ST. PAUL, Minn. – The Minnesota House and the Minnesota Senate passed a new, two-year budget for agricultural programs on May 18. The bill cleared both chambers with broad bipartisan support – of 201 legislators, only 12 voted against the final package.

“This is in stark contrast to what we’re seeing in Washington, D.C., where we’re still waiting on a new Farm Bill,” said Minnesota Farmers Union (MFU) President Gary Wertish. “In Minnesota, lawmakers came together on a bipartisan basis to get a bill done and they did it on time. There’s still work to do on the state budget, but we’re grateful that farmers will have the certainty of knowing agricultural programs will be funded through the next two years.”

The package increases the general fund investment in agricultural programs by $9 million over the next two years. It increases base funding for the Minnesota Department of Agriculture (MDA), Minnesota Board of Animal Health (BAH) and the Agricultural Utilization Research Institute (AURI). Other highlights include:

• More than $2 million for Farm to School and a new Local Food Purchasing Assistance (LFPA) program.
• More than $2 million in new funding for zoonotic disease preparedness, including funding to prevent transmission of HPAI.
• $1.5 million in additional state funding for meat inspections and increased support for grants to expand processing capacity.
• $500,000 in additional funding for Farm Business Management (FBM).
• $500,000 in additional funding for Down Payment Assistance Grants, along with a change that will allow up to $20,000 per eligible farmer.
• $350,000 in additional funding for wolf and elk depredation.
• $200,000 in new funding for Farm Safety and Rural Mental Health to support MDA’s outreach and counseling services.

The bill also continues to invest in soil health, cooperative development, Farm Advocates, the Emerging Farmers Office, new crop development and county fairs. Beyond funding, it also updates cottage food laws, creates a new license for milk marketers, gradually increases fees for some grain buyers to fund the inspection program, and boosts support for ‘limited land access farmers’ using the Beginning Farmer Tax Credit.

“When I look at this bill, it’s clear that lawmakers were listening to our members when they came to St. Paul,” said MFU Vice President Anne Schwagerl. “From building new markets through a first-in-the-nation LFPA program, to additional funding for meat processing, to expanded support for Farm Business Management, these investments are meaningful. In a tough budget year, our priority was a strong budget for agricultural programs and we’re glad that the legislature delivered during the regular session.”

Though agricultural programs saw an increase in spending, lawmakers made tough choices with limited resources. The budget cuts Green Fertilizer Grants by $3 million to $4 million, cuts biofuels infrastructure grants by $500,000 to $5.5 million, and cuts $1 million from the previously appropriated DAIRI program, which is still awaiting an updated Farm Bill.

The regular legislative session ended May 19. A special session is expected to take place as soon as later this week to pass the remaining budget bills. Gov. Tim Walz is expected to sign the agricultural budget bill.

About Minnesota Farmers Union

Minnesota Farmers Union works to protect and enhance the economic interests and quality of life of family farmers and ranchers and rural communities. MFU is a nonprofit membership-based organization. Membership is open to everyone. Learn more and join at www.mfu.org and follow MFU on Facebook, X, Bluesky and Instagram.

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Minnesota Farmers Union—Standing for Agriculture, Working for Farmers (www.mfu.org).