1.1 A bill for an act
1.2 relating to agriculture; expanding appropriation for the farm to school and early
1.3 care program; modifying eligibility for the farm to school and early care program;
1.4 amending Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended by Laws
1.72024, chapter 126, article 1, section 1, subdivision 4, is amended to read:
38,159,000
34,034,000
1.8Subd. 4.Agriculture, Bioenergy, and Bioproduct
1.9Advancement
1.10(a) $10,702,000 the first year and $10,702,000
1.11the second year are for the agriculture
1.12research, education, extension, and technology
1.13transfer program under Minnesota Statutes,
1.14section 41A.14. Except as provided below,
1.15the appropriation each year is for transfer to
1.16the agriculture research, education, extension,
1.17and technology transfer account under
1.18Minnesota Statutes, section 41A.14,
1.19subdivision 3, and the commissioner shall
1.20transfer funds each year to the Board of
1.21Regents of the University of Minnesota for
1.22purposes of Minnesota Statutes, section
1.2341A.14. To the extent practicable, money
1.24expended under Minnesota Statutes, section
1Section 1.
REVISOR SS/NS 25-0518003/21/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2785
NINETY-FOURTH SESSION
Authored by Vang03/24/2025
The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy 2.141A.14, subdivision 1, clauses (1) and (2),
2.2must supplement and not supplant existing
2.3sources and levels of funding. The
2.4commissioner may use up to one percent of
2.5this appropriation for costs incurred to
2.6administer the program.
2.7Of the amount appropriated for the agriculture
2.8research, education, extension, and technology
2.9transfer grant program under Minnesota
2.10Statutes, section 41A.14:
2.11(1) $600,000 the first year and $600,000 the
2.12second year are for the Minnesota Agricultural
2.13Experiment Station's agriculture rapid
2.14response fund under Minnesota Statutes,
2.15section 41A.14, subdivision 1, clause (2);
2.16(2) up to $1,000,000 the first year and up to
2.17$1,000,000 the second year are for research
2.18on avian influenza, salmonella, and other
2.19turkey-related diseases and disease prevention
2.20measures;
2.21(3) $2,250,000 the first year and $2,250,000
2.22the second year are for grants to the Minnesota
2.23Agricultural Education Leadership Council to
2.24enhance agricultural education with priority
2.25given to Farm Business Management
2.26challenge grants;
2.27(4) $450,000 the first year is for the cultivated
2.28wild rice breeding project at the North Central
2.29Research and Outreach Center to include a
2.30tenure track/research associate plant breeder;
2.31(5) $350,000 the first year and $350,000 the
2.32second year are for potato breeding;
2.33(6) $802,000 the first year and $802,000 the
2.34second year are to fund the Forever Green
2Section 1.
REVISOR SS/NS 25-0518003/21/25 3.1Initiative and protect the state's natural
3.2resources while increasing the efficiency,
3.3profitability, and productivity of Minnesota
3.4farmers by incorporating perennial and
3.5winter-annual crops into existing agricultural
3.6practices. The base for the allocation under
3.7this clause is $802,000 in fiscal year 2026 and
3.8each year thereafter. By February 1 each year,
3.9the dean of the College of Food, Agricultural
3.10and Natural Resource Sciences must submit
3.11a report to the chairs and ranking minority
3.12members of the legislative committees with
3.13jurisdiction over agriculture finance and policy
3.14and higher education detailing uses of the
3.15funds in this paragraph, including
3.16administrative costs, and the achievements
3.17these funds contributed to;
3.18(7) $350,000 each year is for farm-scale winter
3.19greenhouse research and development
3.20coordinated by University of Minnesota
3.21Extension Regional Sustainable Development
3.22Partnerships. The allocation in this clause is
3.23onetime;
3.24(8) $200,000 the second year is for research
3.25on natural stands of wild rice; and
3.26(9) $250,000 the second year is for the
3.27cultivated wild rice forward selection project
3.28at the North Central Research and Outreach
3.29Center, including a tenure track or research
3.30associate plant scientist.
3.31(b) The base for the agriculture research,
3.32education, extension, and technology transfer
3.33program is $10,352,000 in fiscal year 2026
3.34and $10,352,000 in fiscal year 2027.
3Section 1.
REVISOR SS/NS 25-0518003/21/25 4.1(c) $23,332,000 the first year is for the
4.2agricultural growth, research, and innovation
4.3program under Minnesota Statutes, section
4.441A.12. Except as provided below, the
4.5commissioner may allocate this appropriation
4.6among the following areas: facilitating the
4.7start-up, modernization, improvement, or
4.8expansion of livestock operations, including
4.9beginning and transitioning livestock
4.10operations with preference given to robotic
4.11dairy-milking equipment; assisting
4.12value-added agricultural businesses to begin
4.13or expand, to access new markets, or to
4.14diversify, including aquaponics systems, with
4.15preference given to hemp fiber processing
4.16equipment; facilitating the start-up,
4.17modernization, or expansion of other
4.18beginning and transitioning farms, including
4.19by providing loans under Minnesota Statutes,
4.20section 41B.056; sustainable agriculture
4.21on-farm research and demonstration; the
4.22development or expansion of food hubs and
4.23other alternative community-based food
4.24distribution systems; enhancing renewable
4.25energy infrastructure and use; crop research,
4.26including basic and applied turf seed research;
4.27Farm Business Management tuition assistance;
4.28and good agricultural practices and good
4.29handling practices certification assistance. The
4.30commissioner may use up to 6.5 percent of
4.31this appropriation for costs incurred to
4.32administer the program.
4.33Of the amount appropriated for the agricultural
4.34growth, research, and innovation program
4.35under Minnesota Statutes, section 41A.12:
4Section 1.
REVISOR SS/NS 25-0518003/21/25 5.1(1) $1,000,000 the first year is for distribution
5.2in equal amounts to each of the state's county
5.3fairs to preserve and promote Minnesota
5.4agriculture;
5.5(2) $5,750,000 the first year is for incentive
5.6payments under Minnesota Statutes, sections
5.741A.16, 41A.17, 41A.18, and 41A.20.
5.8Notwithstanding Minnesota Statutes, section
5.916A.28, the first year appropriation is
5.10available until June 30, 2025. If this
5.11appropriation exceeds the total amount for
5.12which all producers are eligible in a fiscal
5.13year, the balance of the appropriation is
5.14available for other purposes under this
5.15paragraph;
5.16(3) $3,375,000 the first year is for grants that
5.17enable retail petroleum dispensers, fuel storage
5.18tanks, and other equipment to dispense
5.19biofuels to the public in accordance with the
5.20biofuel replacement goals established under
5.21Minnesota Statutes, section 239.7911. A retail
5.22petroleum dispenser selling petroleum for use
5.23in spark ignition engines for vehicle model
5.24years after 2000 is eligible for grant money
5.25under this clause if the retail petroleum
5.26dispenser has no more than 10 retail petroleum
5.27dispensing sites and each site is located in
5.28Minnesota. The grant money must be used to
5.29replace or upgrade equipment that does not
5.30have the ability to be certified for E25. A grant
5.31award must not exceed 65 percent of the cost
5.32of the appropriate technology. A grant award
5.33must not exceed $200,000 per station. The
5.34commissioner must cooperate with biofuel
5.35stakeholders in the implementation of the grant
5Section 1.
REVISOR SS/NS 25-0518003/21/25 6.1program. The commissioner, in cooperation
6.2with any economic or community development
6.3financial institution and any other entity with
6.4which the commissioner contracts, must
6.5submit a report on the biofuels infrastructure
6.6financial assistance program by January 15 of
6.7each year to the chairs and ranking minority
6.8members of the legislative committees and
6.9divisions with jurisdiction over agriculture
6.10policy and finance. The annual report must
6.11include but not be limited to a summary of the
6.12following metrics: (i) the number and types
6.13of projects financed; (ii) the amount of dollars
6.14leveraged or matched per project; (iii) the
6.15geographic distribution of financed projects;
6.16(iv) any market expansion associated with
6.17upgraded infrastructure; (v) the demographics
6.18of the areas served; (vi) the costs of the
6.19program; and (vii) the number of grants to
6.20minority-owned or female-owned businesses;
6.21(4) $1,250,000 the first year is for grants to
6.22facilitate the start-up, modernization, or
6.23expansion of meat, poultry, egg, and milk
6.24processing facilities. A grant award under this
6.25clause must not exceed $200,000. Any
6.26unencumbered balance at the end of the second
6.27year does not cancel until June 30, 2026, and
6.28may be used for other purposes under this
6.29paragraph;
6.30(5) $1,150,000 the first year is for providing
6.31more fruits, vegetables, meat, poultry, grain,
6.32and dairy for children in school and early
6.33childhood education settings, including, at the
6.34commissioner's discretion, providing grants
6.35to reimburse schools and early childhood
6Section 1.
REVISOR SS/NS 25-0518003/21/25 7.1education and child care providers for
7.2purchasing equipment and agricultural
7.3products. Organizations must participate in
7.4the National School Lunch Program or the
7.5Child and Adult Care Food Program to be
7.6eligible. Of the amount appropriated, $150,000
7.7is for a statewide coordinator of
7.8farm-to-institution strategy and programming.
7.9The coordinator must consult with relevant
7.10stakeholders and provide technical assistance
7.11and training for participating farmers and
7.12eligible grant recipients;
7.13(6) $2,000,000 the first year is for urban youth
7.14agricultural education or urban agriculture
7.15community development;
7.16(7) $1,000,000 the first year is for the good
7.17food access program under Minnesota
7.18Statutes, section 17.1017; and
7.19(8) $225,000 the first year is to provide grants
7.20to secondary career and technical education
7.21programs for the purpose of offering
7.22instruction in meat cutting and butchery.
7.23Notwithstanding Minnesota Statutes, section
7.2416B.98, subdivision 14, the commissioner may
7.25use up to 6.5 percent of this appropriation for
7.26administrative costs. This is a onetime
7.27appropriation. Grants may be used for costs,
7.28including but not limited to:
7.29(i) equipment required for a meat cutting
7.30program;
7.31(ii) facility renovation to accommodate meat
7.32cutting; and
7.33(iii) training faculty to teach the fundamentals
7.34of meat processing.
7Section 1.
REVISOR SS/NS 25-0518003/21/25 8.1A grant recipient may be awarded a grant of
8.2up to $75,000 and may use up to ten percent
8.3of the grant for faculty training. Priority may
8.4be given to applicants who are coordinating
8.5with meat cutting and butchery programs at
8.6Minnesota State Colleges and Universities
8.7institutions or with local industry partners.
8.8By January 15, 2025, the commissioner must
8.9report to the chairs and ranking minority
8.10members of the legislative committees with
8.11jurisdiction over agriculture finance and
8.12education finance by listing the grants made
8.13under this paragraph by county and noting the
8.14number and amount of grant requests not
8.15fulfilled. The report may include additional
8.16information as determined by the
8.17commissioner, including but not limited to
8.18information regarding the outcomes produced
8.19by these grants. If additional grants are
8.20awarded under this paragraph that were not
8.21covered in the report due by January 15, 2025,
8.22the commissioner must submit an additional
8.23report to the chairs and ranking minority
8.24members of the legislative committees with
8.25jurisdiction over agriculture finance and
8.26education finance regarding all grants issued
8.27under this paragraph by November 1, 2025.
8.28Notwithstanding Minnesota Statutes, section
8.2916A.28, any unencumbered balance does not
8.30cancel at the end of the first year and is
8.31available for the second year, and
8.32appropriations encumbered under contract on
8.33or before June 30, 2025, for agricultural
8.34growth, research, and innovation grants are
8.35available until June 30, 2028.
8Section 1.
REVISOR SS/NS 25-0518003/21/25 9.1(d) $27,457,000 the second year is for the
9.2agricultural growth, research, and innovation
9.3program under Minnesota Statutes, section
9.441A.12. Except as provided below, the
9.5commissioner may allocate this appropriation
9.6among the following areas: facilitating the
9.7start-up, modernization, improvement, or
9.8expansion of livestock operations, including
9.9beginning and transitioning livestock
9.10operations with preference given to robotic
9.11dairy-milking equipment; assisting
9.12value-added agricultural businesses to begin
9.13or expand, to access new markets, or to
9.14diversify, including aquaponics systems, with
9.15preference given to hemp fiber processing
9.16equipment; facilitating the start-up,
9.17modernization, or expansion of other
9.18beginning and transitioning farms, including
9.19by providing loans under Minnesota Statutes,
9.20section 41B.056; sustainable agriculture
9.21on-farm research and demonstration; the
9.22development or expansion of food hubs and
9.23other alternative community-based food
9.24distribution systems; enhancing renewable
9.25energy infrastructure and use; crop research,
9.26including basic and applied turf seed research;
9.27Farm Business Management tuition assistance;
9.28and good agricultural practices and good
9.29handling practices certification assistance. The
9.30commissioner may use up to 6.5 percent of
9.31this appropriation for costs incurred to
9.32administer the program.
9.33Of the amount appropriated for the agricultural
9.34growth, research, and innovation program
9.35under Minnesota Statutes, section 41A.12:
9Section 1.
REVISOR SS/NS 25-0518003/21/25 10.1(1) $1,000,000 the second year is for
10.2distribution in equal amounts to each of the
10.3state's county fairs to preserve and promote
10.4Minnesota agriculture;
10.5(2) $5,750,000 the second year is for incentive
10.6payments under Minnesota Statutes, sections
10.741A.16, 41A.17, 41A.18, and 41A.20.
10.8Notwithstanding Minnesota Statutes, section
10.916A.28, this appropriation is available until
10.10June 30, 2027. If this appropriation exceeds
10.11the total amount for which all producers are
10.12eligible in a fiscal year, the balance of the
10.13appropriation is available for other purposes
10.14under this paragraph. The base under this
10.15clause is $3,000,000 in fiscal year 2026 and
10.16each year thereafter;
10.17(3) $3,375,000 the second year is for grants
10.18that enable retail petroleum dispensers, fuel
10.19storage tanks, and other equipment to dispense
10.20biofuels to the public in accordance with the
10.21biofuel replacement goals established under
10.22Minnesota Statutes, section 239.7911. A retail
10.23petroleum dispenser selling petroleum for use
10.24in spark ignition engines for vehicle model
10.25years after 2000 is eligible for grant money
10.26under this clause if the retail petroleum
10.27dispenser has no more than ten retail
10.28petroleum dispensing sites and each site is
10.29located in Minnesota. The grant money must
10.30be used to replace or upgrade equipment that
10.31does not have the ability to be certified for
10.32E25. A grant award must not exceed 65
10.33percent of the cost of the appropriate
10.34technology. A grant award must not exceed
10.35$200,000 per station. The commissioner must
10Section 1.
REVISOR SS/NS 25-0518003/21/25 11.1cooperate with biofuel stakeholders in the
11.2implementation of the grant program. The
11.3commissioner, in cooperation with any
11.4economic or community development
11.5financial institution and any other entity with
11.6which the commissioner contracts, must
11.7submit a report on the biofuels infrastructure
11.8financial assistance program by January 15 of
11.9each year to the chairs and ranking minority
11.10members of the legislative committees and
11.11divisions with jurisdiction over agriculture
11.12policy and finance. The annual report must
11.13include but not be limited to a summary of the
11.14following metrics: (i) the number and types
11.15of projects financed; (ii) the amount of money
11.16leveraged or matched per project; (iii) the
11.17geographic distribution of financed projects;
11.18(iv) any market expansion associated with
11.19upgraded infrastructure; (v) the demographics
11.20of the areas served; (vi) the costs of the
11.21program; and (vii) the number of grants to
11.22minority-owned or female-owned businesses.
11.23The base under this clause is $3,000,000 for
11.24fiscal year 2026 and each year thereafter;
11.25(4) $1,250,000 the second year is for grants
11.26to facilitate the start-up, modernization, or
11.27expansion of meat, poultry, egg, and milk
11.28processing facilities. A grant award under this
11.29clause must not exceed $200,000. Any
11.30unencumbered balance at the end of the second
11.31year does not cancel until June 30, 2027, and
11.32may be used for other purposes under this
11.33paragraph. The base under this clause is
11.34$250,000 in fiscal year 2026 and each year
11.35thereafter;
11Section 1.
REVISOR SS/NS 25-0518003/21/25 12.1(5) $1,275,000 $5,275,000 the second year is
12.2for providing more fruits, vegetables, meat,
12.3poultry, grain, and dairy for children in school
12.4and early childhood education settings,
12.5including, at the commissioner's discretion,
12.6providing grants to reimburse schools and
12.7early childhood education and child care
12.8providers for purchasing equipment and
12.9agricultural products. Organizations must
12.10participate in the National School Lunch
12.11Program or the Child and Adult Care Food
12.12Program to be eligible. To be eligible for
12.13grants under this clause, organizations must:
12.14(i) participate in the National School Lunch
12.15Program or the Child and Adult Care Food
12.16Program; (ii) source at least 70 percent of food
12.17from within the geographic boundaries of
12.18Minnesota; and (iii) source at least 70 percent
12.19of food from farmers with limited market
12.20access, as defined by Minnesota Statutes,
12.21section 17.133, subdivision 1, paragraph (e).
12.22Of the amount appropriated, $150,000 is for
12.23a statewide coordinator of farm-to-institution
12.24strategy and programming. The coordinator
12.25must consult with relevant stakeholders and
12.26provide technical assistance and training for
12.27participating farmers and eligible grant
12.28recipients. The appropriation under this clause
12.29is available until June 30, 2027. The base
12.30under this clause is $1,294,000 in fiscal year
12.312026 and each year thereafter;
12.32(6) $4,000,000 the second year is for Dairy
12.33Assistance, Investment, Relief Initiative
12.34(DAIRI) grants and other forms of financial
12.35assistance to Minnesota dairy farms that enroll
12.36in coverage under a federal dairy risk
12Section 1.
REVISOR SS/NS 25-0518003/21/25 13.1protection program and produced no more
13.2than 16,000,000 pounds of milk in 2022. The
13.3commissioner must make DAIRI payments
13.4based on the amount of milk produced in
13.52022, up to 5,000,000 pounds per participating
13.6farm, at a rate determined by the commissioner
13.7within the limits of available funding. Any
13.8unencumbered balance on June 30, 2026, may
13.9be used for other purposes under this
13.10paragraph. The allocation in this clause is
13.11onetime;
13.12(7) (6) $2,000,000 the second year is for urban
13.13youth agricultural education or urban
13.14agriculture community development;
13.15(8) (7) $1,000,000 the second year is for the
13.16good food access program under Minnesota
13.17Statutes, section 17.1017; and
13.18(9) (8) $225,000 the second year is for the
13.19protecting livestock grant program for
13.20producers to support the installation of
13.21measures to prevent the transmission of avian
13.22influenza. For the appropriation in this
13.23paragraph, a grant applicant must document
13.24a cost-share of 20 percent. An applicant's
13.25cost-share amount may be reduced up to
13.26$2,000 to cover time and labor costs.
13.27Notwithstanding Minnesota Statutes, section
13.2816B.98, subdivision 14, the commissioner may
13.29use up to 6.5 percent of this appropriation for
13.30administrative costs. This appropriation is
13.31available until June 30, 2027. This is a onetime
13.32appropriation. Notwithstanding Minnesota
13.33Statutes, section 16A.28, this appropriation
13.34does not cancel at the end of the second year
13.35and is available until June 30, 2027.
13Section 1.
REVISOR SS/NS 25-0518003/21/25 14.1Appropriations encumbered under contract on
14.2or before June 30, 2027, for agricultural
14.3growth, research, and innovation grants are
14.4available until June 30, 2030.
14.5(e) The base for the agricultural growth,
14.6research, and innovation program is
14.7$17,582,000 in fiscal year 2026 and each year
14.8thereafter and includes $200,000 each year for
14.9cooperative development grants.
14.10 EFFECTIVE DATE.This section is effective the day following final enactment.
14Section 1.
REVISOR SS/NS 25-0518003/21/25