Lawmakers returned to the state Capitol on Tuesday after a weekslong legislative break following key committee deadlines in late March. Legislators have six weeks left to wrap up their work before adjournment on May 18. MFU remains active at the Capitol, ensuring that our voice is heard on our grassroots priority issues. This week MFU weighed in on proposals to expand tax credits for sustainable aviation fuel, fund grants to several green fertilizer projects, mandate an environmental impact statement for certain large feedlots, and ensure adequate funding for farmers that suffer depredation from wolves and elk.

The busy week began with the House Taxes Committee, which heard a proposal on Wednesday (HF1669) from committee co-chair Greg Davids, R-26B, to improve the tax credit for sustainable aviation fuel (SAF) production. The bill would increase the amount of funding allocated to the credit from $2.1 million in fiscal year 2027 to $7.4 million and provides a new credit allocation of $5.3 million in FY2028 and $2.1 million for fiscal years 2029 through 2035.

The bill also modifies the types of fuel that qualify for the credit, establishes a supplemental credit for increases in fuel having certain carbon intensity reductions, and extends the sunset of the credit. For agriculture, these changes could create a new market incentive for conservation practices and a drive for new crops, like winter camelina.

MFU Vice President Anne Schwagerl testified in support of the legislation and spoke about what SAF could mean for her as a grain farmer. This includes growing winter camelina that not only provides a cover crop that protects her soil from wind and water erosion, but also a crop they can market as it is crushed and the oil from it is refined and used at the Minneapolis-Saint Paul International Airport.

“We feel this is a win-win-win opportunity—we’ve got a new market and are improving our farm, we’re protecting our environment, and we’re helping lower the carbon intensity of a difficult-to-decarbonize sector of a transportation industry, helping meet our state’s climate goals,” Schwagerl said.

The legislation, which has the support of a broad range of agriculture and business organizations, was laid over for possible inclusion in an omnibus tax bill.

MFU VP testifies on green fertilizer

The same day, the House Agriculture Committee held an informational hearing on a proposal (HF2103) by committee Co-Chair Paul Anderson, R-12A, that would appropriate funding from the renewable development account for several green fertilizer projects. Schwagerl testified to the potential benefits the development of green ammonia could have for farmers. She also spoke of MFU’s leadership on this issue, including hosting a Green Ammonia Summit in 2024 and supporting the establishment of the green fertilizer grant program in 2023.

“The ability to reduce carbon intensity with a drop-in replacement for traditionally produced nitrogen fertilizer may allow Minnesota farmers to access price premiums and new market channels while reducing emissions in the agricultural sector,” Schwagerl said. “We also see significant opportunity for farmers to have a stake in the production of fertilizer through cooperative ownership of this key agricultural input.”

Bill mandates EIS for feedlots with capacity of 10K or more

On Thursday the House Environment and Natural Resources Finance and Policy Committee heard Rep. Kristi Pursell’s legislation (HF3940) to mandate an environmental impact statement for construction of an animal feedlot facility with a capacity of 10,000 or more animal units or the expansion of an existing facility to a total cumulative capacity of 10,000 or more animal units.

An EIS is a more extensive review than the already required Environmental Assessment Worksheet (EAW) and provides detailed information about the extent of potentially significant environmental impacts of a proposed project, presents alternatives to the proposed project, and identifies methods for reducing adverse environmental effects.

Testifying in support of the legislation, Schwagerl noted the scale of livestock operations in Minnesota is changing but Minnesota’s review processes have not kept pace.

“As livestock is consolidated into fewer, larger facilities, the consequences of disease outbreaks, natural disasters, or system failures become more significant—not just for the operation itself, but for neighboring farms and communities,” Schwagerl said. “Minnesota has lost nearly half of its dairy farms in the past decade, even as the number of dairy cows has remained steady, pointing to rapid consolidation that can reshape local economies in ways that deserve careful analysis.”

Wolf and elk depredation bills heard

While the Senate Agriculture Committee wrapped up work on its omnibus policy bill last week, it heard several budget-related bills on Wednesday. Committees have until April 17 to hear finance bills. Among the bills the Senate Ag Committee heard were proposals related to funding for wolf and elk depredation.

Senate Minority Leader Mark Johnson, R-1, has legislation (SF3949) that would provide $125,000 in additional funding this year for both the wolf depredation account and the elk depredation account. These funds pay out when livestock is killed by wolves or so crippled by wolves that they must be euthanized or when crops are damaged by elk.

In testimony to the committee, Peter Ripka, who farms in Ogilvie and works for MFU’s membership and outreach team, explained that MFU members experience with these accounts is that the process for verifying claims is extensive and often inconclusive and that the funds have been overburdened, speaking to the need for the additional funding. High beef prices, an otherwise bright spot in a bleak agricultural economy, have put further strain on the account.

Sen. Kunesh’s bill (SF3226) would provide funding ($90,000 over two years) for the Wolf-Livestock Conflict Prevention Grants program, which helps producers protect livestock depredation by wolves. Funds can be used for conflict mitigation efforts such as the purchase of guard animals, veterinary costs for guard animals, wolf-barriers, fencing, wolf- deterring lights and alarms, calving or lambing shelters, and chicken and other animal shelters.

MFU shared the experience of Hannah Bernhardt, who raises livestock in Pine County-a documented high wolf-kill area of the state according to the Minnesota Department of Natural Resources. Bernhardt used the grant program to pay for veterinarian costs for the Livestock Guardian Dogs she uses at her farm. In seven years of farming, Bernhardt has not experienced any depredation from wolves or any other predator.

Both bills were laid over for possible inclusion in an omnibus supplemental budget bill.

PBMs in the spotlight

Outside of agriculture, MFU also shared its support of Sen. Mann’s Minnesota Community Pharmacy Patient Access and Fair Reimbursement Act (SF3299) which the Senate Health and Human Services Committee heard on Wednesday. The bill seeks to address some of the anticompetitive business practices of Pharmacy Benefits Managers. PBMs are middlemen in the healthcare system, often vertically integrated with health insurers and retail pharmacy chains, that the Federal Trade Commission has found are driving up costs for patients while driving local pharmacies out of business.

MFU joined the Minnesota Independent Pharmacists (MNIndys) in testifying in support of the legislation. In a letter to the committee, MFU President Gary Wertish said the legislation would build off build off bipartisan legislation passed last session to transition pharmacy benefits under Medicaid to a “single-PBM model” which among other things will ensure fair reimbursement for community pharmacies that currently lose money on as much as 70 percent of prescriptions. “SF3299 would take the next step to ensure fair reimbursement for Minnesota’s pharmacies in the commercial insurance market.”

This is just a snapshot of our legislative work at the state Capitol. If you have thoughts, questions, ideas or concerns about MFU’s work at the legislature, please reach out to stu@mfu.org or (320) 232-3047.