The state legislative session came to a dramatic end at midnight on May 20, ahead of the constitutional deadline. As in past years, the ending was chaotic, if decidedly more contentious. After a long weekend of extended debate and with little time to spare, the legislature passed a final agriculture bill (SF4942) and other supplemental funding. MFU’s legislative team was present and engaging with lawmakers through midnight, working to make sure that our grassroots priorities were reflected in a final deal.

At the start of session, we recognized that this session would reflect a more narrowed opportunity. The legislature was short on:

1. Time – given that it’s the second year of the biennium;
2. Money – despite a short term surplus, legislators faced a constrained picture going forward; and
3. Attention – with many inevitably thinking about the impending election.

Despite these challenges, MFU had some significant wins—including a supplemental budget for agriculture, new investments in soil health and establishing a new Veterinary Technician License. We also successfully defended progress from last session. That said, we also had some losses, including those that fell out of a deal just ahead of the finish line.

How things finished

So first, a little bit on how things wrapped up. Just ahead of midnight and after many hours of extended debate on everything from banning junk fees, to paid family leave, the DFL majority moved to combine major undone omnibus bills into the tax bill (HF5247) and passed that package off both floors without further debate. This prompted loud and disruptive protests from the Republican minority who shouted throughout the proceedings.

After adjourning at midnight on Sunday, both caucuses held press conferences. Republican Sen. Leaders Mark Johnson, R-East Grand Forks, and Rep. Lisa Demuth, R-Cold Spring, made the case that they didn’t know what was in the 2,800-page package and that the minority voice was shut out. In turn, DFL leaders Sen. Erin Murphy, DFL-St. Paul, and Rep. Melissa Hortman, DFL-Brooklyn Park, countered that they had no choice as the Republicans were filibustering and they needed to complete their work. They also pointed out that the provisions in the large package were those worked on by committees throughout session—no surprises.

Both caucuses are now turning to focus on the election which will decide the balance of power in the House—a special session is unlikely. As Sen. Johnson said upon leaving the floor after midnight on Sunday: “it’s election time!”

You were probably watching the Timberwolves, so you can read more about the end of session here.

The ag bill passed—twice by my count (though to no effect). Chairs Aric Putnam, DFL-St. Cloud, and Rep. Samantha Vang’s, DFL-Brooklyn Center, supplemental ag bill was rolled into the large omnibus “package to fund state government” and—since it was very close to final passage independently—was also voted off the House floor as a standalone in the final hour.

What’s in the ag bill?

MFU priorities included in the final agriculture bill include:

• $2,476,000 for addressing the shortfall in AGRI, the Agricultural Growth Research and Innovation program, ensuring it will continue to serve farmers and others in our agricultural economy. Much of the proactive, farmer-facing work at MDA—from farm-to-school to meat processing, to biofuels infrastructure, to beginning farmer programs—is housed in AGRI. Even more importantly, the undesignated funds in AGRI allow MDA to respond quickly to urgent challenges. When COVID-19 shut down the large packing plants, putting pressure on the already strained system of small and mid-sized processors, MDA sprang into action to ensure workers were safe and that farmers could get their livestock to market.

As MFU President Gary Wertish pointed out in written remarks to the committee, “AGRI is central to how MDA shows up to support family farmers and others working to make our agriculture economy more vibrant and diversified, and it’s a critical tool for managing the unexpected.”

This was a top funding priority for MFU this session after the program faced a funding cliff last session.

• $2,800,000 for addressing nitrates in groundwater, ensuring that everyone has access to safe drinking water, particularly in southeast Minnesota. To complement work made possible by the Clean Water Fund, the bill invests in reverse osmosis systems and upgrading private wells to ensure that residents in southeast Minnesota have access to clean drinking water.
• $495,000 in additional soil health equipment grants for southeast Minnesota counties to help farmers implement soil health practices and protect groundwater through investing in new equipment. This popular program was three times oversubscribed from the funding level last session. Importantly, and with advocacy from MFU, the legislature maintained farmers’ ability to rent or do custom work with equipment purchased through this program.
• Ensuring future investment in fertilizer research through extending the Agricultural Fertilizer Research Education Council (AFREC) by five years.  This program informs best management practices and ensures that farmers are using the best information when they make decisions about purchasing and applying fertilizer. Matt Kruger of Olmsted County represents MFU on this council, following Dan Benson of Chippewa County, who represented MFU since the council was created in 2008.
• Supporting new and emerging farmers by ensuring that programs are sustainable and will continue to help new farmers build a life in agriculture. A highlight of last years’ budget was the investments in the next generation of farmers. This year, the committees made changes to eligibility to ensure programs can continue to operate effectively. Going forward:
  • Down Payment Assistance grants, will prioritize specialty crop producers who gross less than $100,000.
  • Beginning Farmer Equipment and Infrastructure grants will prioritize those experiencing limited land access—defined as leasing or renting from an incubator farm—or grossing less than $100,000.
• $225,000 for grants to high schools to establish meat cutting programs, building on work MFU led with the ag educators last session and ensuring that entrepreneurs are prepared to operate local lockers and continue to serve livestock farmers across the state. Much like in agriculture more broadly, many processors are approaching retirement and thinking about the generational transition of their businesses. As in the last round, this competitive grant program will help secondary schools purchase supplies and equipment, do limited renovations, and gain professional development needed to stand up meat cutting courses.
• $125,000 for increasing farm to school and early care funding to help farmers access new markets and ensure young people have access to healthy, nutritious meals that aid their learning. This program has been a success and represents a win-win-win for participating farmers, schools and the state. A supplemental increase this session will help expand the program to include in-home childcares.
• $225,000 for protecting poultry farms from High Path Avian Influenza by discourage wild birds from interacting with domestic flocks. This builds on the legislature’s investments in the Board of Animal Health (BAH), the Ag Emergency Account, and the Veterinary Diagnostic Lab (VDL) and is a great example of successful programs piloted through AGRI.
• $300,000 for beginning farmer equipment and infrastructure grants, which will help boost this new program and help it support more beginning farmers as they build their businesses. Startup costs associated with equipment and infrastructure can be a significant barrier for beginning farmers.
• Barring confidentiality clauses in production and marketing contracts. This improves on existing law to ensure that farmers have transparency in marketing and processing contracts.
• $225,000 for small food entrepreneur support at the Agricultural Utilization and Research Institute (AURI) which will help more food businesses start-up and scale, promoting the use of Minnesota grown farm products.
• Supporting farmers markets across the state by allowing them additional flexibility with funds appropriated last session and simplifying rules around sampling.
• $50,000 for a deer and elk crop damage report to inform future action to help farmers whose crops and infrastructure are being damaged or destroyed.

What didn’t make it

Of course, there were pieces considered before the agriculture committee that didn’t earn a place in a final budget deal. MFU worked with Chair Putnam on bills that would create a portal to report Corporate Farm Law violations and another that would commission a report on land ownership and pricing trends, neither of which were accepted by the House in conference committee. Similarly, a provision easing reporting requirements on very small grain buyers didn’t make it across the finish line.

That’s a similar story for the tax bill. We’d made good progress in expanding the ag homestead tax credit to very small farmers who operate on less than 10 contiguous acres—a long-time headache for several members. Unfortunately, this along with additional funding for soil and water conservation districts was dropped out of negotiations in the final days in favor of a much more slimmed-down tax package.

No additional action on Public Option

On healthcare, the legislature did not take additional action on the MinnesotaCare Public Option this session, due to narrow opposition in the Senate.  Though disappointing, together with a coalition and the strong support of legislative champions we maintained the Department of Commerce’s funding and authority to seek the necessary federal waiver based on the actuarial analysis provided last session. So there are important opportunities to continue this work.

Connected to this work on affordability and access, MFU supported Sen. Rob Kupec, DFL-Moorhead, and Rep. Andy Smith’s, DFL-Rochester, work to establish notice requirements for closing hospitals and provide opportunities for local communities to maintain control.

As Wertish pointed out in his letter to lawmakers, this “builds off the work the legislature did last year in enacting meaningful checks on large hospital mergers by helping to address a key consequence of health system consolidation . . . This legislation will give communities a chance to better respond to proposed closures and maintain critical healthcare infrastructure.”

We also helped pass new checks on nonprofit Healthcare Management Organizations (HMOs) converting to for-profit and helped increase Medicaid dispensing fees paid to pharmacies to help independent pharmacies stay open in greater Minnesota. Finally, the legislature passed a substantial funding package for rural Emergency Medical Services (EMS), a top priority for both caucuses.

If you have questions, thoughts, concerns or topics we should address in future updates, please reach out at stu@mfu.org or (320) 232-3047.