Meat processing training and retention incentive grantees allowed more time to complete projects.

A bill for an act

relating to agriculture; allowing meat processing training and retention incentive

grantees more time to complete projects; amending Laws 2023, chapter 43, article

1, section 2, subdivision 5, as amended.

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

Section 1.

Laws 2023, chapter 43, article 1, section 2, subdivision 5, as amended by Laws

2024, chapter 126, article 1, section 1, subdivision 5, is amended to read:

Subd. 5.

Administration and Financial

Assistance

16,643,000

14,587,000

(a) $474,000 the first year and $474,000 the

second year are for payments to county and

district agricultural societies and associations

under Minnesota Statutes, section
38.02,

subdivision 1
. Aid payments to county and

district agricultural societies and associations

must be disbursed no later than July 15 of each

year. These payments are the amount of aid

from the state for an annual fair held in the

previous calendar year.

(b) $350,000 the first year and $350,000 the

second year are for grants to the Minnesota

Agricultural Education and Leadership

Council for programs of the council under

Minnesota Statutes, chapter 41D. The base for

this appropriation is $250,000 in fiscal year

2026 and each year thereafter.

(c) $2,000 the first year is for a grant to the

Minnesota State Poultry Association. This is

a onetime appropriation. Notwithstanding

Minnesota Statutes, section
16A.28
, any

unencumbered balance does not cancel at the

end of the first year and is available for the

second year.

(d) $18,000 the first year and $18,000 the

second year are for grants to the Minnesota

Livestock Breeders Association. This is a

onetime appropriation.

(e) $60,000 the first year and $60,000 the

second year are for grants to the Northern

Crops Institute that may be used to purchase

equipment. This is a onetime appropriation.

(f) $34,000 the first year and $34,000 the

second year are for grants to the Minnesota

State Horticultural Society. This is a onetime

appropriation.

(g) $25,000 the first year and $25,000 the

second year are for grants to the Center for

Rural Policy and Development. This is a

onetime appropriation.

(h) $75,000 the first year and $75,000 the

second year are appropriated from the general

fund to the commissioner of agriculture for

grants to the Minnesota Turf Seed Council for

basic and applied research on: (1) the

improved production of forage and turf seed

related to new and improved varieties; and (2)

native plants, including plant breeding,

nutrient management, pest management,

disease management, yield, and viability. The

Minnesota Turf Seed Council may subcontract

with a qualified third party for some or all of

the basic or applied research. Any

unencumbered balance does not cancel at the

end of the first year and is available in the

second year. The Minnesota Turf Seed Council

must prepare a report outlining the use of the

grant money and related accomplishments. No

later than January 15, 2025, the council must

submit the report to the chairs and ranking

minority members of the legislative

committees and divisions with jurisdiction

over agriculture finance and policy. This is a

onetime appropriation.

(i) $100,000 the first year and $100,000 the

second year are for grants to GreenSeam for

assistance to agriculture-related businesses to

support business retention and development,

business attraction and creation, talent

development and attraction, and regional

branding and promotion. These are onetime

appropriations. No later than December 1,

2024, and December 1, 2025, GreenSeam

must report to the chairs and ranking minority

members of the legislative committees with

jurisdiction over agriculture and rural

development with information on new and

existing businesses supported, number of new

jobs created in the region, new educational

partnerships and programs supported, and

regional branding and promotional efforts.

(j) $1,950,000 the first year and $1,950,000

the second year are for grants to Second

Harvest Heartland on behalf of Minnesota's

six Feeding America food banks for the

following purposes:

(1) at least $850,000 each year must be

allocated to purchase milk for distribution to

Minnesota's food shelves and other charitable

organizations that are eligible to receive food

from the food banks. Milk purchased under

the grants must be acquired from Minnesota

milk processors and based on low-cost bids.

The milk must be allocated to each Feeding

America food bank serving Minnesota

according to the formula used in the

distribution of United States Department of

Agriculture commodities under The

Emergency Food Assistance Program. Second

Harvest Heartland may enter into contracts or

agreements with food banks for shared funding

or reimbursement of the direct purchase of

milk. Each food bank that receives funding

under this clause may use up to two percent

for administrative expenses. Notwithstanding

Minnesota Statutes, section
16A.28
, any

unencumbered balance the first year does not

cancel and is available the second year;

(2) to compensate agricultural producers and

processors for costs incurred to harvest and

package for transfer surplus fruits, vegetables,

and other agricultural commodities that would

otherwise go unharvested, be discarded, or be

sold in a secondary market. Surplus

commodities must be distributed statewide to

food shelves and other charitable organizations

that are eligible to receive food from the food

banks. Surplus food acquired under this clause

must be from Minnesota producers and

processors. Second Harvest Heartland may

use up to 15 percent of each grant awarded

under this clause for administrative and

transportation expenses; and

(3) to purchase and distribute protein products,

including but not limited to pork, poultry, beef,

dry legumes, cheese, and eggs to Minnesota's

food shelves and other charitable organizations

that are eligible to receive food from the food

banks. Second Harvest Heartland may use up

to two percent of each grant awarded under

this clause for administrative expenses. Protein

products purchased under the grants must be

acquired from Minnesota processors and

producers.

Second Harvest Heartland must submit

quarterly reports to the commissioner and the

chairs and ranking minority members of the

legislative committees with jurisdiction over

agriculture finance in the form prescribed by

the commissioner. The reports must include

but are not limited to information on the

expenditure of funds, the amount of milk or

other commodities purchased, and the

organizations to which this food was

distributed. The base for this appropriation is

$1,700,000 for fiscal year 2026 and each year

thereafter.

(k) $25,000 the first year and $25,000 the

second year are for grants to the Southern

Minnesota Initiative Foundation to promote

local foods through an annual event that raises

public awareness of local foods and connects

local food producers and processors with

potential buyers.

(l) $300,000 the first year and $300,000 the

second year are for grants to The Good Acre

for the Local Emergency Assistance Farmer

Fund (LEAFF) program to compensate

emerging farmers for crops donated to hunger

relief organizations in Minnesota. This is a

onetime appropriation.

(m) $750,000 the first year and $750,000 the

second year are to expand the Emerging

Farmers Office and provide services to

beginning and emerging farmers to increase

connections between farmers and market

opportunities throughout the state. This

appropriation may be used for grants,

translation services, training programs, or

other purposes in line with the

recommendations of the Emerging Farmer

Working Group established under Minnesota

Statutes, section
17.055, subdivision 1
. The

base for this appropriation is $1,000,000 in

fiscal year 2026 and each year thereafter.

(n) $50,000 the first year is to provide

technical assistance and leadership in the

development of a comprehensive and

well-documented state aquaculture plan. The

commissioner must provide the state

aquaculture plan to the legislative committees

with jurisdiction over agriculture finance and

policy by February 15, 2025.

(o) $337,000 the first year and $337,000 the

second year are for farm advocate services.

Of these amounts, $50,000 the first year and

$50,000 the second year are for the

continuation of the farmland transition

programs and may be used for grants to

farmland access teams to provide technical

assistance to potential beginning farmers.

Farmland access teams must assist existing

farmers and beginning farmers with

transitioning farm ownership and farm

operation. Services provided by teams may

include but are not limited to mediation

assistance, designing contracts, financial

planning, tax preparation, estate planning, and

housing assistance.

(p) $260,000 the first year and $260,000 the

second year are for a pass-through grant to

Region Five Development Commission to

provide, in collaboration with Farm Business

Management, statewide mental health

counseling support to Minnesota farm

operators, families, and employees, and

individuals who work with Minnesota farmers

in a professional capacity. Region Five

Development Commission may use up to 6.5

percent of the grant awarded under this

paragraph for administration.

(q) $1,000,000 the first year is for transfer to

the agricultural emergency account established

under Minnesota Statutes, section
17.041
.

(r) $1,084,000 the first year and $500,000 the

second year are to support IT modernization

efforts, including laying the technology

foundations needed for improving customer

interactions with the department for licensing

and payments. This is a onetime appropriation.

(s) $275,000 the first year is for technical

assistance grants to certified community

development financial institutions that

participate in United States Department of

Agriculture loan or grant programs for small

or emerging farmers, including but not limited

to the Increasing Land, Capital, and Market

Access Program. For purposes of this

paragraph, "emerging farmer" has the meaning

given in Minnesota Statutes, section
17.055,

subdivision 1
. The commissioner may use up

to 6.5 percent of this appropriation for costs

incurred to administer the program.

Notwithstanding Minnesota Statutes, section

16A.28
, any unencumbered balance does not

cancel at the end of the first year and is

available in the second year. This is a onetime

appropriation.

(t) $1,425,000 the first year and $1,425,000

the second year are for transfer to the

agricultural and environmental revolving loan

account established under Minnesota Statutes,

section
17.117, subdivision 5a
, for low-interest

loans under Minnesota Statutes, section

17.117
.

(u) $150,000 the first year and $150,000 the

second year are for administrative support for

the Rural Finance Authority.

(v) The base in fiscal years 2026 and 2027 is

$150,000 each year to coordinate

climate-related activities and services within

the Department of Agriculture and

counterparts in local, state, and federal

agencies and to hire a full-time climate

implementation coordinator. The climate

implementation coordinator must coordinate

efforts seeking federal funding for Minnesota's

agricultural climate adaptation and mitigation

efforts and develop strategic partnerships with

the private sector and nongovernment

organizations.

(w) $1,200,000 the first year and $930,000 the

second year are to maintain the current level

of service delivery. The base for this

appropriation is $1,065,000 in fiscal year 2026

and $1,065,000 in fiscal year 2027 and each

year thereafter.

(x) $250,000 the first year is for a grant to the

Board of Regents of the University of

Minnesota to purchase equipment for the

Veterinary Diagnostic Laboratory to test for

chronic wasting disease, African swine fever,

avian influenza, and other animal diseases.

The Veterinary Diagnostic Laboratory must

report expenditures under this paragraph to

the legislative committees with jurisdiction

over agriculture finance and higher education

with a report submitted by January 3, 2024,

and a final report submitted by December 31,

2024. The reports must include a list of

equipment purchased, including the cost of

each item.

(y) $1,000,000 the first year and $1,000,000

the second year are to award and administer

down payment assistance grants under

Minnesota Statutes, section
17.133
, with

priority given to eligible applicants with no

more than $100,000 in annual gross farm

product sales and eligible applicants who are

producers of industrial hemp, cannabis, or one

or more of the following specialty crops as

defined by the United States Department of

Agriculture for purposes of the specialty crop

block grant program: fruits and vegetables,

tree nuts, dried fruits, medicinal plants,

culinary herbs and spices, horticulture crops,

floriculture crops, and nursery crops.

Notwithstanding Minnesota Statutes, section

16A.28
, any unencumbered balance at the end

of the first year does not cancel and is

available in the second year and appropriations

encumbered under contract by June 30, 2025,

are available until June 30, 2027.

(z) $222,000 the first year and $322,000 the

second year are for meat processing training

and retention incentive grants under section

5. The commissioner may use up to 6.5

percent of this appropriation for costs incurred

to administer the program.
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Notwithstanding

Minnesota Statutes, section 16A.28,

subdivision 6, grant projects may continue for

up to three years.
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Notwithstanding Minnesota

Statutes, section
16A.28
, any unencumbered

balance does not cancel at the end of the first

year and is available in the second year. This

is a onetime appropriation.

(aa) $300,000 the first year and $300,000 the

second year are for transfer to the Board of

Regents of the University of Minnesota to

evaluate, propagate, and maintain the genetic

diversity of oilseeds, grains, grasses, legumes,

and other plants including flax, timothy,

barley, rye, triticale, alfalfa, orchard grass,

clover, and other species and varieties that

were in commercial distribution and use in

Minnesota before 1970, excluding wild rice.

This effort must also protect traditional seeds

brought to Minnesota by immigrant

communities. This appropriation includes

funding for associated extension and outreach

to small and Black, Indigenous, and People of

Color (BIPOC) farmers. This is a onetime

appropriation.

(bb) $300,000 the second year is to award and

administer beginning farmer equipment and

infrastructure grants under Minnesota Statutes,

section
17.055
. This is a onetime

appropriation.

(cc) $25,000 the first year is for the credit

market report. Notwithstanding Minnesota

Statutes, section
16A.28
, any unencumbered

balance does not cancel at the end of the first

year and is available in the second year. This

is a onetime appropriation.

(dd) The commissioner shall continue to

increase connections with ethnic minority and

immigrant farmers to farming opportunities

and farming programs throughout the state.

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EFFECTIVE DATE.

new text end

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This section is effective the day following final enactment.

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