It’s now the second full week of the state legislative session and committees are in full swing, including with consideration of MFU priorities. While preparing for MFU Lobby Day next Tuesday, March 3, staff have been busy working with members to ensure our organization is well-represented.

It’s not too late to sign up for Lobby Day—register at bit.ly/MFULobby26.

Farmer-Lender Mediation hearing held

Last Wednesday, Senate Agriculture Chair Aric Putnam, DFL-St. Cloud, used his first hearing to pass bills related to Farmer-Lender Mediation, the state program that helps farmers who are facing a creditor who’s enforcing a debt.

The first, SF3583, would approve a needed five-year extension for the mediation program, something MFU has consistently championed.

The second, SF3584, would provide additional one-time funding to assist the mediation program and help them hire an additional staff to manage the influx of mediations. At present, the mediation team runs lean and includes one full-time director, one full-time specialist, and five part-time mediators. Last year, they managed more than 2,000 requests for mediation, settling an estimated $166 million in debt.

“This is a priority of the chair,” Putnam emphatically told members of the committee. “This bill is extremely important for farmers and it’s something we’re going to work hard for.”

“The bankers that have been calling me in the last couple weeks, it’s been alarming. I don’t get calls from bankers every day,” said Commissioner Thom Petersen, as he helped make the case for extending and strengthening the program. “Especially out in western Minnesota, the situation with sugar beets is extremely worrisome.

“I personally have had the opportunity to sit through many mediations,” he continued. “They’re difficult, but most of the time, we’re able to figure something out.”

Minnesota Farmers Union testified, citing stories from members and highlighting this priority was identified in our to Special Order of Business passed at state convention. MFU also led a joint letter from eight farmer-led organizations.

“Farmers manage significant uncertainty—markets, the weather, and the cost of inputs are all well-beyond their control,” reads the letter. “And at present, many are facing financial challenges. As evidence of this, there were nearly 700 new requests for mediation in the first four months of this fiscal year, up from 524 in 2025 and more than double the requests in 2024.”

Both mediation bills were approved on a bipartisan basis and sent to the Judiciary and Higher Education committees, respectively.  The extension (SF3583) will be heard in Judiciary on Monday, March 2, just ahead of our Lobby Day.

Larsen, Busse testify on Beginning Farmer Tax Credit

Similarly, Wednesday, Feb. 25 was a packed day with Farmers Union submitting or providing testimony more than eight different times.

First, Senate Tax Chair Anne Rest, DFL-New Hope, considered a report on Minnesota’s Beginning Farmer Tax Credit (BFTC). In part, the report from the Minnesota Department of Agriculture showed that due to a shortfall in funding available to the program, more than 50 percent of eligible applicants were turned away from the program in 2025.

MFU member Darrell Larsen was one of the applicants who were turned away and came to testify to his experience.

“I want to thank you, Chair Rest, Senator Putnam, and others on this committee for championing this issue. I understand that you carried a provision to lift the cap on the Beginning Farmer Tax Credit into conference last session,” he shared with the Senate Tax Committee. “This would have been hugely helpful to our family, and I hope you’re successful in making this important change this session.”

Larsen went on to describe how his tax liability jumped unexpectedly—he’d been counting on the credit. He and his wife, Arlene, could have split their sale into multiple tax years to limit their liability, but that would have created a challenge for the new farmers taking over their operation.

Owen Busse, an FFA member from Glencoe-Silver Lake and an MFU member, talked about the importance of fixing this shortfall for the next generation.

“I want to farm,” he told the committee. “And I’m willing to work hard for that . . . But I won’t have any land to work hard on.”

Putnam’s bill (SF1419) would lift the cap on the BFTC so that no one is turned away from the program. This is a priority for MFU and one we’ll continue to work hard on.

Fix sought for DAIRI program

From there, MFU President Gary Wertish submitted written testimony in support of bills (HF3508, SF3832) to provide an important fix for the Dairy Assistance, Investment, Relief Initiative (DAIRI) program MFU helped create at the Minnesota Department of Agriculture (MDA). The fix, led by Rep. Nathan Nelson, R-Hinckley, and Sen. Rob Kupec, DFL-Moorhead, would ensure dairy farmers who started milking since 2022 can benefit from the program.

“We appreciate that this program is targeted toward family-sized dairies,” wrote Wertish. “That will ensure that the money goes further to keeping more farms in business.”

Rudolph testifies in support of whole milk in schools

MFU testified on two bills led by Senate Ranking Member Torrey Westrom, R-Elbow Lake.

The first would echo federal legislation allowing whole milk in schools (SF3687). MFU outreach staff and and Morrison County leader Brenda Rudolph testified in strong support.

“As a parent, this is important because it gives food service programs more flexibility,” she shared, discussing her long-time advocacy on this issue. “Right now, they’re limited by the nutrition guidelines they’re required to follow. Expanding milk options helps provide more choices for kids.”

Sen. Westrom added, “We’ve heard a lot of talk about eating real foods. Dairy is a good, wholesome, real food that is great to offer to our students.”

The bill will next be referred to the Education Policy Committee where lawmakers plan to discuss any costs to the state.

VanDerPol testifies in support of rotational grazing grant

A second bill (SF3686) would establish a grant program to help farmers and ranchers implement rotational grazing. MFU Executive Committee member Josh VanDerPol shared our organization’s strong support.

“A rotational grazing incentive at MDA would help our farm and support more of our neighbors in experimenting with and implementing rotational grazing practices,” he said.

He noted that while rotational grazing offers long-term benefits, it can be expensive and time-consuming to implement. Getting started often requires design work, purchasing and installing fencing, developing watering systems, addressing shelter needs, and establishing new perennial cover.

“These practices can pay for themselves over time. Initial cost-share is welcome, and we know that once that investment is made, it will be easier for farmers and ranchers to continue incorporating those practices going forward.”

Of course, this is just a snapshot of our legislative work. If you have questions, thoughts, or concerns, please reach out at stu@mfu.org or (320) 232-3047.