Legislative Updates

At noon on Tuesday, Jan. 5, Minnesota’s regular legislative session officially began.

This event is made less notable by the fact that legislators have convened for a special session every month since the last regular session adjourned in May. But the day did mark the swearing in of newly elected legislators, the start of negotiations on the next two-year budget and renewal of regular committee work.

As always, with leadership and help from you, MFU will work hard to make sure that Minnesota’s family farmers have a voice in shaping policies that affect their farms, families and communities. Though opportunities to participate in conversations at the Legislature will be virtual for the foreseeable future, including our annual Lobby Day, we plan to take every opportunity to make our members’ voices heard – be that by joining Zoom committee hearings, submitting written testimony or contacting elected officials by phone, email and social media.

As it was in 2019-2020, the Legislature is divided. In the November election, Republicans maintained a slim majority in the Senate, as did DFLers with a narrowed majority in the House. That dynamic aside, legislators and DFL Governor Tim Walz are unified in needing to address the public health, economic and social consequences of the COVID-19 pandemic. Additionally, legislators will be tasked with developing the next two-year budget (2022-23) and redistricting legislative maps following the 2020 census.

Though rhetoric can be divisive – and there are certainly strong differences of opinion among elected officials – there is much reason to be hopeful that they will be able to come together and deliver for people across Minnesota. Budget negotiations were successful in 2019 with a similar political dynamic. And since the start of the pandemic, legislators united in passing a bonding bill and multiple state aid packages aimed addressing the some of the worst effects of COVID-19.

Agriculture, in particular, has remained a bright spot of bipartisan work throughout the pandemic with legislators approving some relief for farmers and other businesses, new investments to expand local meat and poultry processing and changes to the Rural Finance Authority (RFA) to make sure farmers affected by COVID-19 could have access to low-interest disaster loans. Given the real challenges many farmers are facing – as well as the opportunities the state could help them pursue – we hope this year will be no different.

Approving a budget for the Minnesota Department of Agriculture (MDA), making our agriculture markets more resilient, fixing the bottleneck in local meat processing, expanding the use of biofuels and a host of other issues will be the purview of the House and Senate Agriculture Committees. Senator Torrey Westrom (R-Elbow Lake), who previously served as the Senate Ag Finance Committee Chair, will resume that role again this session. Last session, he helped secure funding for local meat processing, a top MFU priority.

“I am proud to be able to once again chair the Senate’s Ag Committee. I grew up on a farm. I have lived in Greater Minnesota my entire life,” said Sen. Westrom. “I know how important agriculture is – not just to the numerous small towns that make up most of Minnesota’s 87 counties, but to our state as a whole.”

Newly-elected Sen. Erin Murphy (DFL-St. Paul) will take on the role of Minority Lead. On the committee, she plans to use her role on the committee to work to build strong rural families, end hunger and champion economic justice. Sen. Murphy has previously served as the Majority Leader while in the state House.

In the House, Representative Mike Sundin (DFL-Esko) will be chairing the Ag Committee. He previously served on the ag committee, represents Carlton and parts of Pine and St. Louis counties and grew up on a dairy farm in Koochiching County.

“In addition to ensuring we all have something to eat on the kitchen table, agriculture is part of our state’s economic backbone, and the industry has been facing significant challenges,” Chair Sundin said. “I look forward to tackling this work in a committee that is traditionally one of the most bipartisan in the entire House.”

Leading minority members on the House Ag Committee is Rep. Paul Anderson (R-Starbuck), a farmer and active MFU member. He worked hard with MFU to develop grain indemnity fund and plans to continue championing moving the state’s ethanol blend rate up from E10 to E15. In 2019, we awarded him

MFU plans to work with the Legislature, the Governor, state agencies and others to make health care more affordable, to make sure everyone has access to high-speed internet, tackle climate change and make sure our state is an inclusive and affirming place for everyone. All these issues were defined as priorities by MFU members and ratified as Special Orders by delegates to our State Convention in November.

As always, if you have any questions, thoughts, or concerns about MFU’s legislative work, don’t hesitate to reach out to me.

Election results are in. Now what?

After a long campaign season and days of counting mail-in ballots, the general election is complete. On Saturday, November 7, it was projected that former Vice President Joe Biden and U.S. Senator Kamala Harris will be the next President and Vice President.

In subsequent news reports, farmers expressed mixed opinions about the incoming Democratic administration. Some were concerned about potential regulations, while others expressed optimism for improving trade relations.

National Farmers Union issued a news release upon hearing of the Biden-Harris win. NFU President Rob Larew said, “On the campaign trail, President-elect Joe Biden has indicated that he intends to address many of the concerns we have expressed over the last several years. He has promised to rejoin the Paris Climate Agreement as well as provide farmers and ranchers the tools they need to implement climate-smart practices, both of which are top priorities for Farmers Union members. Additionally, Biden has outlined his commitment to revitalize rural economies, enforce antitrust regulation, strengthen the Affordable Care Act, alleviate racial inequities in agriculture, expand rural broadband and promote homegrown biofuels.”

In particular, Biden has expressed strong desire to fight back against the worst effects of climate change, investing in renewable energy systems and protecting public lands. Of course, the top priority is combating the COVID-19 pandemic, which continues to rage across the state and country.

We are ready to work with the Biden-Harris administration, whoever they choose to lead the Agriculture Department and other agencies.

Meanwhile, agriculture will lose a prominent Congressional advocate – Collin Peterson of Minnesota’s 7th District. The Democratic House Agriculture Committee Chair lost to Republican Michelle Fischbach, former State Senator and, briefly, Lieutenant Governor. We’d like to thank Chair Peterson for his years of service in Congress and leadership on agriculture. His insight was crucial to many Farm Bills. He has 16 Golden Triangle Awards from National Farmers Union, most recently in 2019. Fischbach has expressed interest in joining the Ag Committee.

In other races, House Ag Committee members Angie Craig (D-MN02) and Jim Hagedorn (R-MN01) won their races for re-election, as well as Senate Ag Committee member Tina Smith (D-MN). Reps. Tom Emmer (R-M06), Pete Stauber (R-MN08), Ilhan Omar (D-MN05), Dean Phillips (D-MN03) and Betty McCollum (D-MN04) also kept their seats. The House remains in Democratic control, while control of the Senate depends on two runoff elections in Georgia in January.

On the state legislative side, Rep. Jeanne Poppe (DFL-Austin), who served as House Ag Committee chair for the past two years, lost her race for re-election. Like Congressman Peterson, she has been a strong supporter of MFU policy in the Legislature – her voice will be missed. Rep. Jeff Brand (DFL-St. Peter), the Vice Chair of the same committee, also lost. We thank them both for their service to agriculture. The DFL did retain control of the House, 70-64, and re-elected Melissa Hortman (DFL-Brooklyn Park) as Speaker. The GOP still controls the State Senate, but they now only hold a one-seat majority – 34-33.

We look forward to working with all of these newly elected officials and advocating for Minnesota’s rural communities.

Long-awaited bonding and tax deals pass Legislature

After a record five special sessions this summer and fall, the Minnesota Legislature approved a long-awaited $1.9 billion borrowing package and supplemental tax bill. The package is aimed at kickstarting the economy by investing in job-creating infrastructure projects across the state and providing tax relief to some farmers and business owners.

Despite months of negotiations and many hours of debate during the Oct. 12 special session, the package was passed with large bipartisan majorities in both chambers and is set to receive the Governor’s signature. The package is the result of sustained work on the part of bonding Chairs, Rep. Mary Murphy (DFL-Hermantown) and Sen. Dave Senjem (R-Rochester), and legislative leaders in both bodies. Speaker of the House Melissa Hortman (DFL-Brooklyn Park) has been steadfast in her commitment to completing a bonding bill this session, despite the pandemic, civil unrest and increased partisanship leading up to the general election

“You don’t have to be a legislator from Greater Minnesota to be a great legislator for Greater Minnesota,” Speaker Hortman shared with MFU members who joined for this year’s Lobby Day in February. Her tenacity for getting a deal done this year reflects that commitment.

In addition to investing in rural roads and bridges, stormwater mitigation and other construction projects, this year’s bonding bill authorizes investments that will be important for many MFU members. These projects include:

• $3.25 million for the meat processing facility at the Northeast Regional Corrections Center (NERCC), which a number of MFU members rely on to process their livestock and will provide training opportunities that could help address workforce for small processors;
• $20 million to make needed upgrades to MDA’s laboratory, which will strengthen Minnesota’s emergency-preparedness and response capabilities as they related to the food and ag sector, making our states producers more resilient to plant pathogens and other threats;
• $2 million for the Hmong American Farmers Association (HAFA) to purchase their farm in Dakota County.
• $250K for a poultry processing facility that will anchor a regenerative agriculture industrial park aimed at creating new, value-added economic opportunities for local farmers in southeastern, MN.

The bill also requires the Rural Finance Authority (RFA) to submit quarterly reports to the Legislature regarding when funding is projected to be exhausted. As a reminder, early in March and with strong support from MFU, the Legislature approved $50 million in user-financed bonds for the RFA, a provision that has historically moved with the larger bonding bill. The former two bonding projects reflect priorities approved as special orders during MFU’s State Convention in 2019.

Tax changes will also be meaningful to many farmers as the final package included full conformity with Section 179 for equipment expensing, a long-held priority for MFU and other agriculture organizations. The bill also includes a fix that will ensure that farmers and others who were hit with retroactive tax bills related to trading in equipment in tax years 2018 and 2019 are held harmless. At the start of regular session, House Tax Chair Paul Marquart (DFL-Dilworth) named this the number-one priority for his committee. Led by Senate Tax Chair Roger Chamberlain (R-Lino Lakes) and others, the Senate majority also pushed for this update.

Going forward, conformity with Section 179 will simplify the tax code by aligning state and federal rules for expensing equipment, allowing farmers and others to expense the full value of equipment in the first year instead of stretching it out over five as was previously required.

Changes made to loan guarantee fee grant program

The Legislature approved needed changes to the Loan Guarantee Fee Grant Program at MDA in order to ensure that more farmers who need assistance are able to receive funds. With the leadership of House and Senate authors Todd Lippert (DFL-Northfield) and Mike Goggin (R-Red Wing), and the support of Ag Committee Chairs Jeanne Poppe (DFL-Austin) and Torrey Westrom (R-Elbow Lake), the changes to the program will allow farmers to receive 50% of the loan guarantee fee needed to close an eligible Farm Service Agency (FSA) restructure loan, regardless of whether or not they’ve been formally served a mediation notice by their lender. The Legislature also gave MDA additional authority to broaden grant criteria starting in mid-November to ensure that the full $175,000 allocated to the program can be spent to help farmers ahead of the program end date on Dec. 30.

To learn more or apply for funds, contact Matthew McDevitt at the RFA at (651) 201-6311 or Matthew.McDevitt@state.mn.us.

County conventions bring forward policy resolutions

Meanwhile, MFU members spent the last few months in the annual policy development process, which will help set our agenda for the 2021 legislative session. At county conventions across the state, held virtually via videoconference or socially distant in-person, MFU members passed resolutions that will be considered by delegates at the 79^th Annual MFU Convention on Nov. 21. While much of the process looks different this year due to pandemic, MFU members still had good discussions that resulted in more than 100 resolutions.

On Oct. 30-31, the MFU Policy Committee met to develop recommendations for how to incorporate these resolutions into MFU’s policy. Members of this year’s Policy Committee are:

• Jim Kanten, Chippewa
• Theresa Keaveny, Brown
• Eunie Biel, Filmore
• Hannah Bernhardt, Pine
• Brian Romsdahl, Watonwan
• Theresa Bentz, Dakota

Here are a few examples of resolutions considered:

Echoing a long-held MFU priority, Yellow Medicine County submitted a resolution in support of a “public option buy-in plan for a public health care coverage . . . like MinnesotaCare . . . and using the state’s purchasing power to lower [the cost of] prescription drugs.” Similarly, Morrison County called for support for “state and national single-payer bills” and Lac Qui Parle called for a plan with “lower costs, deductibles [and protections for people with] pre-existing conditions.”

There were also several resolutions related to local meat processing, which has been a top priority for MFU in past legislative sessions. Chippewa County, for instance, submitted a resolution calling on the state to “use its bonding authority to start facilities.” And Benton County called for “funding for the development of meat cutting courses and equipment at our regional colleges.”

On the topic of conservation, Rice County proposed a “three-year set aside program for working acreage for conservation, water quality and carbon sequestration.” And Cottonwood supported “exploring the expansion of regenerative farming practices, such as agroforestry, that can help improve soil health.”

Several counties sent resolutions related to the pandemic and associated relief programs. For example, Aitkin County put forward that “all Commodity Credit Corporation (CCC) funding be required to be under the approval of Congress.” And Fillmore County suggested that MDA should pay a greater portion of Farm Business Management (FBM) scholarships.

Finally, the newly formed Hennepin-Ramsey chapter of MFU submitted several resolutions, including calling on MDA to “adopt and employ an equity framework for all existing and proposed grants.” Mille Lacs echoed this focus on equity, calling on MFU to “continue to take an actively anti-racist stance.”

Of course, this is only a snapshot of the many resolutions passed at county conventions this year—and on a host of topics, from solar incentives to crop insurance.

September 14-18, 2020 marked National Farmers Union’s first-ever Virtual Fall Fly-in, with family farmers and ranchers from across the country meeting via Zoom with their elected representatives in Washington, D.C. Together—though separated by geography—MFU members joined farmers from other Farmers Union states in expressing common support for priorities that will help farmers meet today’s challenges and take advantage of coming opportunities.

It goes without saying that farmers are facing a lot of challenges right now – concentrated and uncompetitive markets, the Trump administration’s trade war and efforts to undermine the Renewable Fuel Standard, market closures due to the pandemic and the effects of climate change, to name a few. This makes it even more important that we make our collective voices heard with policymakers in D.C. In light of these challenges and the work before Congress in the coming weeks and months, we shared support for reforming agricultural markets, strengthening programs aimed at pandemic recovery, rebuilding infrastructure across rural America and support biofuels and climate-smart agriculture.

During the fly-in, MFU members took time to meet with almost every member of our Congressional delegation or their staff. A common thread throughout the meetings was the need for more distributed small- and mid-sized meat processors to ensure that livestock producers can sell their products, and to address the undue influence of the large, multi-national, corporate entities that control so much of our food system. Just over 50 plants are responsible for as much as 90% of the cattle slaughtered in U.S., for example.

When a member from Northfield raised this issue with Sen. Tina Smith (D), she agreed and talked about the need to address workforce challenges facing small processing plants. She also shared her support for greater anti-trust enforcement and discussed ways to restore transparency to livestock markets so that farmers have a stronger foothold in the marketplace.

Sen. Amy Klobuchar (D) touched on the need for reforming agricultural markets and talked about her leadership on legislation that would require the Environmental Protection Agency (EPA) to disclose more information about the so-called “small refinery exemptions” the administration handed out in order to allow big oil companies to skirt compliance with the Renewable Fuel Standard (RFS). She also addressed the great need for stronger leadership from Washington on agricultural trade policy to help restore foreign markets destroyed in part by the administration’s erratic trade policy.

Rep. Collin Peterson (D-CD7), who chairs the House Agriculture Committee, was generous in spending time not only with MFU, but also with all the participants from across the country in a large-group webinar session. He talked about how he continues to stand up for farmers in the COVID relief packages and that he understands the need great need for more processing opportunities for livestock farmers. That is a big reason why he authored the RAMP-UP Act, which made its way into the newest House COVID relief package. He also talked about the need to reinstate country of origin labeling (COOL) and his work to restore fair, sustainable prices for farmers and get away from ad hoc disaster payment programs.

Representative Angie Craig (D-CD2), a fellow member of the House Agriculture Committee, echoed Peterson’s support for building more resilient agriculture markets, highlighting her leadership in the House supply chain caucus. She also talked about the need to look to farmers for solutions on climate change, which is already exacting a significant cost on farmers and others across the country.

Finally, members also had meaningful and productive conversations with Congressman Tom Emmer (R-CD6), Congressman Dean Phillips (D-CD3) and Congressman Pete Stauber (R-CD8), as well as staff members from metro-area Congresswomen Betty McCollum (D-CD4) and Ilhan Omar (D-CD5). We talk about Fly-In as an opportunity to start or build on a relationship with an elected official or their staff—not just a once-a-year check-in. This year’s virtual event has been true to that principle. A number of MFU members have followed up on conversations with congressional staff and we’ve continued to keep in close touch with our elected representatives. Congresswoman Craig, for example, stepped out from between votes the Friday following Fly-In week to hop on a call with MFU county officers.

Early indications are that this work left an impression on policymakers. In the Democratic-led U.S. House of Representatives, lawmakers passed an updated proposal aimed at pandemic relief, which includes several priorities we shared in our visits. These include the RAMP-UP Act, which would provide funding for small and mid-sized meat processing plants to meet federal inspection, additional support for the Postal Service, an increase in food assistance and funding for farm and rural mental health. There is still much work to be done to see these changes into law, including action by the Senate, but this is certainly a welcome development in the ongoing negotiations over a second aid package. Unfortunately, the Senate’s work has been temporarily stalled because of a bevy of members testing positive for COVID-19, including a few who attended the nomination ceremony of Judge Amy Coney Barrett for the Supreme Court. Majority Leader Mitch McConnell (R-Ky.) has halted Senate floor sessions until Oct. 19.

Well after midnight on Monday, July 20, the Minnesota Legislature adjourned, concluding the second special session in as many months. While most of MFU’s priority issues were tabled until a likely special session in August, the big news out of the late night session was approval of substantial police accountability measures. These reforms were negotiated in response to the murder of George Floyd by Minneapolis police, an action MFU President Gary Wertish, NFU and others agreed we can’t ignore.

Broad bipartisan majorities supported this package in both houses ahead of a self-imposed deadline Monday.

A $1.35 billion bonding package that invests in rural infrastructure, stormwater mitigation and other construction projects were left unfinished, despite progress early last week. The bill, which authorizes the state to borrow money in order to invest in large, long-term infrastructure projects, requires a supermajority in both the House and the Senate. This means that, unlike many provisions, it requires support from minority members.

House Minority Leader, Kurt Daudt (R-Crown), has maintained that he and his caucus will only support a bonding bill if the Governor cedes his emergency powers related to the pandemic. These powers are, for example, what allowed the Governor to issue his current ‘Stay Safe MN’ executive order, expedite procurement of Personal Protective Equipment (PPE), exempt hours of service requirements for livestock haulers and limit landlords’ ability to evict tenants.

Early last week, prospects of a deal on bonding seemed close at hand, after Walz offered to cede some of his powers in exchange for support of a bonding package negotiated between the Republican-controlled Senate and Democratic-controlled House. House Capital Investment Committee Chair, Mary Murphy (DFL-Hermantown), dropped a bill that reflected a compromise. Relevant to many MFU members, this bill made needed invested in rural transportation infrastructure, funded upgrades to a meat processing facility and training center at the Northeast Regional Corrections Center (NERCC) and a poultry processing project in south central Minnesota, included $23 million in flood mitigation, and paid for needed improvements to the laboratory at the Minnesota Department of Agriculture (MDA). A full list of projects can be found here.

Then, reflecting more progress on a global deal, a supplemental tax relief package that included conformity with Section 179 was amended onto the bonding bill, a priority shared by House Tax Chair, Paul Marquart (DFL-Dilworth) and Senate Tax Chair, Roger Chamberlain (R-Lino Lakes), and others who understand that this could bring needed tax relief to many farmers and small business.

However, and despite this seeming progress, the House minority maintained that they were not adequately included in negotiations and that the Governor’s concessions weren’t meaningful enough to warrant support and the legislature again adjourned without passage.

Following work at the end of regular session, the Minnesota Department of Agriculture (MDA) rolled out a program that will cover half of eligible farmers’ loan guarantee fees on USDA FSA restructuring loans, an initiative MFU was proud to support.

“This program is aimed at helping farmers most affected by the COVID-19 pandemic,” MDA Commissioner Thom Petersen said. “We want to help more farmers get successfully through the mediation process.” More information about applying can be found here.

On the federal level, lawmakers continue to negotiate another round of stimulus. Priorities being negotiated include further direct relief for farmers, investments in meat processing, and support for biofuels infrastructure. Now over two months ago, the U.S. House passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, a $3 trillion aid package that would provide relief across the economy. The bill includes significant relief for agriculture, though falls short of the systemic reforms needed to ensure that our food system is fair for family farmers and resilient. Significantly, the bill invests another $16.5 billion in direct support for farmers, strengthens mental health resources, expands nutrition assistance, and bolsters the struggling biofuels industry.

If you’re interested in engaging with federal lawmakers, a great way to do that is to sign up for the virtual Farmfest candidate forums on August 4.

A widely anticipated special session of the Minnesota Legislature is expected to convene as soon as the end of this week. The session is nearly assured given that if the Governor extends his emergency authority to do with the pandemic—which he needs to do by Friday, June 12—state law requires that the Legislature be called back.

What lawmakers plan to accomplish is much less certain. Lawmaker priorities—and the status of negotiations between the Governor and House and Senate leadership—have undoubtedly shifted due to the killing of George Floyd by Minneapolis police and the resulting demands for transformation in the criminal justice system. Democratic leaders on criminal justice were quick to advance that conversation by bringing forward a list of proposals, new and old, that will help keep people—particularly Black, Indigenous and people of color—safe.

At Farmers Union, we’ve worked to make clear that while the focus has rightly been on metro communities, rural and agricultural communities can and need to face our legacy of racism and be part of building a more just food system.

“If we stand idly by while our friends and neighbors suffer—as too many of us have done for too long—we are complicit in their suffering,” said NFU President Rob Larew in a statement. “To overcome the terrible legacy of racism in this country, we all must reflect on our own privileges and prejudices, rethink our institutions and demand structural change.”

Outside of the immediate issues facing the state and elected leaders to do with law enforcement, public health and economic recovery, the Legislature still has outstanding issues to address. That includes a bonding bill that jumpstarts our state’s economy by making needed long-term investments in infrastructure and needed fixes to our tax law that ensure that farms and businesses are treated fairly.

On taxes, MFU supports full conformity with Section 179, which would allow farmers and small business owners to expense the full value of equipment in the tax year when it’s purchased. This issue priority gained new urgency when it came to light that an unintended consequence of last year’s tax bill was that some farmers who traded in equipment were being retroactively asked to pay taxes on the trade-in value as income.

Full conformity with Section 179 would help address this issue for farmers and others. However, the unanticipated, significant and still-developing budget pressures brought on by the pandemic make the upwards of $200 million investment in this change unlikely this year. In the House, Tax Chair Rep. Paul Marquart (DFL-Dilworth) has made addressing this issue—particularly for farmers and others who were charged retroactively—a top priority.

At the end of regular session, Chair Marquart proposed a tax bill that would invest in addressing retroactive tax bills by allowing full conformity for 2018 and 2019, then going forward allowing farmers and others who trade in equipment to stretch out their tax liability to match up with what they are allowed to expense under Section 179. It’s not a perfect solution, but a creative one that could be accomplished this year.

Across the country, the pandemic has brought corporate consolidation and the need for antitrust enforcement in the food and ag sector into renewed focus. Last week, four current and former executives at Pilgrim’s Pride Corp. and Claxton Poultry Farms were indicted today for colluding to inflate the price of birds. Two days later, the Department of Justice (DOJ) antitrust division formally demanded information from the four largest beef packers in the U.S. This action followed a joint letter sent from 11 state attorneys general, including Minnesota Attorney General Keith Ellison, urging Attorney General William Barr to open a formal investigation into anticompetitive practices by meat packers.

“The beef market isn’t working for producers or consumers right now—instead of a fair, competitive market, it has the hallmarks of manipulated, anti-competitive market,” Ellison said. “I joined this bipartisan coalition to ask the DOJ to ask to investigate and put an end to unfair business practices because making sure that the market is fair for both farmers and producers in Minnesota is just common sense.”

MDA announces changes in use of dicamba

Upon further review of state law and while awaiting guidance from the U.S. Environmental Protection Agency on the ruling of the 9th U.S. Circuit Court of Appeals regarding dicamba products, the Minnesota Department of Agriculture will continue operating under existing pesticide program authorities. According to Minnesota law, an unregistered pesticide previously registered in the state may be used following the cancellation of the registration of the pesticide.

At this time Minnesota farmers can use XtendiMax with VaporGrip Technology (EPA Reg. No. 524-617), Engenia Herbicide (EPA Reg. No. 7969-345), and DuPont FeXapan with VaporGrip Technology (EPA Reg. No. 352-913) while following all federal and Minnesota label requirements. (Tavium Plus VaporGrip Technology (EPA Reg. No. 100-1623) was not part of the two-year federal registration and can still be used according to the label.) The Department does not anticipate taking enforcement action against those who continue to appropriately use these products. This may change at any time pending additional guidance from EPA.

“The Circuit Court of Appeals decision to revoke the use of these products was, unfortunately, very untimely for our farmers as many had already purchased the herbicide for this growing season,” said Minnesota Agriculture Commissioner Thom Petersen. “Timing is critical for farmers to apply the products and our further interpretation of Minnesota law allows us to use these products.”

As a reminder, all dicamba pesticide applicators in Minnesota must follow use instructions on the product label including the timing restrictions below. Dicamba products cannot be applied to dicamba-tolerant (DT) soybeans in Minnesota if any of the following conditions has occurred. Whichever cutoff time occurs first will determine whether a person can apply a given product to DT soybeans until June 20, 2020.

Forty-five (45) days after planting: The federal labels for XtendiMax, Engenia, FeXapan, and Tavium prohibit application more than 45 days after planting.

Once the R1 growth stage begins (beginning bloom): The federal labels for XtendiMax, Engenia, and FeXapan prohibit this. The R1 stage is when at least 1 flower appears on the plant on any node on the main stem.

After the V4 growth stage: The federal label for Tavium prohibits application after the V4 growth stage.

After June 20: The Minnesota Special Local Need (SLN) label, which must be in possession of the applicator at the time of application, prohibits this for all four dicamba products.  The SLN labels are available on the MDA website at mda.state.mn.us/24c

In Minnesota, all four dicamba products are “Restricted Use Pesticides” for retail sale to, and for use only by, certified applicators who have complete dicamba or auxin-specific training.

For questions, e-mail Josh Stamper at Joshua.Stamper@state.mn.us.

Yesterday, after a marathon weekend remote voting, floor speeches and last-minute negotiations via Zoom, the state Legislature effectively concluded their work for the 2020 regular session. While today marked the constitutional deadline, the Legislature can’t pass bills during the final day, which is mostly reserved for retirement speeches.

With much legislative work on the table—and so many looming challenges facing families and communities across the state—this end was less than triumphant. That said, it is widely accepted that they will reconvene for a special session, likely in mid-June. This is true not only because of the big ticket items they still need to accomplish, namely: a bonding bill, final approval of state worker contracts and additional COVID-19 relief, but also because state law requires the Legislature to convene if Gov. Walz extends his emergency powers for a third time when they expire on June 12.

While some big-ticket items were left to the special session, agriculture again was a bright spot of bipartisan work. In the final days, House and Senate leaders worked together to pass supplemental ag policy and finance bills, which invested in MFU priorities including:

• $40,000 for rural mental health, with added capacity for outreach to farm and rural youth.
• $60,000 for MDA Farm Advocates to add capacity, particularly in the southwest region of the state, and help keep farmers on the farm.
• $100,000 for farm safety grants and outreach, building on the Rollover Protection Structures (ROPS) Rebate program and funding up to $400 grants for farmers. purchase, ship and install grain storage safety equipment, like fall protection systems or silo air quality monitoring equipment.
• $100,000 to expand local meat and poultry processing, through grants to independently or employee-owned processors, building on grants already made available in response to COVID-19.
• $100,000 to assist farmers and value-added businesses whose markets were negatively impacted by COVID-19.
• $175,000 for farm loan origination fee grants, reimbursing farmers for 50 percent of the fee required to obtain a FSA guaranteed loan or RFA program loan, providing Farm Advocates and others with another resource with which to assist farmers who are in financial trouble.
• $675,000 for ag emergency preparedness, providing needed funding to the University of Minnesota’s (UMN) Veterinary Diagnostic Laboratory (VDL) to guard against an animal disease pandemic comparable to COVID-19.
• Creating an Emerging Farmers Taskforce to continue to advise the Department on how best to support young farmers, farmers of color, indigenous farmers and others.

These initiatives were championed by House Agriculture Chair Jeanne Poppe (DFL-Austin) and Senate Chairs Torrey Westrom (R-Elbow Lake) and Bill Weber (R-Luverne). In a release highlighting this work, MFU President, Gary Wertish, shared that “the challenges facing Minnesota’s farmers cannot be understated and the strategic resources made available by [the supplemental ag finance bill]—while limited—will help the farmers, their communities and Minnesota Department of Agriculture (MDA) continue to respond to this evolving crisis.”

Lawmakers also unanimously approved a further extension to Farmer-Lender Mediation deadlines, before which lenders can’t—without the farmer’s permission—collect on a debt. This initiative, championed by Rep. Todd Lippert (DFL-Northfield) and Sen. Mike Goggin (R-Red Wing), moves the deadline to Dec. 1, 2020, giving farmers breathing room this growing season. As President Wertish stated, “extending the deadline would not only give farmers and lenders more time to reach a mutually beneficial plan for managing debt—which is warranted given the unprecedented challenges farmers are facing—but also allow them to resume this work when they are able to meet face-to-face.”

While lawmakers succeeded in reaching compromises on a number of MFU priorities in the ag space, there is still much we’ll be following up on. First, the “bonding bill,” which refers to a large package of capital investments that the state funds through borrowing, should fund a number MFU priorities including local water infrastructure projects, road upgrades and other local projects. Investments we support include funding for the Northeast Regional Corrections Center (NERCC) to update their meat processing facility, which helps local livestock farmers and provides vocational training to inmates. This project has strong support from the House Capital Investment Chair Mary Murphy (DFL-Hermantown) but was left out of the Senate’s more limited proposal. Investing in ag emergency preparedness by making needed upgrades to the laboratory shared by MDA and the MN Department of Health was included in both chambers’ proposals.

Second, MFU strongly supports new investments on broadband development, linking every farmstead with the high-speed broadband internet needed to participate in today’s economy. With remote work, distance learning and an increased reliance on telehealth, the pandemic has only brought the great need for these investments into sharper focus. Competing proposals to spend an additional $10 million on the state’s Border-to-Border Grant Program were debated in both the House and Senate in the final weeks of session, though a compromise position failed to materialize before the time ran out. The Senate passed SF 4494 on May 4 and sent it to the House for consideration. The House amended SF 4494 to reflect their priorities in the Ways and Means Committee on May 15 and moved it to the House floor. There, it awaited legislators to negotiate an agreement that would resolve the differences between the House and Senate positions.

On the federal level, the United States House passed an ambitious package, dubbed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, aimed at providing relief to working families who’ve been hit hard by the pandemic. The bill includes significant relief for agriculture, though falls short of the systemic reforms needed to ensure that our food system is fair for family farmers and resilient. Significantly, the bill invests another $16.5 billion in direct support for farmers, strengthens mental health resources, expands nutrition assistance and bolsters the struggling biofuels industry. In all, the package calls for a historic $3 trillion in spending.

National Farmers Union issued a statement in support of the bill, and NFU President Rob Larew said, “As rural communities cope with widespread unemployment, a growing rate of coronavirus cases and underfunded medical facilities, all of these changes are urgently important and greatly appreciated.”

On the Senate side, Senator Tina Smith (D-Minn.) joined Senators Chuck Grassley (R-Iowa) and Jon Tester (D-Mont.) in introducing legislation aimed at increasing market transparency for cattle producers. The bill, which MFU supports, would require that meat packers purchase at least 50% of their weekly volume on the open or spot market. The lack of transparency in cattle markets isn’t a new problem, but it’s been brought into harsh light by the disparities between cattle prices and the cost of boxed beef paid by consumers.

“We must help livestock producers in Minnesota and nationwide get a fair and accurate price for their animals,” Smith, a member of the Senate Agriculture Committee and leader of the bipartisan Senate Rural Working Group, said. “It’s important to promote transparency and improve efficiency in the livestock markets, and our bipartisan bill will go a long way to achieving these goals.”

Last week, President Donald Trump issued an executive order designating the facilities as “critical infrastructure.” The order, which invokes the Defense Production Act, directs the U.S. Department of Agriculture to “ensure America’s meat and poultry processors continue operations uninterrupted to the maximum extent possible.”

The decision follows the temporary closure of at least 22 meat plants due to COVID-19 outbreaks among workers. As a result, national meat processing capacity has fallen by 20%, costing family farmers and ranchers key markets and risking meat shortages at grocery stores. And farmers are forced to euthanize hogs, which raises questions of how to dispose of these hogs in environmentally sound ways.

Though we share the president’s concerns around maintaining food system infrastructure, we are equally concerned with the health and well-being of meat plant employees. According to data collected by the Food and Environment Reporting Network, more than 4,000 workers at 85 plants have tested positive, at least 20 of whom have died. Per the executive order, “processors will continue to follow the latest guidelines from the Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA),” though does not indicate if or how those guidelines will be enforced. Additionally, President Trump indicated that he would absolve the plants from liability for illnesses or deaths among workers.

This past week, Gov. Tim Walz, House Agriculture Committee Chair Collin Peterson, Minnesota Agriculture Commissioner Thom Petersen and others held a news conference at the JBS plant in Worthington, one of the plants forced to close due to COVID-19 spread. They expressed concern on behalf of farmers and workers alike, and explained that while keeping the plants open is important for farmers, it cannot be at the expense of worker safety.

Commissioner Petersen and the MDA continue to work on connecting livestock farmers with processors who have capacity. Producers can contact Jim Ostlie, 320-842-6910 or Jim.Ostlie@state.mn.us, or Courtney VanderMey, 651-201-6135 or Courtney.Vandermey@state.mn.us. They’re also working with their state-inspected, ‘equal-to’ processors to expand capacity by standing up more than $345,000 in AGRI Value-Added Grants for nine Minnesota meat processors. Processing plants who are interested in expanding their capacity should contact Jennifer Stephes at 651-248-2566. MFU is in discussion with MDA and other stakeholders weekly about farmers’ situations.

We recognize that some farmers have unfortunately had to euthanize hogs with nowhere to send them. The Minnesota Board of Animal Health has issued a set of guidelines for carcass disposal. We know this is incredibly difficult if you’ve had to go through this, so please reach out to us and others you trust for support.

Today, the State Senate voted to confirm Thom Petersen as Minnesota’s Commissioner of Agriculture. As confirmation is largely a formality—and not assumed for every cabinet-member—a vote from a Republican Senate in support of an appointee in a Democratic administration speaks volumes about the trust in Petersen’s leadership.

Prior to the vote, Senate Agriculture Policy Chair, Bill Weber (R-Luverne), reflected on his eight years working with Thom, stating that he has “certainly proven his knowledge and ability” to work on behalf of farmers of all sizes and producer types.

And Senator Kari Dziedzic (DFL-Minneapolis), the minority lead on the Agriculture Finance Committee, shared that “[Thom’s] leadership brings people together to . . . help farmers and the farm economy—from dairy assistance, to ag emergency preparedness, to farmer mental health, and now to the COVID-19 situation.”

Of course, many MFU members got to know Thom well in his 17 years as the organization’s Government Relations Director where he elevated member voices and brought together broad coalitions in order to achieve meaningful legislative wins including creating legal protections for farmers engaging in agritourism, increasing access to locally-grown, healthy foods and paving the way for industrial hemp in Minnesota. Prior to a favorable vote from the Senate Agriculture Policy Committee, MFU President Gary Wertish submitted a letter in support of his confirmation.

“In many ways, agriculture is at an inflection point,” wrote Gary in the letter. “To use a phrase that Thom employs often, ‘every day there are [challenges and opportunities] . . . Thom is humble, thoughtful, and carries the stories of Minnesota’s farm families in his heart every day. I can’t think of anyone better prepared to lead us through these challenges and help us take advantage of new opportunities.”

Though this letter was submitted prior to the pandemic that has brought new and added challenges to Minnesota’s family farmers and others in every corner of the state, these words still ring true.

Also a testament to Thom and his team’s work, as the legislature continues limited and remote activity, both the House and Senate are set to take up a bill containing technical and policy changes needed for the agency to continue their work serving farmers and the ag community.

On the federal level, Congress approved another $484 billion in COVID-19 relief package that two SBA programs aimed at providing small businesses—including farms—with the financial resources needed weather the pandemic. President Trump signed the bill into law on Saturday, April 24, releasing $310 billion for the Paycheck Protection Program (PPP) and $60 billion for the Economic Injury Disaster Loan (EIDL) program.

Loans through the PPP are available to farms—including sole proprietors, per this guidance from USDA—and are forgivable if they are used to pay for “payroll, interest on mortgages, rent and utilities.” In an effort to make these funds stretch farther than the first $349 billion, which met criticism when payments where made to large companies, like Potbelly or Shake Shack, legislators secured changes including a $60 billion set-aside for small banks, credit unions, and other lending institutions.

Funds are limited and will go extremely quickly, so if you’re interested in receiving funding, you should speak with your lender as soon as possible. Complete applications submitted to lenders before the program ran out of money can now be submitted.

Unlike the PPP, farmers and others can apply EIDL for funds directly from the SBA. That said, the portal to do so has not yet been reopened on the SBA’s website. Unlike the previous version of EIDL, this new bill makes “agriculture enterprises” under 500 employees eligible for forgivable ‘loan advances’ of up to $10,000 and low-interest loans of up to $2 million. Opening up this program and others is something Gary asked for in a letter he sent to our federal delegation and NFU pushed for here.

As of Monday afternoon, the USDA still hadn’t announced more details about the Coronavirus Food Assistance Program (CFAP), which provided a rough outline of how the agency will distribute $16 billion in direct aid to producers and $3 billion in purchases of fruit, vegetables, dairy, and meat for food banks.

Finally, the Minnesota Agriculture Department is working to limit disruptions associated with meat processing plant closures by identifying slaughter facilities and other market opportunities for producers with smaller herds or flocks. These producers can contact Jim Ostlie, 320-842-6910,  Jim.Ostlie@state.mn.us or Courtney VanderMey, 651-201-6135, Courtney.Vandermey@state.mn.us.

They’re also working with their state-inspected, ‘equal-to’ processors to expand capacity by standing up over $345,000 in AGRI Value-Added Grants for nine Minnesota meat processors. Processing plants who are interested in expanding their capacity should contact Jennifer Stephes at 651-248-2566.

We recognize that some farmers have unfortunately had to euthanize hogs with nowhere to send them. The Minnesota Board of Animal Health has issued a set of guidelines for carcass disposal. We know this is incredibly difficult if you’ve had to go through this, so please reach out to us and others you trust for support.

Yesterday, the state legislature reconvened to approve a fourth COVID-19 relief package aimed at addressing immediate health risks associated with the pandemic and providing relief to families and businesses across the state. The bill (HF4556/SF4462) was approved by bipartisan majorities in both houses, passing 103-31 in the House and 64-3 in the Senate. While this package was far more limited in size and scope than the $330 million package signed into law at the end of March, it did include provisions that could make a real difference for many farmers across the state.

First, the bill included an extension to farmer-lender mediations that seeks to give farmers who are currently under mediation the chance to meet with their lender face-to-face once it is safe to do so. This was a priority for us because mediations are stressful and, particularly in rural areas with lack of access to quality broadband internet, are not easily done over an online platform, like Zoom.

As MFU President Gary Wertish explained in his letter to legislative leaders earlier this month, “mediations—even in the best of circumstances—are inherently high-stress, often emotional, and best done through face-to-face meetings that are currently untenable due to the ‘Stay at Home’ order and concerns over public health.”

Farmer-lender mediation originated during the 1980s farm crisis in order to compel creditors to first give farmers the opportunity to negotiate alternatives to foreclosures, repossessions or cancellations of a contract for deed, giving them a greater chance of saving their farm business and staying on the land. With Tuesday’s temporary change, the period before which creditors aren’t allowed to enforce a debt subject to the Farmer-Lender Mediation Act is extended from 90 to 150 days, an extension that goes into effect immediately and applies to all mediation requests filed before July 31, 2020.

Second, the legislation includes an additional $1.25 million in grants for Second Harvest Heartland to purchase and distribute milk and other protein products to food banks across the state. Not only will this help alleviate the hunger experienced by many families, it will also boost demand for Minnesota agricultural products at a time when ag markets are being devastated by the pandemic.

Finally, the bill includes a provision allowing the Commissioner of Public Safety to develop a process for granting seasonal Commercial Drivers Licenses (CDLs) in a way that allow social distancing. This is important to some ag related businesses who rely on these CDLs to move seasonal ag inputs. This change follows the Governor’s Executive Order (20-27) waiving the hours of service requirement for truck drivers hauling fertilizer or livestock feed.

Both these actions reflect the administration’s ongoing effort to prevent disruptions throughout the food and agriculture supply chain. You may have heard about coronavirus outbreaks at large meat processing plants that have caused closures and disruption. Commissioner Petersen and the MDA are also monitoring the situation at meat packing plants closely and actively working to prevent and prepare for potential additional plant closures and other disruptions. Among other actions, they are surveying state-inspected “Equal 2” processing plants to determine whether they have additional processing capacity.

Per Commissioner Petersen, MDA staff Jim Ostlie and Courtney VanderMey are working to match farmers with plants who are in need of processing. Their contact info is:

Jim Ostlie: 320-842-6910 or Jim.Ostlie@state.mn.us

Courtney VanderMey: 651-201-6135 or Courtney.VanderMey@state.mn.us

Here is MDA’s plant list: https://www.mda.state.mn.us/minnesota-state-equal-plants

If you have any questions, thoughts, or concerns about meat processing—or anything else—you should not hesitate to reach out to the Department at mdaresponse@state.mn.us.