MinnesotaHF 244694th Legislature, 2025-2026HouseWALLET

Agriculture and broadband development policy and finance bill.

Sponsored By: Paul Anderson (Republican)

Became Law

Agriculture Finance and PolicyRules and Administration for comparison with SF2458

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Bill Overview

Analyzed Economic Effects

57 provisions identified: 28 benefits, 14 costs, 15 mixed.

Livestock grants reach more farm operators

Livestock investment grants cover 50% of the first $20,000 in qualifying costs and 20% of the next $200,000. Each grant is capped at $50,000; projects can last three years, and applicants can receive multiple grants, with first-time recipients preferred. Eligible livestock include animals raised for fiber, meat, or by-products for sale, or as breeding stock. Examples include cattle, swine, poultry, goats, farmed deer, ostrich-type birds, bison, sheep, horses, aquaculture, and llamas. Minnesota residents, Tribal governments, and legally eligible farm entities can apply as principal operators, with required feedlot registration and expense documentation.

State shares financing for farm loans

Minnesota can finance up to 45% of new beginning-farmer real estate loans, seller-sponsored loans, and farm improvement loans. Each loan must be between $50,000 and $500,000. For accepted farm debt restructuring loans, the state must participate in up to 45% of the main principal. Those loans must qualify for restructuring and range from $50,000 to $625,000. Beginning-farmer and improvement loans require eligible lenders; improvement borrowers must actively farm and meet the state’s borrower requirements.

State shares livestock expansion loan costs

Minnesota can finance up to 45% of a livestock expansion or modernization loan between $50,000 and $625,000. Borrowers must actively run a livestock operation, meet state borrower requirements, and use an eligible lender. Household net worth must be below an inflation-adjusted limit that was $1.7 million in 2017. The calculation includes the borrower’s spouse’s and dependents’ assets and debts.

Counseling support for Minnesota farm families

The law provides $260,000 in each fiscal year, 2026 and 2027, for statewide mental health counseling support. The Region Five Development Commission provides support with Farm Business Management. Services support farm operators, their families and employees, and professionals who work with Minnesota farmers. The commission can use up to 6.5% of the grant for administration.

Milk funding for food shelf households

The law provides $1.7 million each fiscal year in 2026 and 2027 through Second Harvest Heartland for six food banks. At least $850,000 each year must buy milk from Minnesota processors chosen through low-cost bids. Food banks share the milk using a federal food-distribution formula and send it to eligible food shelves and charities. A receiving food bank can use up to 2% for administration. This supports milk access for households served by those groups, without setting an individual benefit amount.

Pollution-reduction loans reach more landowners

Landowners can seek low- or no-interest loans through the agriculture best management practices loan program. Financing supports farm and other practices that reduce environmental pollution. Eligibility is no longer limited to rural landowners.

Dairy farmers get business planning help

The law provides $634,000 in each of fiscal years 2026 and 2027 to continue dairy development assistance. The program supports dairy profitability teams and business planning grants. Eligible Minnesota dairy farmers and businesses can receive help, but this provision sets no individual award amount.

Farm buyers get purchase and transition help

Farm down-payment assistance gets $1 million in each of fiscal years 2026 and 2027 for eligible farm buyers. Priority goes to applicants with annual farm-product sales of $100,000 or less and eligible hemp, cannabis, or specified specialty-crop producers. Uncommitted first-year funds carry forward; grants contracted by June 30, 2027, can receive funds through June 30, 2029. A separate $50,000 annual set-aside from farm advocate funding supports farmland transition programs and grants to access teams. These teams help existing and beginning farmers with mediation, contracts, finances, taxes, estate planning, and housing during ownership or operating changes.

Farm microloans can fund land purchases

Minnesota’s agricultural microloan program is no longer limited to a pilot. Farmers can seek financing to buy agricultural land or produce specialty crops or eligible livestock. This provision does not state loan amounts or individual borrower requirements.

Farmers get livestock and crop-loss help

In each of fiscal years 2026 and 2027, the law provides $175,000 for covered livestock destroyed or crippled. It also provides $155,000 each year for eligible crop-damage claims. Either program can use second-year funds early when first-year money runs short. Up to $5,000 annually supports livestock valuation work, while up to $10,000 supports crop-claim work and agent training. Up to $40,000 of annual crop-damage funding can instead provide grants to protect stored crops from elk.

Farmers get soil health grant funding

Soil health grants get $639,000 in each of fiscal years 2026 and 2027. Eligible recipients can receive up to $50,000 per year. Uncommitted first-year money carries forward. Funds contracted by June 30, 2027, remain available through June 30, 2029.

Loans support farm and environmental projects

The agricultural and environmental revolving loan account gets $1.425 million in each of fiscal years 2026 and 2027. This money supports low-interest loans for eligible agricultural and environmental projects. The funding provision does not set individual loan amounts, interest rates, or repayment terms.

More services for beginning and emerging farmers

The law provides $1 million in each of fiscal years 2026 and 2027 to expand the Emerging Farmers Office. The money supports statewide market connections for beginning and emerging farmers. It can fund grants, translation, training, and other services recommended by the emerging farmer working group.

More funding available for water-quality loans

The law makes up to $280 million from the clean water revolving fund available for appropriation to the water-quality loan program. The Public Facilities Authority decides the amount, which cannot exceed the fund balance. The agriculture commissioner can also receive legislative funding, grants, and money from other sources. This is program financing, not a guaranteed loan amount for any applicant.

Disaster farm loans limit household wealth

Agricultural disaster loan borrowers must have household net worth below $5 million, including their spouse’s and dependents’ assets and debts. At least 25% of the borrower’s annual gross income in the past year must come from farming. Borrowers must show they can repay and meet existing program requirements. They must certify that a qualifying disaster, specified disease, human disease emergency, or authority-recognized emergency caused the loss.

Diseased seed potato crops lose certification

One plant or stored tuber with bacterial ring rot or potato spindle tuber viroid requires rejection of the entire field or lot. Certification requires at least two growing-season inspections, including a final ring-rot check. Growers must arrange laboratory testing if grower practices or uncontrollable events prevent that final check. Fields also lose eligibility for excess disease, extensive weak or missing plants, poor inspection conditions, or contamination risks from nearby discarded-potato piles. Growers must remove infected plants before final inspection when listed diseases exceed allowed levels; rejected lots cannot be sold as certified seed.

Farm opportunity loans have narrower uses

Farm opportunity loans no longer cover the specified environmental best practices or agricultural-input management for environmental improvements. Eligible uses include adding value to Minnesota crops or livestock and increasing on-farm energy production. Borrowers must actively farm and have net worth below an inflation-adjusted limit that was $1.7 million in 2017. The test counts the assets and debts of the borrower’s spouse and dependents.

Food businesses pay for repeat inspections

Beginning August 1, 2025, food handlers can be charged for reinspections after major violations or uncorrected equipment or facility problems. This includes custom exempt and home food handlers. A first reinspection costs $250 for food sales under $1 million, or $300 for sales over $1 million. Later reinspections for the same violation cost the greater of $500 or half the current license fee. Home food handlers instead pay $50 for the first reinspection and $100 for later reinspections of the same violation.

Seed potato growers face certification deadlines

Seed potato applications are due before June 16, with a 10% late fee for postmarks June 16–30. Applications need a North American Health Certificate and the applicable shipping-point, bulk-seed, or origin certificate. Growers must meet disease limits, certify all farm plantings, separate lots, and show approved class-system origins for recertification. Inspection requires authorized varieties and lots, and enough local acreage for fees to cover costs. Samples receive visual checks except for prenuclear potatoes; varieties without visible signs of a pathogen need laboratory testing. A deadline extension requires a written request before June 16 and qualifying widespread or area-affecting special circumstances.

Seed potato growers must separate storage

Certified seed potato lots must be stored to prevent contamination; sharing grading or handling equipment with other potatoes requires lot rejection. Each lot needs a storage and yield report by November 1. Shared-storage bins must show the grower’s name and address, variety, and quantity. Before using public storage outside their control, growers must provide its location, bin details, and any available warehouse receipt. Contracted handlers must label bins properly, or tags and bulk certificates cannot issue. Deadline extensions require qualifying harvest or storage problems affecting an area or many growers and a written request before November 1.

Potato growers face revised enforcement rules

Potato growers must register fields and keep seasonal records for every planted lot, including variety, location, and seed source. They must file records as directed, allow inspection during normal business hours, and provide records subject to commissioner subpoenas. Seed-potato activities now fall under the state's Chapter 18J administration, inspection, licensing, liability, and enforcement framework. The law removes the old $100-per-acre restricted-area penalty and listed misdemeanor and gross-misdemeanor penalties, including the repeat-offense handling restriction.

Seed potato classes require stricter controls

Seed potato classes have specific testing, growing, isolation, storage, and source rules. Prenuclear potatoes need tested pathogen-free sources and sanitary screened facilities; growing-season tests cover at least 1% of each lot or ten plants or tubers, whichever is greater. Greenhouse tubers keep prenuclear status for only one year at the same operation, isolated from field-grown tubers. Generation 1 needs identifiable family units and separate lot storage; later generations come from the preceding class. Ring rot and potato spindle tuber viroid have 0% tolerance in every class. Variety mixtures are limited to 0% through Generation 2, 0.1% for Generations 3–5, and 0.2% for Generation 6 and certified class. Generation 1 can skip winter testing when growing-season leaf tests meet the required limits.

Seed potato growers face revised certification

The law replaces listed older seed-potato rules covering certification, production, applications, testing, storage, grading, and fees. Eligible planting classes include Prenuclear, Generations 1–5, and experimental; Certified and Generation 6 need commissioner approval that they pose no serious disease threat. Certification includes field inspection and post-harvest inspection when possible; laboratory production requires checks of facilities, procedures, protocols, and potatoes after release. Harvested-tuber inspection includes observation and, on request, evaluation of quality and condition. Minnesota can make inspection and certification agreements, including services in states lacking certification programs; each agreement must be reported to designated legislative leaders and the state budget commissioner.

Store financing comes with food-access rules

The renamed Food Retail Improvement and Development Program offers financing and technical help to stores serving communities with unmet food needs. Applicants must show community support, ability to run a lasting project, and ability to repay any repayable financing. For at least five years, recipients must accept SNAP and meet data and reporting rules. They must devote at least 30% of retail space to affordable, nutritious, culturally appropriate foods. Small food retailers are exempt from that space rule.

Farmers get help with organic certification

The commissioner can use agricultural marketing and development funds to help pay annual organic certification costs. Eligible recipients include Minnesota resident farmers and businesses that sell, process, or package agricultural products in Minnesota. Assistance can also support people moving from conventional to organic farming. The provision sets no funding total or individual reimbursement share.

Food businesses gain location licensing flexibility

Beginning August 1, 2025, food and home food handlers with annual food sales of $50,000 or less can seek two extra locations under one license. Each location and activity needs reporting and commissioner approval before opening. Closing an approved extra location does not void the license when the business gives written notice; transfers or main-location closures otherwise do. State-licensed wholesale and processing handlers are exempt from most local licensing, except where their plant is located. Delivery equipment has a similar exemption, except where it is mainly located.

Home food sellers gain separate status

Beginning August 1, 2025, the law defines a separate category for qualifying home food handlers. They prepare and package food only in residential kitchens and sell directly to consumers or other home handlers for resale. Eligible foods include some needing temperature control, but exclude raw meat or poultry, alcohol-containing drinks, and foods needing specialized processing. Qualifying handlers are not treated as food establishments under the laws named in this provision.

Refund options for seed potato growers

Seed potato growers can withdraw a timely inspection application before field or laboratory inspection and receive a refund. They must send a written request explaining why and remove withdrawn acres from production before the first field inspection. Changes to a timely application also require a written request with a reason.

Funding keeps animal health services running

The Board of Animal Health receives $6.531 million in fiscal year 2026 and $6.656 million in fiscal year 2027. These totals include $121,000 and $246,000, respectively, to maintain current services. The service-maintenance funding base is $246,000 in fiscal year 2028 and each year after.

State funding supports research on pollinators

The law transfers $100,000 to the pollinator research account in each of fiscal years 2026 and 2027. This money supports research rather than direct household payments.

Surplus farm food supports food shelves

Grants through Second Harvest Heartland compensate Minnesota producers and processors for harvesting and packaging surplus farm food. Eligible food is otherwise left unharvested, discarded, or sold in a secondary market. It goes to eligible food shelves and charities statewide. Second Harvest Heartland can use up to 15% of each grant for administration and transportation.

PFAS limits for cleaners and pesticides

Beginning January 1, 2026, Minnesota cannot register covered cleaning products containing intentionally added PFAS chemicals. Beginning January 1, 2032, the same registration restriction applies to pesticide products. The commissioner can allow registration after finding that the PFAS use is currently unavoidable. These rules govern product registration, not household purchases or use.

Protein food grants support food shelves

The law provides grants through Second Harvest Heartland to buy and distribute protein foods. These include pork, poultry, beef, dry legumes, cheese, and eggs. Products must come from Minnesota processors and producers and go to eligible Minnesota food shelves and charities. Up to 2% of each grant can cover administration.

Agricultural fair groups receive state aid

The law provides $474,000 in each of fiscal years 2026 and 2027 for county and district agricultural societies and associations. Aid supports an annual fair held during the previous calendar year. Payments must be sent by July 15 each year.

Funding maintains agricultural research institute services

The Agricultural Utilization Research Institute receives $4.388 million in fiscal year 2026 and $4.434 million in fiscal year 2027. These totals include $45,000 and $91,000, respectively, to maintain current services. The service-maintenance funding base is $91,000 in fiscal year 2028 and each year after.

Funding supports farm research and education

The law provides $10.352 million each fiscal year, 2026 and 2027, for farm research, education, extension, and technology transfer. Program funds go to the University of Minnesota Board of Regents. Annual funding includes $600,000 for rapid response, up to $1 million for turkey disease research, and $2.25 million for education grants. It also includes $200,000 for natural wild rice, $250,000 for cultivated wild rice, $350,000 for potato breeding, and $802,000 for Forever Green. Separately, the Minnesota Agricultural Education and Leadership Council receives $250,000 each year for its programs.

Grants help Minnesota producers find buyers

The law provides $186,000 in each of fiscal years 2026 and 2027 for Minnesota Grown promotion grants. Those grants support promotion of Minnesota agricultural products. Funds contracted by June 30, 2027, remain available through June 30, 2029. The Southern Minnesota Initiative Foundation also gets $25,000 each year for an annual local-food event connecting producers and processors with buyers.

Grants support farms and food businesses

The Agricultural Growth, Research, and Innovation program gets $17.582 million in each of fiscal years 2026 and 2027. Eligible uses include farm startup and expansion, livestock modernization including robotic milking, value-added businesses, on-farm research, food hubs, renewable energy, farm-business tuition, and certification help. Annual allocations include $3 million for producer incentives and $3 million for biofuel equipment. Biofuel grants cover up to 65% of eligible technology costs, capped at $200,000 per station; retailers can have at most 20 Minnesota sites, and upgrades must support E25 certification. Another $250,000 annually supports meat, poultry, egg, and milk processing grants, capped at $200,000 each. Annual funding also includes $2 million for urban agriculture, $1 million for food retail improvement, and $200,000 for cooperative development. County fairs share $1 million equally each year; school and early-childhood local-food purchases get $1.294 million, including up to $150,000 for a statewide coordinator. Up to 7.5% can cover administration, and funds remain available through June 30, 2029; grants contracted by then remain available through June 30, 2032.

Beginning farmer grants exclude family purchases

Beginning farmer down payment grants cannot fund farmland purchases from a family member of the applicant or the applicant’s spouse. The law uses the federal tax code’s specific definition of family member.

Food businesses face new licensing categories

Beginning August 1, 2025, Minnesota classifies food handlers by their main activity: direct sales, wholesale sales, or processing for resale. Custom-exempt handlers remain a separate class and can only perform custom-exempt processing or slaughter. Their products must be marked “Not For Sale.” Retail-exempt operations, retail or wholesale transactions, and work beyond custom-exempt operations are not allowed under that license.

Food businesses get revised license charges

Beginning August 1, 2025, food license charges depend on business type, prior-year gross sales or service, and applicable risk category. Custom-exempt handlers with sales of $50,000 or less pay a $135 license fee. Their penalties are $45 for late renewal and $90 for operating without a license. The home food handler schedule sets a $150 fee, a $50 late-renewal penalty, and a $100 no-license penalty. Home licenses become available only after the separate start-date and rule requirements are met.

Meat processors face possible permit charges

Beginning August 1, 2025, custom exempt processors and establishments under Minnesota's Meat and Poultry Inspection Act need the applicable permit. The agriculture commissioner can charge an additional permit fee of up to $500. This is a maximum allowed charge, not a fixed $500 fee.

Milk marketers face licenses and fees

Milk marketers need nontransferable licenses renewed annually, plus required payroll and procurement reports. Initial licenses cost $100; renewals cost $100 for up to 700,000 pounds procured in the prior 12 months, or $250 above that. Late renewal costs another $100; beginning January 1, 2026, initial applicants pay a $250 penalty for licensable activity during the prior 365 days. Covered marketers and farmers marketing their own milk also need permits, with no application fee or renewal while validity requirements remain satisfied. Mere contract brokers who do not control milk or payments, and people only trading milk on commodity exchanges, are excluded.

Seed businesses face twice-yearly reporting deadlines

Seed fee permit holders must file reports twice a year, within 30 days after each reporting period. The agriculture commissioner sets the periods and tells permit holders each year. Permit holders need commissioner approval to change reporting periods.

Seed potato shippers face packaging duties

Seed potato lots needing a grade statement require shipping-point inspection, or a requested in-transit inspection when that is impossible. Certified bagged shipments for sale need new even-weight sacks and sealing tags; bulk shipments need bulk certificates. Tags require certification approval and identify the grower, farm city, variety, and crop year. Bulk certificates list issue date, class, grade, lot number, and approximate weight; growers printing tags must submit lot proof and include the required disclaimer. Shippers pay to recondition failed lots, remove tags from failed bagged lots, and cannot obtain certificates for failed bulk shipments.

Green fertilizer facilities lose state funding

The law cancels $3 million from the fiscal year 2024 appropriation for green fertilizer production facilities. The canceled money returns to the state's general fund by June 30, 2025. This reduces funding available to facilities covered by that appropriation.

Food businesses face license fitness checks

Beginning August 1, 2025, the agriculture commissioner may arrange inspections before issuing or renewing a food license. Inspections assess the business's risk level and fitness for its requested activities. This adds food-handling oversight, and the commissioner may withhold approval for activities the business is not fit to perform.

Experimental seed entry requires rights proof

The commissioner can give untested breeder seed, seedlings, or numbered selections experimental status and set their class rules. Applications need a breeder, originator, or designee’s written statement confirming full commercial introduction rights and certification-entry rights. After notice of approval, applicants must tag the material “EXPERIMENTAL.” Protected varieties also need a written statement confirming full, unrestricted rights to enter the certification system.

Food businesses face mixed license fees

Beginning August 1, 2025, food license applications carry a nonrefundable $50 fee. Annual renewals and applications solely for special event food stands or custom exempt handlers are excluded. Initial license fees are prorated by quarter; applications within 14 days before a new period get those days and the next year for one fee. The commissioner can adjust license fees every five years using consumer-price inflation, measured from July 2025. License fees and interest go into a dedicated account that pays for food-handler regulation.

Food license dates change with transition relief

Beginning August 1, 2025, most food licenses run January 1–December 31, with annual renewal by January 1. Retail and wholesale licenses covering July 1, 2025–June 30, 2026 renew by July 1, 2026. That transition renewal lasts through December 31, 2026 and costs half the specified fee. Mobile-unit licenses run April 1–March 31; State Fair-only and home food licenses run July 1–June 30. Home licenses cannot begin before July 1, 2026 or the authorized rules take effect, whichever is later. Annual renewal requires payment and state approval before the licensing period ends.

Potato growers face standards and exceptions

Potatoes planted in Minnesota in lots of 10 acres or more must meet state disease standards. During certified-seed shortages, growers can apply for a one-season exception if the commissioner finds no serious disease threat. In the restricted seed potato area, growers not seeking certification must still plant seed certified under Minnesota or equivalent standards. They must file certification records for all farm lots, meet certified-class disease limits, and allow inspections. Potatoes that fail these requirements cannot be labeled, marketed, or sold as certified seed.

Seed potato grades set defect limits

Certified seed potatoes receive blue-, yellow-, or white-tag grades after shipping-point inspection; all three support in-state and interstate shipments. Blue-tag lots generally allow 6% combined listed defects, while yellow-tag lots allow 20%; neither allows bacterial ring rot. Yellow-tag soft rot, frozen damage, or wet breakdown is capped at 0.5%. White-tag size and defects follow buyer-seller agreement, but those conditions are capped at 0.5% and dry rot at 2%, including no more than 1% late blight tuber rot. Individual containers generally cannot exceed twice the lot’s disease tolerance, with stated exceptions; this limit does not apply to bulk conveyances. Deterioration in transit changes condition, not grade.

Seed potato retesting includes backup options

Seed potato classes seeking recertification require winter testing, except Prenuclear, Generation 1, and experimental classes. Passing lots go on the approved list for recertification. Comprehensive laboratory tests can replace winter grow-out tests when special circumstances make sending samples impractical or impossible. After a serious winter-test malfunction, classification must use the previous year’s summer field readings or laboratory tests.

Seed potato sellers get grading flexibility

Blue-tag potatoes must meet final-inspection condition, size, and lot limits; yellow-tag potatoes must meet condition, size, shape, and lot limits. Both allow buyer-approved alternate sizes listed on tags or bulk certificates; long yellow-tag varieties can be marked 'except for shape.' White-tag buyers and sellers agree on size and defects, but soft rot, freezing, or wet breakdown cannot exceed 0.5%. White-tag dry rot cannot exceed 2%, including at most 1% late-blight tuber rot. Non-bulk containers can reach twice the grade tolerance, except for sprouts, if the lot average stays within limits. The container rule also allows one defective specimen other than bacterial ring rot and one offsize specimen. Deterioration during transit affects condition, not grade.

Seed potato shippers face certificate rules

Shipping-point certificates require field and post-harvest inspections; laboratory or greenhouse potatoes instead require facility, records, and post-harvest or release inspections. A certificate of origin is allowed only for in-state shipments between certified producers when shipping-point inspection is unavailable. The seller, buyer, and commissioner must approve it before shipment, and it must include required shipment and lot details. Bulk certificates must list issue date, class, grade, lot number, and approximate load weight. Certification does not guarantee crop quality or the potatoes' condition at shipment.

Seed potato funding and duties change

Seed potato program expenses and compensation no longer have to come only from the seed potato inspection account. The law also removes the commissioner's statutory duty to issue program rules. It removes prosecuting officers' duty to start proceedings on reported violations.

Grain businesses face mixed fee changes

Grain-buyer licenses issued or renewed after June 30, 2025, cost $500 per location. Examination fees are $0.0035 per bushel of capacity, with a $350 minimum and $4,000 maximum; no-bin locations pay $350. Grain buyers examined annually by the USDA Agricultural Marketing Service are exempt from that examination fee. Public grain warehouse licenses rise from $110 to $300 per city or town, but their capacity-based examination fees are removed. Supplemental examinations for both groups cost $110 per hour per examiner.

Sponsors & Cosponsors

Sponsor

Paul Anderson
Republican • House

Cosponsors

Rick Hansen
Democratic • House
Putnam
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 361 • No: 38

House vote • 5/18/2025

Repassage, as amended by Conference

Yes: 130 • No: 4

Senate vote • 5/18/2025

Third Reading

Yes: 58 • No: 8

Senate vote • 4/30/2025