transition 
25.6 	programs and may be used for grants to 
25.7 	farmland access teams to provide technical 
25.8 	assistance to potential beginning farmers. 
25.9 	Farmland access teams must assist existing 
25.10 	farmers and beginning farmers with 
25.11 	transitioning farm ownership and farm 
25.12 	operation. Services provided by teams may 
25.13 	include but are not limited to mediation 
25.14 	assistance, designing contracts, financial 
25.15 	planning, tax preparation, estate planning, and 
25.16 	housing assistance.
25.17 	(p) $260,000 the first year and $260,000 the 
25.18 	second year are for a pass-through grant to 
25.19 	Region Five Development Commission to 
25.20 	provide, in collaboration with Farm Business 
25.21 	Management, statewide mental health 
25.22 	counseling support to Minnesota farm 
25.23 	operators, families, and employees, and 
25.24 	individuals who work with Minnesota farmers 
25.25 	in a professional capacity. Region Five 
25.26 	Development Commission may use up to 6.5 
25.27 	percent of the grant awarded under this 
25.28 	paragraph for administration.
25.29 	(q) $1,000,000 the first year is for transfer to 
25.30 	the agricultural emergency account established 
25.31 	under Minnesota Statutes, section 17.041.
25.32 	(r) $1,084,000 the first year and $500,000 the 
25.33 	second year are to support IT modernization 
25.34 	efforts, including laying the technology 
25.35 	foundations needed for improving customer 
26.1 	interactions with the department for licensing 
26.2 	and payments. This is a onetime appropriation.
26.3 	(s) $275,000 the first year is for technical 
26.4 	assistance grants to certified community 
26.5 	development financial institutions that 
26.6 	participate in United States Department of 
26.7 	Agriculture loan or grant programs for small 
26.8 	or emerging farmers, including but not limited 
26.9 	to the Increasing Land, Capital, and Market 
26.10 	Access Program. For purposes of this 
26.11 	paragraph, "emerging farmer" has the meaning 
26.12 	given in Minnesota Statutes, section 17.055, 
26.13 	subdivision 1. The commissioner may use up 
26.14 	to 6.5 percent of this appropriation for costs 
26.15 	incurred to administer the program. 
26.16 	Notwithstanding Minnesota Statutes, section 
26.17 	16A.28, any unencumbered balance does not 
26.18 	cancel at the end of the first year and is 
26.19 	available in the second year. This is a onetime 
26.20 	appropriation.
26.21 	(t) $1,425,000 the first year and $1,425,000 
26.22 	the second year are for transfer to the 
26.23 	agricultural and environmental revolving loan 
26.24 	account established under Minnesota Statutes, 
26.25 	section 17.117, subdivision 5a, for low-interest 
26.26 	loans under Minnesota Statutes, section 
26.27 	17.117.
26.28 	(u) $150,000 the first year and $150,000 the 
26.29 	second year are for administrative support for 
26.30 	the Rural Finance Authority.
26.31 	(v) The base in fiscal years 2026 and 2027 is 
26.32 	$150,000 each year to coordinate 
26.33 	climate-related activities and services within 
26.34 	the Department of Agriculture and 
26.35 	counterparts in local, state, and federal 
27.1 	agencies and to hire a full-time climate 
27.2 	implementation coordinator. The climate 
27.3 	implementation coordinator must coordinate 
27.4 	efforts seeking federal funding for Minnesota's 
27.5 	agricultural climate adaptation and mitigation 
27.6 	efforts and develop strategic partnerships with 
27.7 	the private sector and nongovernment 
27.8 	organizations.
27.9 	(w) $1,200,000 the first year and $930,000 the 
27.10 	second year are to maintain the current level 
27.11 	of service delivery. The base for this 
27.12 	appropriation is $1,085,000 in fiscal year 2026 
27.13 	and $1,085,000 $1,065,000 in fiscal year 2027
27.14 	and each year thereafter.
27.15 	(x) $250,000 the first year is for a grant to the 
27.16 	Board of Regents of the University of 
27.17 	Minnesota to purchase equipment for the 
27.18 	Veterinary Diagnostic Laboratory to test for 
27.19 	chronic wasting disease, African swine fever, 
27.20 	avian influenza, and other animal diseases. 
27.21 	The Veterinary Diagnostic Laboratory must 
27.22 	report expenditures under this paragraph to 
27.23 	the legislative committees with jurisdiction 
27.24 	over agriculture finance and higher education 
27.25 	with a report submitted by January 3, 2024, 
27.26 	and a final report submitted by December 31, 
27.27 	2024. The reports must include a list of 
27.28 	equipment purchased, including the cost of 
27.29 	each item.
27.30 	(y) $1,000,000 the first year and $1,000,000 
27.31 	the second year are to award and administer 
27.32 	down payment assistance grants under 
27.33 	Minnesota Statutes, section 17.133, with 
27.34 	priority given to emerging farmers as defined 
27.35 	in Minnesota Statutes, section 17.055, 
28.1 	subdivision 1. Notwithstanding Minnesota 
28.2 	Statutes, section 16A.28, any unencumbered 
28.3 	balance at the end of the first year does not 
28.4 	cancel and is available in the second year and 
28.5 	appropriations encumbered under contract by 
28.6 	June 30, 2025, are available until June 30, 
28.7 	2027.
28.8 	(z) $222,000 the first year and $322,000 the 
28.9 	second year are for meat processing training 
28.10 	and retention incentive grants under section 
28.11 	5. The commissioner may use up to 6.5 
28.12 	percent of this appropriation for costs incurred 
28.13 	to administer the program. Notwithstanding 
28.14 	Minnesota Statutes, section 16A.28, any 
28.15 	unencumbered balance does not cancel at the 
28.16 	end of the first year and is available in the 
28.17 	second year. This is a onetime appropriation.
28.18 	(aa) $300,000 the first year and $300,000 the 
28.19 	second year are for transfer to the Board of 
28.20 	Regents of the University of Minnesota to 
28.21 	evaluate, propagate, and maintain the genetic 
28.22 	diversity of oilseeds, grains, grasses, legumes, 
28.23 	and other plants including flax, timothy, 
28.24 	barley, rye, triticale, alfalfa, orchard grass, 
28.25 	clover, and other species and varieties that 
28.26 	were in commercial distribution and use in 
28.27 	Minnesota before 1970, excluding wild rice. 
28.28 	This effort must also protect traditional seeds 
28.29 	brought to Minnesota by immigrant 
28.30 	communities. This appropriation includes 
28.31 	funding for associated extension and outreach 
28.32 	to small and Black, Indigenous, and People of 
28.33 	Color (BIPOC) farmers. This is a onetime 
28.34 	appropriation.
29.1 	(bb) The commissioner shall continue to 
29.2 	increase connections with ethnic minority and 
29.3 	immigrant farmers to farming opportunities 
29.4 	and farming programs throughout the state.

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

29.6 	ARTICLE 2
29.7 	AGRICULTURE STATUTORY CHANGES

29.8 	Section 1. Minnesota Statutes 2023 Supplement, section 18C.425, subdivision 6, is amended 
29.9 	to read:
29.10 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
29.11 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
29.12 	pay the inspection fee to the commissioner.
29.13 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
29.14 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
29.15 	exempted under section 18C.421, subdivision 1, paragraph (b).
29.16 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
29.17 	amendments, or plant amendments sold and used in this state must pay the inspection fee 
29.18 	set under paragraph (e), and until June 30, 2024 2029, an additional 40 cents per ton, of 
29.19 	fertilizer, soil amendment, and plant amendment sold or distributed in this state, with a 
29.20 	minimum of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner 
29.21 	must deposit all revenue from the additional 40 cents per ton fee in the agricultural fertilizer 
29.22 	research and education account in section 18C.80. Products sold or distributed to 
29.23 	manufacturers or exchanged between them are exempt from the inspection fee imposed by 
29.24 	this subdivision if the products are used exclusively for manufacturing purposes.
29.25 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
29.26 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
29.27 	of three years.
29.28 	(e) By commissioner's order, the commissioner must set the inspection fee at no less 
29.29 	than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a 
29.30 	public meeting before increasing the fee by more than five cents per ton.

29.31 	Sec. 2. Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:
29.32 		Subd. 5.Expiration. This section expires June 30, 2025 2030.

30.1 	Sec. 3. Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:
30.2 		Subd. 4.Expiration. This section expires June 30, 2025 2030.

30.3 	Sec. 4. Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:
30.4 		Subd. 2.Expiration. This section expires June 30, 2025 2030.

30.5 	Sec. 5. Minnesota Statutes 2023 Supplement, section 18K.06, is amended to read:
30.6 	18K.06 RULEMAKING.
30.7 	(a) The commissioner shall adopt rules governing the production, testing, processing, 
30.8 	and licensing of industrial hemp. Notwithstanding the two-year limitation for exempt rules 
30.9 	under section 14.388, subdivision 1, Minnesota Rules, chapter 1565, published in the State 
30.10 	Register on August 16, 2021, is effective until August 16, 2025, or until permanent rules 
30.11 	implementing chapter 18K are adopted, whichever occurs first may adopt or amend rules 
30.12 	governing the production, testing, processing, and licensing of industrial hemp using the 
30.13 	procedure in section 14.386, paragraph (a). Section 14.386, paragraph (b), does not apply 
30.14 	to rules adopted or amended under this section.
30.15 	(b) Rules adopted under paragraph (a) must include but not be limited to provisions 
30.16 	governing:
30.17 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
30.18 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
30.19 	(3) the use of background check results required under section 18K.04 to approve or 
30.20 	deny a license application; and
30.21 	(4) any other provision or procedure necessary to carry out the purposes of this chapter.
30.22 	(c) Rules issued under this section must be consistent with federal law regarding the 
30.23 	production, distribution, and sale of industrial hemp.

30.24 	Sec. 6. Minnesota Statutes 2022, section 31.94, is amended to read:
30.25 	31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.
30.26 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
30.27 	commissioner shall:
30.28 	(1) survey producers and support services and organizations to determine information 
30.29 	and research needs in the area of organic agriculture practices;
31.1 	(2) work with the University of Minnesota and other research and education institutions 
31.2 	to demonstrate the on-farm applicability of organic agriculture practices to conditions in 
31.3 	this state;
31.4 	(3) direct the programs of the department so as to work toward the promotion of organic 
31.5 	agriculture in this state;
31.6 	(4) inform agencies about state or federal programs that support organic agriculture 
31.7 	practices; and
31.8 	(5) work closely with producers, producer organizations, the University of Minnesota, 
31.9 	and other appropriate agencies and organizations to identify opportunities and needs as well 
31.10 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
31.11 	teaching, marketing, and extension work relating to organic agriculture.
31.12 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, in 
31.13 	conjunction with the task force created in paragraph (c), shall report on the status of organic 
31.14 	agriculture in Minnesota to the legislative policy and finance committees and divisions with 
31.15 	jurisdiction over agriculture. The report must include available data on organic acreage and 
31.16 	production, available data on the sales or market performance of organic products, and 
31.17 	recommendations regarding programs, policies, and research efforts that will benefit 
31.18 	Minnesota's organic agriculture sector.
31.19 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
31.20 	University of Minnesota on policies and programs that will improve organic agriculture in 
31.21 	Minnesota, including how available resources can most effectively be used for outreach, 
31.22 	education, research, and technical assistance that meet the needs of the organic agriculture 
31.23 	sector. The task force must consist of the following residents of the state:
31.24 	(1) three organic farmers;
31.25 	(2) one wholesaler or distributor of organic products;
31.26 	(3) one representative of organic certification agencies;
31.27 	(4) two organic processors;
31.28 	(5) one representative from University of Minnesota Extension;
31.29 	(6) one University of Minnesota faculty member;
31.30 	(7) one representative from a nonprofit organization representing producers;
31.31 	(8) two public members;
32.1 	(9) one representative from the United States Department of Agriculture;
32.2 	(10) one retailer of organic products; and
32.3 	(11) one organic consumer representative.
32.4 	The commissioner, in consultation with the director of the Minnesota Agricultural Experiment 
32.5 	Station; the dean and director of University of Minnesota Extension and the dean of the 
32.6 	College of Food, Agricultural and Natural Resource Sciences, shall appoint members to 
32.7 	serve three-year terms.
32.8 	Compensation and removal of members are governed by section 15.059, subdivision 6. 
32.9 	The task force must meet at least twice each year and expires on June 30, 2024 2034.
32.10 	(d) For the purposes of expanding, improving, and developing production and marketing 
32.11 	of the organic products of Minnesota agriculture, the commissioner may receive funds from 
32.12 	state and federal sources and spend them, including through grants or contracts, to assist 
32.13 	producers and processors to achieve certification, to conduct education or marketing 
32.14 	activities, to enter into research and development partnerships, or to address production or 
32.15 	marketing obstacles to the growth and well-being of the industry.
32.16 	(e) The commissioner may facilitate the registration of state organic production and 
32.17 	handling operations including those exempt from organic certification according to Code 
32.18 	of Federal Regulations, title 7, section 205.101, and accredited certification agencies 
32.19 	operating within the state.

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

32.21 	Sec. 7. Minnesota Statutes 2022, section 32D.30, is amended to read:
32.22 	32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.
32.23 		Subdivision 1.Program. The commissioner must implement a dairy development and 
32.24 	profitability enhancement program consisting of a dairy profitability enhancement teams 
32.25 	and program, dairy business planning grants, and other services to support the dairy industry.
32.26 		Subd. 2.Dairy profitability enhancement teams program. (a) The dairy profitability 
32.27 	enhancement teams program must provide one-on-one information and technical assistance 
32.28 	to dairy farms of all sizes to enhance their financial success and long-term sustainability. 
32.29 	Teams The program must assist dairy producers in all dairy-producing regions of the state 
32.30 	and. Assistance to producers from the program may consist of be provided individually, as 
32.31 	a team, or through other methods by farm business management instructors, dairy extension 
32.32 	specialists, and other dairy industry partners. Teams The program may engage in activities 
33.1 	including such as comprehensive financial analysis, risk management education, enhanced 
33.2 	milk marketing tools and technologies, and facilitating or improving production systems,
33.3 	including rotational grazing and other sustainable agriculture methods, and value-added 
33.4 	opportunities.
33.5 	(b) The commissioner must make grants to regional or statewide organizations qualified 
33.6 	to manage the various components of the teams program and serve as program administrators. 
33.7 	Each regional or statewide organization must designate a coordinator responsible for 
33.8 	overseeing the program and submitting periodic reports to the commissioner regarding 
33.9 	aggregate changes in producer financial stability, productivity, product quality, animal 
33.10 	health, environmental protection, and other performance measures attributable to the program. 
33.11 	The organizations must submit this information in a format that maintains the confidentiality 
33.12 	of individual dairy producers.
33.13 		Subd. 3.Dairy business planning grants. The commissioner may award dairy business 
33.14 	planning grants of up to $5,000 per producer or dairy processor to develop comprehensive 
33.15 	business plans use technical assistance services for evaluating operations, transitional 
33.16 	changes, expansions, improvements, and other business modifications. Producers and 
33.17 	processors must not use dairy business planning grants for capital improvements.
33.18 		Subd. 4.Funding allocation. Except as specified in law, the commissioner may allocate 
33.19 	dairy development and profitability enhancement program dollars among for the permissible 
33.20 	uses specified in this section and other needs to support the dairy industry, including efforts 
33.21 	to improve the quality of milk produced in the state, in the proportions that the commissioner 
33.22 	deems most beneficial to the state's dairy farmers.
33.23 		Subd. 5.Reporting. No later than July 1 each year, the commissioner must submit a 
33.24 	detailed accomplishment report and work plan detailing future plans for, and the actual and 
33.25 	anticipated accomplishments from, expenditures under this section to the chairs and ranking 
33.26 	minority members of the legislative committees and divisions with jurisdiction over 
33.27 	agriculture policy and finance. If the commissioner significantly modifies a submitted work 
33.28 	plan during the fiscal year, the commissioner must notify the chairs and ranking minority 
33.29 	members.

33.30 	Sec. 8. Minnesota Statutes 2022, section 41B.039, subdivision 2, is amended to read:
33.31 		Subd. 2.State participation. The state may participate in a new real estate loan with 
33.32 	an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount 
33.33 	of the loan or $400,000 $500,000, whichever is less. The interest rates and repayment terms 
34.1 	of the authority's participation interest may be different than the interest rates and repayment 
34.2 	terms of the lender's retained portion of the loan.

34.3 	Sec. 9. Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 1, is amended 
34.4 	to read:
34.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
34.6 	the meanings given.
34.7 	(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and 
34.8 	machinery used for farming in Minnesota.
34.9 	(c) "Beginning farmer" means an individual or LLC owned by an individual who:
34.10 	(1) is a resident of Minnesota;
34.11 	(2) is seeking entry, or has entered within the last ten years, into farming;
34.12 	(3) intends to farm land located within the state borders of Minnesota;
34.13 	(4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a 
34.14 	family member of the owner of the agricultural assets from whom the beginning farmer is 
34.15 	seeking to purchase or rent agricultural assets;
34.16 	(5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a 
34.17 	family member of a partner, member, shareholder, or trustee of the owner of agricultural 
34.18 	assets from whom the beginning farmer is seeking to purchase or rent agricultural assets; 
34.19 	and
34.20 	(6) meets the following eligibility requirements as determined by the authority:
34.21 	(i) has a net worth that does not exceed the limit provided under section 41B.03, 
34.22 	subdivision 3, paragraph (a), clause (2);
34.23 	(ii) provides the majority of the day-to-day physical labor and management of the farm;
34.24 	(iii) has, by the judgment of the authority, adequate farming experience or demonstrates 
34.25 	knowledge in the type of farming for which the beginning farmer seeks assistance from the 
34.26 	authority;
34.27 	(iv) demonstrates to the authority a profit potential by submitting projected earnings 
34.28 	statements;
34.29 	(v) asserts to the satisfaction of the authority that farming will be a significant source 
34.30 	of income for the beginning farmer;
35.1 	(vi) is enrolled in or has completed within ten years of their first year of farming a 
35.2 	financial management program approved by the authority or the commissioner of agriculture;
35.3 	(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility 
35.4 	requirements within the three-year certification period, in which case the beginning farmer 
35.5 	is no longer eligible for credits under this section; and
35.6 	(viii) has other qualifications as specified by the authority.
35.7 	The authority may waive the requirement in item (vi) if the participant requests a waiver 
35.8 	and has a four-year degree in an agricultural program or related field, reasonable agricultural 
35.9 	job-related experience, or certification as an adult farm management instructor.
35.10 	(d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055, 
35.11 	subdivision 1.
35.12 	(e) "Family member" means a family member within the meaning of the Internal Revenue 
35.13 	Code, section 267(c)(4).
35.14 	(f) "Farm product" means plants and animals useful to humans and includes, but is not 
35.15 	limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products, 
35.16 	poultry and poultry products, livestock, fruits, and vegetables.
35.17 	(g) "Farming" means the active use, management, and operation of real and personal 
35.18 	property for the production of a farm product.
35.19 	(h) "Owner of agricultural assets" means an individual, trust, or pass-through entity that 
35.20 	is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner 
35.21 	of agricultural assets does not mean an equipment dealer, livestock dealer defined in section 
35.22 	17A.03, subdivision 7, or comparable entity that is engaged in the business of selling 
35.23 	agricultural assets for profit and that is not engaged in farming as its primary business 
35.24 	activity. An owner of agricultural assets approved and certified by the authority under 
35.25 	subdivision 4 must notify the authority if the owner no longer meets the definition in this 
35.26 	paragraph within the three year certification period and is then no longer eligible for credits 
35.27 	under this section.
35.28 	(i) "Resident" has the meaning given in section 290.01, subdivision 7.
35.29 	(j) "Share rent agreement" means a rental agreement in which the principal consideration 
35.30 	given to the owner of agricultural assets is a predetermined portion of the production of 
35.31 	farm products produced from the rented agricultural assets and which provides for sharing 
35.32 	production costs or risk of loss, or both.

36.1 	Sec. 10. Minnesota Statutes 2022, section 41B.04, subdivision 8, is amended to read:
36.2 		Subd. 8.State participation. With respect to loans that are eligible for restructuring 
36.3 	under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall 
36.4 	enter into a participation agreement or other financial arrangement whereby it shall participate 
36.5 	in a restructured loan to the extent of 45 percent of the primary principal or $525,000
36.6 	$625,000, whichever is less. The authority's portion of the loan must be protected during 
36.7 	the authority's participation by the first mortgage held by the eligible lender to the extent 
36.8 	of its participation in the loan.

36.9 	Sec. 11. Minnesota Statutes 2022, section 41B.042, subdivision 4, is amended to read:
36.10 		Subd. 4.Participation limit; interest. The authority may participate in new 
36.11 	seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or 
36.12 	$400,000 $500,000, whichever is less. The interest rates and repayment terms of the 
36.13 	authority's participation interest may be different than the interest rates and repayment terms 
36.14 	of the seller's retained portion of the loan.

36.15 	Sec. 12. Minnesota Statutes 2022, section 41B.043, subdivision 1b, is amended to read:
36.16 		Subd. 1b.Loan participation. The authority may participate in an agricultural 
36.17 	improvement loan with an eligible lender to a farmer who meets the requirements of section 
36.18 	41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming. 
36.19 	Participation is limited to 45 percent of the principal amount of the loan or $400,000
36.20 	$500,000, whichever is less. The interest rates and repayment terms of the authority's 
36.21 	participation interest may be different than the interest rates and repayment terms of the 
36.22 	lender's retained portion of the loan.

36.23 	Sec. 13. Minnesota Statutes 2022, section 41B.045, subdivision 2, is amended to read:
36.24 		Subd. 2.Loan participation. The authority may participate in a livestock expansion 
36.25 	and modernization loan with an eligible lender to a livestock farmer who meets the 
36.26 	requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively 
36.27 	engaged in a livestock operation. A prospective borrower must have a total net worth, 
36.28 	including assets and liabilities of the borrower's spouse and dependents, of less than 
36.29 	$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 
36.30 	multiplying that amount by the cumulative inflation rate as determined by the United States 
36.31 	All-Items Consumer Price Index.
37.1 	Participation is limited to 45 percent of the principal amount of the loan or $525,000
37.2 	$625,000, whichever is less. The interest rates and repayment terms of the authority's 
37.3 	participation interest may be different from the interest rates and repayment terms of the 
37.4 	lender's retained portion of the loan.

37.5 	Sec. 14. Minnesota Statutes 2022, section 41B.047, subdivision 1, is amended to read:
37.6 		Subdivision 1.Establishment. The authority shall establish and implement a disaster 
37.7 	recovery loan program to help farmers:
37.8 	(1) clean up, repair, or replace farm structures and septic and water systems, as well as 
37.9 	replace seed, other crop inputs, feed, and livestock;
37.10 	(2) purchase watering systems, irrigation systems, and other drought mitigation systems 
37.11 	and practices, and feed when drought is the cause of the purchase;
37.12 	(3) restore farmland;
37.13 	(4) replace flocks or livestock, make building improvements, or cover the loss of revenue 
37.14 	when the replacement, improvements, or loss of revenue is due to the confirmed presence 
37.15 	of a highly contagious animal disease in a commercial poultry or game flock, or a commercial 
37.16 	livestock operation, located in Minnesota; or
37.17 	(5) cover the loss of revenue when the revenue loss is due to an infectious human disease 
37.18 	for which the governor has declared a peacetime emergency under section 12.31.