On Feb. 25 the U.S. House narrowly approved a budget framework, the first step in advancing President Trump’s agenda through Congress. While many details are yet to be defined by committees, the budget resolution—the first step in passing a new budget via ‘reconciliation’—directs committees to cut $4.5 trillion in taxes and cut $1.5 to $2 trillion in spending across various jurisdictions.

The package was approved with only GOP votes and all Republican members of Minnesota’s delegation voting to approve the plan.

Widely reported and decried by Democrats are the budget frameworks’ cuts to the nation’s health safety-net. While the President has insisted that Medicare will not be cut by the plan, the plan requires $880 billion in cuts to the Commerce budget, the vast majority of which goes toward spending on Medicare and Medicaid—the program that provides healthcare to 83 million people who are low-income. The program makes up about one-fifth of total healthcare spending and a significant portion of state budgets.

From Minnesota, lawmakers showed bipartisan concern about these cuts with a dozen Republican lawmakers writing Rep. Tom Emmer and GOP members of Congress in opposition to Medicaid cuts.

“Drastic reductions to Medicaid funding have the potential to impact $1.4 million people we serve and place incredible pressure on our overall state budget,” wrote the lawmakers led by Sen. Jim Abeler, R-Anoka. “This is contrary to how we Republicans respect the aged and the vulnerable.”

The letter points out that Medicaid plays a critical role in providing care to seniors, those with disabilities, and children.

The budget plan also requires the Agriculture Committee to cut $230 billion over the next decade, which is expected to come at the expense of the Supplemental Nutrition Assistance Program (SNAP). House Ranking Member Angie Craig, D-2nd District, was quick to respond in strong opposition and to signal this move would endanger progress on a Farm Bill, which needs bipartisan votes.

“A bipartisan farm bill has always been a coalition between the farmers who produce the food and Americans who need a helping hand. Today, it appears House Republicans are proposing to cut funding for hungry children, seniors and veterans to help partially pay for their tax bill,” Craig said in a statement. “Farmers and families are tightening their belts to make ends meet and cutting critical aid to our neighbors during a time of increased prices is not the answer.”

The effort to reshape the federal government is separate from efforts to shrink the federal workforce through offers of buyouts, mass firings, and other administrative moves led by the Department of Government Efficiency (DOGE). This hit home when MFU County Leaders shared reports of local USDA staff being fired—without notice and despite excellent performance reviews.

Responding to a resolution passed by the MFU Full Board on Feb. 22, MFU President Gary Wertish wrote to all 10 members of Minnesota’s congressional delegation urging them to oppose these cuts and asking for information on affected services.

“MFU has long championed better staffing at the county-level to ensure that farmers have access to critical farm safety-net, disaster aid, farm loan, and conservation programs,” Wertish wrote. “As many farmers face tough balance sheets and an uncertain agricultural economy, we are concerned that what is being reported as widespread, across-the-board layoffs or buyouts will add to the stress facing family farmers as they prepare for spring.”

“We’re also motivated to share our opposition to these layoffs because USDA employees are people who have chosen to dedicate their professional career to helping farmers. Some have newly moved to our communities and others have families who are relying on what historically have been stable federal jobs. All of them deserve our respect.”

Minnesota Sen. Tina Smith, D-Minn., submitted this letter into the Congressional Record before pressing USDA for answers on staffing cuts during a committee hearing.

“What the administration is doing right now goes absolutely counter to, I think, what is a shared bipartisan goal,” Smith said. “I hope that we can find a solution that will make sure that our farmers across the country have the support that they need.”

Smith and other Democrat members of the Committee also signed a letter led by Sen. Amy Klobuchar, D-Minn., pressing USDA Secretary Brooke Rollins for answers on staffing cuts.

“These widespread layoffs jeopardize USDA’s ability to respond to the ongoing avian flu outbreak, process farm loans, disaster relief and other assistance for farmers, and distribute grants and loans for infrastructure and services that rural Americans rely on,” the letter states before outlining a series of questions.

The MFU Full Board also passed a resolution to contact Minnesota’s congressional delegation in support of a free and sovereign Ukraine.

“Russia’s war against Ukraine has not only important implications for democracy abroad but also the state of the agricultural economy in Minnesota,” Wertish wrote to lawmakers. “I urge you to support the Ukrainian people in their fight for freedom.”

Finally—and in addition to these fronts—we’ve been continuing to communicate with our congressional offices regarding the impacts of the federal funding freeze.

State level work

On the state level, lawmakers are also following happenings in Washington, D.C. closely. In part, that’s because federal cuts could put added pressure on an already strained state budget. With ample qualifications about the lack of funding, lawmakers have continued to hear budget bills, including many that MFU has testified for in the last week.

In the House and Senate Agriculture Committees, MFU shared support for a number of budget items. First, MFU Morrison County President Brenda Rudolph testified in support of Senator Heather Gustafson’s, DFL-Vadnais Heights, bill to fund Farm to School and Early Care Programs in Minnesota (SF1559). Like many others this session, it was heard with a blank appropriation and will be considered for inclusion in a final agriculture omnibus.

MFU has long advocated for additional support for schools purchasing direct from farmers, citing the win-win-win for kids, farmers, and our state. You can read more about MDA’s current work on Farm to School and Early Care on their website.

MFU provided testimony in support of House Ag Chair Paul Anderson’s, R-Starbuck, bill (HF979) to fund the Board of Animal Health, pointing out the importance of the Board’s work for all scales of livestock producers and the critical role livestock play in our agriculture economy.

Also important to livestock producers—particularly those in the northern part of the state—MFU testified in support of bills (HF601, John Burkel; SF469, Mark Johnson) allocating funding to the accounts that reimburse farmers for livestock killed or crippled by wolves, or crops or feed damaged by elk.

Important to agriculture, MFU President Wertish provided written testimony to the tax committee in support of Sen. Aric Putnam, DFL-St. Cloud, and Sen. Hauschild’s, DFL-Hermantown, proposals to increase funding for Soil Water Conservation Districts (SWCDs) (SF819; SF1089).

Finally, MFU’s Policy Intern, Amber Findlay, testified on a proposal to provide $350,000 in Legacy Funding to support Minnesota FFA Arts and History.

“Growing up, I was also a former FFA member and someone who was deeply involved in Career and Technical Student Organizations,” Amber shared in support of Sen. Gary Dahms’ proposal (SF1669). “I’ve experienced firsthand how these programs shape students into confident leaders, critical thinkers, and engaged community members. I appreciate the opportunity to speak today in support of this appropriation to the Minnesota FFA, which will provide new and expanded access to art- and history-related activities for FFA members across our state.”

MFU weighed in on two important policy issues heard in committee last week. First, MFU testified against a proposed change to net-metering (HF845) that would lower the current 40-Megawatt standard, making it less cost-effective to develop small, distributed, farmer-owned renewable energy projects.

Finally, MFU Swift County President Jim Falk traveled to the Capitol multiple times to testify in support of proposed changes to the rules regulating small grain buyers. The bill—led by Sen. Rob Kupec, DFL-Moorhead, (SF1552) and Chair Paul Anderson, R-Starbuck, (HF1063)—would remove a requirement that small grain buyers, which include seed cleaners, processors, feed mills, and small elevators across the state, purchase an audit performed by a Certified Public Accountant (CPA).

This CPA audit is a significant, because these small businesses are unable to find CPA auditors—and when they do, they’re unaffordable. One small feed mill owner from Barnesville testified that after numerous failures to find a CPA, he finally got a quote from an out-of-state firm that would conduct his audit for $18,000. His small feed mill may be forced to shut down without a change in law.

The new language—which was developed by MDA—would allow small entities below $7.5 million in annual purchases to submit their financials as performed by an independent accountant, provided that the information includes the same information provided by the audit. This would provide for ample financial review, while allowing small buyers to work with their existing tax advisors. Under a deal, entities under $17.5 million in annual purchases would only need a CPA review. And those above that threshold would still be required to purchase a full CPA audit.

Falk testified to his own experience as a small grain buyer and also pointed out how small, independent, and diversified grain buyers benefit farmers and our agricultural economy as a whole. The bill is expected to move quickly, passing this through the Senate yet this week.

As always, this is just a snapshot of our legislative work. if you have questions, thoughts, or concerns about MFU’s legislative work, reach out to Stu Lourey at (320) 232-3047 (C) and stu@mfu.org.