Legislative Update – May 7, 2018
Wertish testifies on buffer compensation
On Wednesday of this past week, MFU President Gary Wertish testified on behalf of MFU in support of H.F. 4395 authored by Rep. Paul Anderson in front of the House Property Tax Division. H.F. 4395 provides a property tax credit of $50 per acre for property required to be maintained as a buffer. Compensation for buffers has been a top issue for MFU since the law was passed in 2015. This would not be for land currently enrolled in a conservation program like CRP. The bill was passed to the House Tax Committee where it will receive a hearing Tuesday morning. Sen. Bill Weber is the Senate author.
Fugitive Dust bill passes Senate
S.F. 3182 authored by Sen. Torrey Westrom passed the Senate this week by a vote of 65-0. House File 3441 exempts temporary storage facilities located at dry bulk agricultural commodity facilities, such as grain elevators and ethanol plants, from fugitive dust emission limits contained in Minnesota Rules, provided that the temporary storage facility is serviced with portable equipment. This issue was brought up due to corn piles in the fall of the year, the House will take the bill up this week and Rep. Jeff Backer is the author.
Ditch mowing bill passes Senate
S.F. 3569 authored by Sen. Gary Dahms passed the Senate this week 53-13. The bill extends the current moratorium for enforcing permits for mowing and haying along state highways for another year. The current moratorium passed by the legislature last year expired April 30. Rep. Chris Swedzinksi is the House author and they are likely to take the bill up later this week. For more information from MNDOT, see https://www.dot.state.mn.us/mowing/
Tax Bills
Both the House and Senate have completed work on their omnibus tax bills and are headed to conference committee. A top issue for MFU is conformity with Section 179 (accelerated depreciation) which was included in both the House and Senate bill. The language will conform Minnesota’s current $25,000 to the Federal level of $1 million dollars. The House bill also includes language championed by Rep. Steve Drazkowski and Rep. Paul Marquart which would create as Task Force to look at building upon last years 40 percent ag school credit and moving Minnesota to house, garage and one acre for capital levies similar to operating levies.
Rural Finance Authority
The House has moved H.F. 4425 authored by Rep. Tim Miller through the Ways and Means committee this past week, the bill authorizes $35 million in funding for the Rural Finance Authority (RFA). The language is also included in omnibus bills and in the House Capital Improvement bill. MFU is urging legislators to act soon on this legislation as the RFA is expected to run out of funding as early as June of this year. Sen. Rich Draheim is the Senate author.
Farm driver’s licenses
MFU was pleased to see Sen. Westrom add language to the giant omnibus budget bill this past week that modifies some of the requirements for a restricted driver’s license that can be issued for farm work, to:
– permit unaccompanied driving within 40 miles of the farmhouse, which is increased from 20 miles; and
– clarify that the license is available for work on any type of farm, regardless of how it is legally constituted. The restricted farm work license functions as a hybrid between an instruction permit and a provisional license, allowing for unaccompanied driving to assist in farming activities.
In the House, Rep. Deb Kiel has worked on this legislation that MFU has long supported.
Board of Animal Health
The Senate’s large budget omnibus bill that passed recently includes language that creates a Chronic Wasting Disease Task Force and Board of Animal Health Task Force. The latter has a spot for MFU. Much of this is based on a report by the Legislative Auditor looking at their handling of Deer and Elk Farms. You can see the report here: httpss://www.auditor.leg.state.mn.us/ped/2018/deerfarms.htm
Canadian Consulate
This past week, MFU President Gary Wertish, MFU VP Bryan Klabunde and I participated in a conference call with the Minnesota office of the Canadian Consulate. MFU raised concerns about access to Canadian dairy markets for Minnesota farmers and discussed the Canadian supply management program. Members who have ideas or concerns are encouraged to contact us.
Biodiesel
This past week, Minnesota became the first state to blend 20 percent biodiesel in the summer months. This week the House will take up S.F. 3596 authored by Rep. Paul Anderson. This bill would modify the state’s biodiesel use mandate. The biodiesel mandate law generally requires that each gallon of Number 2 diesel fuel sold in the state be 10 percent biodiesel (B10). On May 1, this requirement doubled to 20 percent, or B20. However, until state agencies certify that certain conditions have been met and declare that the B10 (or soon, B20) mandate applies year-round, from October through March each year the mandate reverts to 5 percent (B5) due to concerns about the cold-weather performance of B10/B20. The bill provides that from April 1 to April 14 each year, the minimum biodiesel content requirement is temporarily reduced to no less than ten percent. Under current law, the B10/B20 requirement begins April 1 each year. The bill also extends the biodiesel mandate exemption for Number 1 diesel indefinitely. MFU supports this legislation that passed the Senate recently by a 67-0 vote.
House omnibus spending bill
The House this past week passed their bill that includes spending and policy for agriculture, of interest to MFU is increased dollars for mental health counseling for farmers and for Farm Advocates. The bill also includes language requiring legislative approval for the Nitrogen Fertilizer rule also known as the Groundwater Protection Act. MFU has indicated that this is not needed as most of our members are able to work within this proposed rule. The Governor opposes the inclusion of this legislation. The bill also includes language for the creation of a rural energy feasibility loan program within the RFA.
Cottage Food Language
Language championed by Rep. Jim Newberger was amended onto the omnibus bill that contains agriculture provisions in the House. Under current law, eligible individuals who produce and sell no more than $18,000/year of certain foods are not required to obtain a food handler license from the Minnesota Department of Agriculture. This is often referred to as the “cottage foods” exemption. This bill would allow an eligible limited liability company (LLC) to qualify for this exemption as well, subject to certain liability insurance requirements specified in the bill. Members who have questions about this provision are encouraged to contact me.
MN Care Buy-In debated
This past week the House had a spirited debate about the proposed Minnesota Care Buy-In program after language was included in the House omnibus portion that included the Department of Human Services budget that would forbid them from using dollars to promote or work on a MN Care Buy-in program. Rep. Clark Johnson offered an amendment to H.F. 3138 to remove that language that failed 51-76. Republicans raised concerns about rural hospitals and reimbursement rates. MFU continues to support a Minnesota Care Buy-In option and will continue to work on this issue.
Wolf-livestock conflict $ available
New money is available to Minnesota livestock producers to help prevent wolf attacks. The Wolf-Livestock Conflict Prevention Grants provide $120,000 for the upcoming fiscal year (July 1, 2018 – June 30, 2019). Applications are due June 29 to the Minnesota Department of Agriculture. The grants provide reimbursement for costs of approved practices to prevent wolf-livestock conflicts. Eligible expenses for the grant program will include any or all of the following items:
– Purchase of guard animals
– Veterinary costs for guard animals
– Installation of wolf-barriers which may include pens, fladry and fencing
– Installation of wolf-deterring lights and alarms
– Calving or lambing shelters
– Other measures demonstrated to effectively reduce wolf-livestock conflicts
Producers must live within Minnesota’s wolf range, as designated by the Minnesota Department of Natural Resources, or on property determined by the Commissioner of Agriculture to be affected by wolf-livestock conflicts. Any animal species produced for profit and documented to have been killed by wolves in Minnesota in the past is eligible. This includes bison, cattle, chicken, deer, donkey, duck, geese, goat, horse, llama, mule, sheep, swine and turkey. The grant application must be emailed or postmarked by 5 p.m. on June 29. Work for this grant cycle must be done and expenses reported by June 30, 2019. The application and more information can be found at https://www.mda.state.mn.us/grants/disaster/wolf/wolfconflictprevent.aspx
This is the second round of grants available to the state’s livestock owners after the Minnesota Legislature provided funding to the Minnesota Department of Agriculture in 2017. The first round awarded $120,000 to 25 producers in 12 counties of the state. Grantees are using the money for items like fencing, guard animals, and motion lights – all deterrents to wolves.
That is all for now, as usual, questions, comments and concerns to me at thom@mfu.org.
Legislative Update – April 23, 2018
Governor Dayton on buffer bill
Governor Mark Dayton Friday thanked Republican legislators for supporting a tax credit to help alleviate the cost of compliance with state water quality requirements. The tax credit would provide eligible landowners $50 per acre, each year, for farmland converted to water quality buffers. Governor Dayton first proposed a version of this tax credit as part of his 2017 Tax Bill. “I thank Representative Paul Anderson and Senator Bill Weber for authoring this sensible, bipartisan proposal to support Minnesota farmers, who are working to protect clean water throughout our state,” said Governor Dayton. “I strongly support this legislation and encourage Republican Legislative Leaders to send it to me, as a clean bill, as soon as possible.” The proposed tax credit would allow Minnesota landowners who have installed water quality buffers on tillable land to receive the tax credit, even if they installed the buffers before the new water quality law went into effect. This bipartisan legislation is being authored in the Minnesota House of Representatives (HF 4395) by Representatives Paul Anderson, Bob Gunther, Jeff Backer, Chris Swedzinski, Joe Schomacker, and Paul Marquart, and in the Minnesota Senate (SF 3960) by Senators Bill Weber and Gary Dahms. MFU supports this legislation.
Biodiesel bill clears Senate
This past week, S.F. 3596, authored by Sen. Bill Weber, passed the Senate 67-0. This bill would modify the state’s biodiesel use mandate. The biodiesel mandate law generally requires that each gallon of Number 2 diesel fuel sold in the state be 10 percent biodiesel (B10). On May 1, 2018, this requirement will double to 20 percent, or B20. However, until state agencies certify that certain conditions have been met and declare that the B10 (or soon, B20) mandate applies year-round, from October through March each year the mandate reverts to 5 percent (B5) due to concerns about the cold-weather performance of B10/B20. The bill provides that from April 1 to April 14 each year, the minimum biodiesel content requirement is temporarily reduced to no less than ten percent. Under current law, the B10/B20 requirement begins April 1 each year. The bill also extends the biodiesel mandate exemption for Number 1 diesel indefinitely. Rep. Paul Anderson is the House author and MFU supports this legislation.
Forever Green
MFU was pleased to see $500,000 included in the House Legacy bill H.F. 4167 authored by Rep. Bob Gunther. The bill says $500,000 in fiscal year 2018 is appropriated from the clean water fund to the commissioner of agriculture for grants to the Board of Regents of the University of Minnesota to fund the Forever Green Agriculture Initiative and to protect the state’s natural resources while increasing the efficiency, profitability, and productivity of Minnesota farmers by incorporating perennial and winter-annual crops into existing agricultural practices. This is a onetime appropriation and is available until June 30, 2022.
RFA bill heard
This past week H.F. 4425 authored by Rep. Tim Miller was heard and passed in the Capital Investment Committee and sent to the Ways and Means Committee. The bill says $35,000,000 is appropriated from the bond proceeds fund to the Rural Finance Authority. The RFA is currently has less than $7 million left of the $35 million appropriated last year. Sen. Rich Draheim is the Senate author and MFU supports this legislation.
Omnibus Agriculture bill
Both the House and Senate Agriculture Finance committees passed their omnibus agriculture bills this past week the House bill includes an additional $30,000 for the Farm Advocate program and over $200,000 more for mental health counseling. In addition, it includes language creating a new Rural Energy Feasibility loan within the RFA to provide feasibility study loans to farmers, local units of government, municipalities and nonprofit entities to explore feasibility of renewable energy projects.
Nitrogen Rule Update
From Session Daily: The Department of Agriculture would not have the final say on adopting rules regulating nitrogen fertilizer application under provisions of a bill passed 69-56 by the House last week. But Gov. Mark Dayton may. Sponsored by Rep. Jeff Backer (R-Browns Valley), HF2887 would prohibit the department from adopting new nitrogen rules unless they are specifically approved by law. The bill now travels to the Senate where Sen. Mark Johnson (R-East Grand Forks) is the sponsor. Dayton proposed new rules to reduce nitrate levels in the state’s drinking water in March. Elevated levels of nitrates can be harmful to humans. The proposal includes restricting the application of fertilizer in some areas of the state most vulnerable to nitrates leaching into the groundwater. In response, Rep. Rod Hamilton (R-Mountain Lake) and Rep. Paul Anderson (R-Starbuck) – chairs of the agriculture finance and policy committees, respectively – sent a March 6 letter to Dayton calling on him to “abandon his efforts to enforce this unpopular proposition via administrative rule” and instead work the Legislature to ensure maximum input. However, in a letter to Hamilton and Anderson on Monday, Dayton promised to veto any legislation reaching his desk that prohibits implementation of the rule or repeals the executive branch’s rulemaking authority.
MDA announces nitrogen rule coming
During a hearing in the House this past week MDA announced that the Nitrogen Fertilizer Rule would be released Tuesday, April 24 and placed in the State Register April 29 followed by a near 2-month comment period. MFU will share the rule with members when it is published. Reminder that MDA has a map on their website where you can see how the rule affects you: httpss://www.mda.state.mn.us/nfr
Ag Credit
The Property Tax Division in the House this week included language in their Division report from Rep. Steve Drazkowski’s HF 2495 that builds upon the success of last year’s 40 percent credit for school capital improvement levies by moving Minnesota to House, Garage and 1 acre for building referendums similar to operating levies for levies voted on after June 30, 2021. Rep. Paul Marquart has worked very closely with Rep. Drazkowski on this and Sen. Mark Johnson is the Senate author, you can see research sheet here: https://www.house.leg.state.mn.us/hrd/bs/90/HF2495.pdf
Broadband Update
From the MN Broadband Coalition to which MFU belongs: This past week the Senate and House Jobs Committees passed their omnibus supplemental budgets this week and included $15 million in new funding for the Border-to-Border Broadband Grant Infrastructure Program. Although this funding is well below the $51.48 million the Coalition recommended, and half of what Governor Dayton requested, we are still pleased at this stage of the process to have this support
Legislative Audit Report on Board of Animal Health
The Office of the Legislative Auditor has released the evaluation report, Board of Animal Health’s Oversight of Deer and Elk Farms. The report is available at the Office of the Legislative Auditor, Room 140, Centennial Building, 658 Cedar Street, St. Paul, or online at httpss://www.auditor.leg.state.mn.us/ . MFU will be looking into the report which recommends adding a public member to board, which currently has 5 members. Minnesota is home to about 400 deer, elk and other cervid farms.
Meat Tax?
I have had a few members ask me about HF 3814 authored by Rep. Jim Nash in the House which was included in the House Property Tax Division Report this past week. Affectionately known around the Capitol as the “Meat Tax,” the bill would modify the current statutory general prohibition against local government imposing a tax on income or sales by explicitly prohibiting an increase or new excise tax or fee on food and beverages or their containers at any levy in the distribution process. The prohibition applies to volume and unit taxes as well as those based on value. It applies to food for both human and annual consumption. Local governments that want to impose a tax despite this prohibition would have to seek special legislation. Could a local government put a tax on meat? Not likely, but maybe soda as we have seen, but not in Minnesota. Sen. Andrew Matthews in the Senate author.
Minnesota Farmers Union opposes House Farm Bill as drafted
Last week, House Agriculture Committee Chairman K. Michael Conaway, R-Texas, released the first draft of the 2018 Farm Bill. Bipartisan negotiations on the bill had broken down a few weeks prior after a dispute over the Supplemental Nutrition Assistance Program (SNAP)’s work requirements. Conaway and committee Republicans decided to move forward with a partisan bill, which sets a dangerous precedent. Committee Ranking Member Collin Peterson, D-Minn., said this week he opposes the bill in its current form. Minnesota Farmers Union (MFU), a St.-Paul based grassroots family farm organization, also opposes this partisan Farm Bill. MFU President Gary Wertish issued the following statement: “Traditionally, agriculture has been an area in which both major parties work well together. Unfortunately, ideological arguments have split up that bipartisan coalition in the House Agriculture Committee. “We urge the committee to return to bipartisan negotiations on the Farm Bill. Family farmers and rural communities will not have their needs met if the committee does not collaborate. Agriculture and rural communities do not have an adequate safety net in this bill. Cuts to the Conservation Stewardship Program, Rural Energy for America Program and local foods programs threaten resources for climate stewardship and crucial market opportunities. Farm income has declined by more than 50 percent since the last Farm Bill was written, and the House’s bill does not go far enough to stem the economic crisis.
Walz statement on Farm Bill
U.S. Representative Tim Walz (MN-01) released the following statement after voting against the partisan Agriculture and Nutrition Act of 2018 (H.R. 2) before the House Committee on Agriculture. “I represent the ninth largest agricultural-producing district in the nation. I came to Congress in part to help write Farm Bills. I came to Congress to try and get policy right. I came to work together with my colleagues on both sides of the aisle. What Republicans did today – namely, bringing an ideological bill up for consideration that lacked bipartisan support, failed to go through the regular committee process, and abandoned our farmers, consumers, veterans and children in the process – is not how this committee has normally functioned. It is not how this committee is supposed to function. It is not how a democracy is supposed to function. “Folks back home in the First District are fed up with the hyper-partisanship in D.C. What they want is for us to work together to get things done, and I’ve tried to live up to this reasonable expectation every single day. At such a critical time in our democracy, I ask Chairman Conaway and the rest of my Republican colleagues on the House Committee on Agriculture to consider this as we move forward: if we don’t fix the problem of partisanship plaguing Washington, who will?”
Peterson urges Trump to halt RFS Waivers
Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) and Agriculture Committee Ranking Member Collin Peterson (D-MN) sent a letter to President Trump last week expressing concern that Environmental Protection Agency (EPA) Administrator Scott Pruitt is inappropriately issuing waivers to fuel refiners in order to undermine the Renewable Fuel Standard (RFS) program. The RFS program requires refiners to blend a certain percentage of renewable fuels into transportation fuel. While the program includes authority for the EPA Administrator to grant exemptions to small refiners in order to provide compliance flexibility, the waivers are not intended to be used to thwart the primary goal of the RFS program—to increase the use of renewable fuels. “Misuse of the small refiner exemption to reduce renewable fuel volumes undermines the goal of the RFS program, creates uncertainty and economic hardship in the agricultural community, and gives unfair advantage to specific facilities within the refining sector,” Pallone and Peterson wrote to President Trump.
Klobuchar urges disease provisions in Farm Bill
U.S. Senators Amy Klobuchar (D-MN) and John Cornyn (R-TX) recently led a bipartisan letter with 13 other senators to the Senate Agriculture Committee urging Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) to authorize an animal disease and disaster response program and a foot and mouth disease (FMD) vaccine bank in the 2018 Farm Bill. Recent animal disease outbreaks like Highly Pathogenic Avian Influenza (HPAI) impacted hundreds of thousands of farms in the U.S. and resulted in hundreds of millions in damages. The recommended provisions in the letter would help to adequately address risks to animal health, livestock export markets, and industry economic stability. “Foreign pests and diseases have the potential to devastate animal agriculture. It is critical that the next Farm Bill address these risks to animal health,” the senators wrote. “We believe the inclusion in the next Farm Bill of a joint animal disease and disaster response program and a FMD vaccine bank would accomplish this goal.” Joining Klobuchar and Cornyn on the letter were U.S. Senators Heidi Heitkamp (D-ND), Thom Tillis (R-NC), Joe Donnelly (D-IN), John Thune (R-SD), Tina Smith (D-MN) and John Hoeven (R-ND).
Legislative Update – March 16, 2018
Nitrogen Fertilizer Rule/Groundwater Protection Rule
This past week there have been many developments on the Nitrogen Fertilizer Rule that the MN Department of Agriculture (MDA) has been working on for quite some time. Last summer MDA had released what I would call a discussion draft of the rule and held many meetings including with MFU to discuss the proposal. This week the House Agriculture Policy Committee heard H.F. 2727 authored by Rep. Steve Green that would ban the adoption of the rule and H.F. 2887 authored by Rep. Jeff Backer that would require legislative approval of the law. MDA this week released more information on the framework for the rule that will focus its efforts on protecting public drinking water systems also known as Drinking Water Supply Management Areas (DWSMAs) that have high nitrate levels (Parts 1 and 2). A DWSMA is the estimated area within an aquifer that contributes water to a public water supply well over a period of 10 years. Much of NW Minnesota has been exempted. MDA also says the earliest fall restrictions of N application would occur would be fall 2020. To be clear, MDA has not released the final rule for comment and won’t until sometime in May, then there will be a 30-day comment period and public meetings and further consideration. MFU will continue to work with MDA and legislators on this issue as it moves forward and encourages members to contact me with further questions and concerns. More information can be found here: httpss://www.mda.state.mn.us/nfr
Governor Dayton releases budget requests
Today Governor Mark Dayton released his supplemental budget requests. Of interest to MFU are $200, 000 for rural mental health help for farmers, $15 million for CREP, $20 million for the Rural Finance Authority, $30 million for border-to-border broadband and opting for the Minnesota Care Buy-in for health care. This past week, Watonwan Co. Farmers Union President Brian Romsdahl and his wife Therese were guests of Governor Dayton at his State of the State address to the Legislature where he introduced them while talking about the Minnesota Care Buy-in and how it would help farmers. More information here: httpss://mn.gov/governor/issues/budget/
Ditch mowing
This coming week, the House Ag Policy Committee will hear different versions of bills dealing with ditch mowing. There are many ideas floating around after MNDOT recently released its report about the subject of mowing and haying on state highways. MFU is concerned about timing with one week to go before the first session policy deadline and is supportive of extending the current moratorium on enforcing permits for one year as details are continuing to be ironed out. The three big issues are the Aug. 1 date, permitting and enforcement. MFU continues to meet with stakeholders, legislators and the administration on this subject. Members can see more info on MNDOT’s webpage: https://www.dot.state.mn.us/mowing/
Truck washes
This past week, the House Agriculture Committee heard an interesting bill, HF 3216, authored by Rep. Schomacker that clarifies that while under current law, until July 1, 2022, the Minnesota Pollution Control Agency (MPCA) and county boards generally cannot permit the construction of a new open-air swine basin. However, this bill would clarify that the prohibition does not apply to a storage basin for effluent basins used solely to hold wastewater from a truck-washing facility. In 2015, the Legislature defined “private truck wash” for purposes of a similar law as “a truck washing facility owned or leased, operated, and used only by a feedlot operator to wash trucks owned or leased by the feedlot operator and used to transport animals or supplies to and from the feedlot.” The bill was referred to the Committee of Environment and Natural Resources.
Drain Tile bill
This past week the House also heard HF3331 authored by Rep. Jeanne Poppe that proposes that agricultural drain tiles would be exempted from sales tax. This idea has been around for quite awhile and goes to the question of what is allowed and considered to be part of agriculture production. I encourage members to let me know what they think on this issue. The bill was sent to the Tax Committee. Sen. Dan Sparks is the author in the Senate.
COOL bill introduced
Although unlikely to go anywhere this year, MFU was pleased to see introduction of Country of Origin Labeling (COOL) for certain meats this week by Sens. Lourey, Eken and Isaacson and Reps. Bly and Clark Johnson. COOL continues to be a popular issue with MFU members, you can read the bill here: COOL
Ag Drivers license
This past week the House Transportation Committee moved H.F. 1126 authored by Rep. Deb Kiel back to the House floor for consideration by the full body. The bill modifies some of the requirements for a restricted driver’s license (farm permit) that can be issued for farm work by allowing permit unaccompanied driving within 40 miles of the farmhouse, which is increased from 20 miles; and it clarifies that the license is available for work on any type of farm, regardless of how it is legally constituted. Sen. Westrom is the Senate author. MFU supports this legislation.
Ag license plate
I am very pleased to receive many inquiries from MFU members about the status of H.F. 3152 authored by Rep. Rod Hamilton that creates a Minnesota agriculture special license plate. As part of obtaining the plate, a vehicle owner would need to donate $20 annually for Minnesota FFA Foundation and Minnesota 4-H activities. Unfortunately, the bill is being held up due to the MNLARS issue. MFU will keep advocating for the bill and urging for it to move forward. Sen. Gary Dahms is the Senate author.
Goggin, Dahms counseling bills
The Senate Ag Committees have recently heard testimony and passed legislation authored by Sen. Dahms and Sen. Mike Goggin that would appropriate dollars from the general fund to the commissioner of agriculture for transfer to the Board of Trustees of the Minnesota State Colleges and Universities for additional statewide mental health counseling support to farm families and business operators. MFU strongly supports these important bills and has testified in favor of them.
Tax Conformity
This past week MFU testified before the House Tax Committee in favor of H.F. 3569 authored by Rep. Paul Anderson that would address concerns MFU has with section 179 conformity and the new Federal Tax bill. Rep. Anderson’s bill would address how farm equipment trade-ins are handled by conforming MN current section 179 threshold of $25,000 to the federal limit of $1 million dollars. The bill was held over for further consideration. MFU encourages members who have questions on this to contact me.
Emmer, Nolan introduce STRESS Act
The STRESS Act, was this week introduced by U.S. Reps. Tom Emmer (R-Minn.), Tom O’Halleran (R-Ariz.), Rick Nolan (D-Minn.), David Young (R-Iowa), Mark Pocan (D-Wis.), Rodney Davis (R-Ill.), Michelle Lujan Grisham (D-N.M.), John Katko (R-N.Y.), and Chellie Pingree (D-Maine), and would provide vital assistance to family farmers and ranchers who are struggling amidst a five-year, 52 percent decline in net farm income. The bill would reauthorize the Farm and Ranch Stress Assistance Network (FRSAN), a program authorized in the 2008 Farm Bill to provide farmers with stress assistance programs. FRSAN has not been funded since being authorized. National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the bill’s introduction: “Farming and ranching is a highly stressful occupation. As the downturn in the farm economy worsens, many producers are finding themselves in a state of financial crisis. Unfortunately, many family farmers and ranchers lack access to the support they need in times of extreme duress.” MFU appreciates the work of Rep. Emmer in bringing this issue forward.
NFU on 199A
This week members of Congress are proposing to undo a newly instated tax break that is meant to level the playing field between agricultural cooperatives and corporations who received a dramatic tax break under the Tax Cuts and Jobs Act. National Farmers Union (NFU) is urging Congress to instead seek a balance that does not weaken the important tax break for family farmers who sell to cooperatives. NFU members recently passed a special order of business regarding the provision, Section 199A, due to its value in improving the livelihood of farm families and in strengthening rural communities. NFU President Johnson issued the following statement in response to the proposal: “Corporations just received one of the largest tax breaks in their history, the addition of 199A was an attempt to level the playing field for cooperative businesses. “Not only would corporations be better off, but farmers would be disadvantaged by working with their cooperatives. Wage limits contained in this proposal will discriminate against family farms that don’t hire outside workers, especially if they work with small cooperatives who also have a limited wage base. Farmers could alternatively see the 20 percent deduction on taxable income reduced to 11 percent, if they do business with a co-op. Under this new proposed language, farmers could sell to a private company and lock in the 20 percent deduction, or they can sell to a co-op and receive an 11 percent deduction.”
NFU on Organic Rule
The U.S. Department of Agriculture (USDA) recently withdrew the Organic Livestock and Poultry Practices (OLPP) final rule, a set of standards that organic producers would have had to meet to qualify for the voluntary organic label for livestock and poultry. NFU President Roger Johnson issued the following statement in response to USDA’s action: “The voluntary practices that farmers need to meet to qualify for a USDA ‘organic’ label have always been governed by those that created the organic movement and who adhere to the strict standards that are agreed upon by the National Organic Standards Board. This body directed the National Organic Program to issue the OLPP standards to have some consistency in what an organic practice is. USDA’s action to withdraw the OLPP rule is a mistake that will cost the family producers who already adhere to strict standards to meet ‘organic’ standards. It puts them on an uneven playing field with the types of operations who skirt the rules, yet also benefit from the same USDA organic label.”
Smith on RFS
This week after a series of postponed meetings between the White House and U.S. biofuel producers—sparking fears that there may be an attempt to weaken the RFS—Sen. Tina Smith is urging the Administration’s top energy officials to come together with renewable energy leaders and discuss how to preserve and protect the program. “I fought for a spot on the Senate Agriculture Committee because I want to do my part to help Minnesota’s ag economy grow—and because I want to see our rural communities, farmers, clean energy producers, and agribusinesses thrive,” said Sen. Smith. ”The RFS supports thousands of local jobs and helps lead to billions of dollars in economic activity, it cuts our dependence on foreign oil, and it helps reduce the environmental impact of energy. I strongly urge the White House to get on board with championing the RFS—our family farmers and clean energy producers depend on this critical program.”
Bill Introductions of Note
Bernardy, Hornstein, Masin and Bly introduced:
H. F. 3462, A bill for an act relating to transportation; regulating highway right-of-way moving practices; providing for pollinator habitat management; amending Minnesota Statutes 2016, sections 160.23; 160.232; 160.2715.
The bill was read for the first time and referred to the Committee on Agriculture Policy.
Swedzinski introduced:
H. F. 3472, A bill for an act relating to natural resources; modifying requirements for saltwater aquatic farms; amending Minnesota Statutes 2016, sections 17.494; 17.4982, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 17.
The bill was read for the first time and referred to the Committee on Agriculture Policy.
Johnson, C.; Hamilton; Poppe; Schomacker; Gunther; Bennett and Considine introduced:
H. F. 3484, A bill for an act relating to rural development; appropriating money for a rural economic development study.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
Anderson, P.; Backer and Urdahl introduced:
H. F. 3487, A bill for an act relating to agriculture; requiring reimbursement of certain persons who control or eradicate noxious weeds on a trunk highway right-of-way; amending Minnesota Statutes 2016, section 18.78, subdivision 1.
The bill was read for the first time and referred to the Committee on Agriculture Policy.
Poppe; Johnson, C., and Sauke introduced:
H. F. 3515, A bill for an act relating to agriculture; appropriating money for a grant to Farmers’ Legal Action Group.
The bill was read for the first time and referred to the Committee on Agriculture Finance.
Anderson, P. introduced:
H. F. 3523, A bill for an act relating to biodiesel; allowing the minimum biodiesel content level for diesel fuel to be modified during certain times of the year; extending Number 1 diesel exemption; amending Minnesota Statutes 2016, section 239.77, subdivisions 2, 3a.
The bill was read for the first time and referred to the Committee on Agriculture Policy.
Anderson, P. introduced:
H. F. 3526, A bill for an act relating to property taxes; amending the agricultural homestead classification requirements for business entities; amending Minnesota Statutes 2016, section 273.124, subdivision 8.
The bill was read for the first time and referred to the Committee on Taxes.
Miller and Hamilton introduced:
H. F. 3548, A bill for an act relating to transportation; modifying certain hours of service requirements for agricultural transportation; amending Minnesota Statutes 2016, sections 221.031, subdivision 2d; 221.0314, subdivision 9.
The bill was read for the first time and referred to the Committee on Transportation and Regional Governance Policy.
Senator Westrom introduced:
S.F. No. 3117: A bill for an act relating to property taxes; increasing the number of acres exempt under the agricultural historical society property exemption; amending Minnesota Statutes 2016, section 272.02, subdivision 49.
Referred to the Committee on Taxes.
Senators Frentz, Draheim, Sparks, and Eken introduced:
S.F. No. 3210: A bill for an act relating to agriculture; appropriating money for a grant to Farmers’ Legal Action Group.
Referred to the Committee on Agriculture, Rural Development, and Housing Finance.
That is all for now, questions, comments and complaints to me at thom@mfu.org or (651) 288-4067.
Thom Petersen, Director of Government Relations, Minnesota Farmers Union
Legislative Update – March 2, 2018
Lobby Day Drive-In.
MFU held a very successful Lobby Day Drive-In at the Capitol in St. Paul on Feb. 27, with members coming in from all parts of the state and meeting with nearly 50 different legislators. MFU members also met with Gov. Mark Dayton, Attorney General Lori Swanson and Secretary of State Steve Simon. Members hit on MFU’s top priorities of addressing the struggling farm economy, health care, broadband, ditch mowing, taxes, biodiesel and many more issues. You can see pictures from lobby day on our Flickr page. MFU thanks all the members for taking time out of their busy schedules to come to the Capitol to tell their story.
MFU testifies on the RFA.
During Lobby Day, MFU President Gary Wertish and Wabasha County Farmers Union President Ed Jostock testified in favor of bills authored by Rep. Tim Miller and Rep. Mike Sundin before the House Agriculture Finance Committee to replenish the Rural Finance Authority (RFA) which make loans to farmers in many different categories including farm restructure, livestock equipment and beginning farmers. The bills were held over and companions will be heard in the Senate this week. You can see more information on the RFA here: https://www.mda.state.mn.us/agfinance
MFU testifies on Priorities.
On Monday of this week, MFU President Wertish also testified in front of the Senate Agriculture Committee sharing MFU’s priorities for the Legislative session and general thoughts on the current state of the agriculture economy. President Wertish raised concerns about dairy farmers right now facing a tough situation with extended low prices with the committee and the need for a strong Federal Farm Bill. Wertish also touched on the importance of health care, RFA funding, tax conformity and other key issues.
Ditch Mowing Report Released.
Yesterday the Minnesota Department of Transportation (MNDOT) released their 57-page report to the legislature, “Mowing and Haying in the State Trunk Highway Right of Way”. The report is the result of a stakeholder group that MFU participated in. While MFU is still assessing the results of the report, some of the key findings and suggestions include a simpler easier long-term permit system that may not require a deposit, an increase of the first “safety cut” from 8 feet to a “standard swath” before Aug. 1 and removal of the current 12-inch height restriction. MFU is still processing the report and will visit with MNDOT and legislators in the coming week and welcomes feedback, you can see the report and narrative here: https://www.dot.state.mn.us/govrel/reports.html
MFU participates in MN CARE Buy-In press conference.
On March 1, MFU President Wertish joined Gov. Dayton, Sen. Tony Lourey and Rep. Clark Johnson at a press conference at the governor’s office to once again call for consideration of a public option for health care namely allowing residents of Minnesota to buy into the current Minnesota Care program. MFU President Wertish stressed the need to put all options on the table for health care as farmers continue to see high costs and this plan would provide affordable and accessible quality care for farmers. News story here: MNCARE
MFU testifies on Tax Conformity.
On Feb. 27 MFU testified before the House Tax Committee with concerns on tax conformity issues with the recent passage of the Federal Tax bill. One of MFU’s concerns is Minnesota’s current low amount for conformity with Section 179 (accelerated depreciation) of $25,000 and the Federal government now being at $1 million. MFU is also concerned that under the new tax bill it looks as if the new law will require farmers to report the taxable gain on the sale of the machinery based on the “trade-in” value. With the Federal law, a farmer can offset the gain by taking 100 percent bonus depreciation or Section 179 on the new piece of equipment. On the state income tax side, offsetting the whole gain may be more difficult to accomplish in Minnesota due to limits on section 179 to $25,000 and limits the amount of bonus depreciation to 20 percent. MFU will continue to work on this issue and urges farmers who have questions about the new tax bill to contact me.
State has $329 million-dollar surplus.
From Session Daily: The state has a $329 million projected budget surplus for the remainder of this biennium, Minnesota Management and Budget announced Wednesday. In its 2018 February Budget and Economic Forecast, MMB said things have improved since November, when the agency announced Minnesota was projected to be $188 million in the red for the 2018-19 biennium, which ends June 30, 2019. The massive swing — $517 million — comes after the agency predicted $353 million more revenue than previously projected. Legislators will use the forecast numbers to help shape policies for the remainder of the 2018 session, which ends May 21. MMB, the state’s official budget office, cited “increased U.S. economic growth arising, in part, from short-term stimulus from federal tax law changes” and a $167 million decrease from November’s projected spending. Because of the federal Tax Cuts and Jobs Act of 2017, economists expect more money in consumers’ pockets, which, coupled with low unemployment rates, will encourage spending rather than personal savings.
Fertilizer Council bill heard.
This week the House Agriculture Policy Committee heard H.F. 2938 authored by Rep. Jeff Backer that would extend by ten years the Minnesota Agricultural Fertilizer Research and Education Council (AFREC) and the fertilizer inspection fee surcharge of 40 cents/ton that funds the fertilizer research, education, and technology transfer grants awarded by AFREC each year. Without this extension, the surcharge would expire in 2019 and AFREC would expire in 2020. The bill passed and was sent to the Government Operations Committee, Sen. Bill Weber is the Senate author. MFU is represented by Chippewa County farmer Dan Benson on AFREC.
Broadband.
MFU recently joined the Minnesota Rural Broadband coalition as access has been a top priority that MFU continues to hear about from members. You can see more info about the coalition here: https://mnbroadbandcoalition.com/ and legislation authored by Sen. Mark Koran and Rep. Sandy Layman that coalition is supporting here: httpss://www.revisor.mn.gov/bills/bill.php?b=senate&f=sf2787&ssn=0&y=2018 that would appropriate $51 million dollars to the commissioner of employment and economic development for deposit in the border-to-border broadband fund account.
Ag license plate bill.
This coming week the House Agriculture Policy Committee will hear H.F. 3152 that would create a special agriculture license plate in Minnesota with the proceeds going to support 4-H and FFA programs. Rep. Rod Hamilton is the House author and Sen. Gary Dahms is the Senate author. MFU supports this legislation.
Nitrogen bill to be heard.
This week, the Senate Agriculture Policy Committee will hear S.F. 2449 authored by Sen. Paul Utke that would prohibit the adoption of a proposed nitrogen fertilizer rule. Currently MDA is working on a Nitrogen Fertilizer rule that has drawn a lot of attention and MFU’s understanding is that the new draft of the rule will be out sometime in April, you can read more about rule here: httpss://www.mda.state.mn.us/nfr
Soil Loss.
Recently MFU participated in a stakeholder meeting to discuss Minnesota’s soil erosion law which dates to 1984. According the Board of Water and Soil Resources (BWSR) the law was entirely permissive in that it only encouraged local governments to adopt soil erosion ordinances and could not be implemented without a local government ordinance. The soil erosion law was changed in 2015 when many revisions were made by the Legislature and approved by the Governor to broaden its applicability. The result of the combined changes now sets forth statewide regulation of excessive soil loss regardless of whether a local government has a soil loss ordinance. MFU will have more information as this stakeholder process goes forward and encourages questions and comments from members.
Klobuchar introduces data bill in the U.S. Senate.
U.S. Senators Amy Klobuchar (D-MN) and John Thune (R-SD), senior members of the Senate Agriculture, Nutrition and Forestry Committee, today introduced bipartisan legislation to improve agriculture data research of conservation practices to help farmers reduce risk and increase profitability. The United States Department of Agriculture (USDA) currently manages and stores valuable producer data, but the data can be better utilized to inform producer understanding about which conservation practices reduce risk and improve profitability. The Agriculture Data Act would direct the Secretary of Agriculture to collect, collate, integrate, and link data relating to the impacts of covered conservation practices on enhancing crop yields, soil health, and otherwise reducing risk and improving farm and ranch profitability. It would also give the Secretary of Agriculture the authority to establish a secure, confidential cloud-based conservation and farm productivity data warehouse to store operational, transactional, and administrative program databases and records that support business, statistical, and other analysis.
Governor Dayton on the RES.
A new report released today by Bloomberg New Energy Finance shows that 25 percent of Minnesota’s energy now comes from renewable sources, meeting Minnesota’s Renewable Energy Standard seven years ahead of schedule. Last year, Gov. Dayton’s Administration and a group of bipartisan lawmakers called for an increase in Minnesota’s Renewable Energy Standard from the current standard of 25 percent by 2025, to 50 percent by 2030. The following is a statement from Governor Dayton on today’s report. “I urge the Legislature to adopt the ‘50 by 30’ Renewable Energy Standard, which legislators from both parties have championed. We must do even more to ensure our children and grandchildren inherit a better future, and a stronger clean energy economy.” In addition to the study released today, other recent studies have shown that Minnesota’s clean energy industry employs over 57,000 workers, and solar energy jobs alone grew by 48 percent between 2016 and 2017.
Klobuchar, Smith support RFS.
U.S. Senator Amy Klobuchar (D-MN) recently led a group of senators in urging the Administration to oppose any changes that would undermine the objectives of the Renewable Fuel Standard (RFS). In a letter to Environmental Protection Agency (EPA) Administrator Scott Pruitt, Klobuchar was joined by Sen. Tina Smith and other Senators asking that he reject changes to the RFS that hinder the growth of rural economies. “The RFS is an effective driver of economic development. It has strengthened agriculture markets and created hundreds of thousands of jobs in the new energy economy and driven economic growth in rural communities across the country,” the senators wrote.
Urban Ag.
One of the more interesting bills that has been championed by Rep. Karen Clark the last few years is now happening as the MN Dept. of Agriculture has announced $250,000 in grant funding for urban youth agricultural education or urban agriculture community development. The AGRI Urban Agriculture grant program is available to for-profit businesses, non-profit organizations, schools, Native American tribal communities, and local government entities. Applicants may request up to $50,000 per project, and up to 100 percent of the total project cost may be covered by the grant. Half of the award may be requested as an advance. Applications are due April 19, 2018 by 4:00 p.m. CDT. The Urban Agriculture Grant is part of the Agriculture Growth, Research and Innovation (AGRI) Program. For more information about the AGRI Urban Agriculture Grant visit www.mda.state.mn.us/grants/grants/urbanaggrant or contact Erin Connell at erin.connell@state.mn.us.
Bill Introductions of Note
Urdahl, Drazkowski, Green, Gruenhagen, Gunther, Fabian, Torkelson and Hertaus introduced–
- F. 3043, A bill for an act relating to natural resources; requiring county board notification before certain land acquisitions; amending Minnesota Statutes 2016, section 97A.056, by adding a subdivision.
Newberger introduced–
- F. 3121, A bill for an act relating to food safety; expanding cottage foods license exemption to include limited liability companies; eliminating gross sales limit; requiring limited liability companies to maintain certain liability insurance; amending Minnesota Statutes 2016, section 28A.152, as amended.
Senator Sparks introduced–
S.F. No. 2829: A bill for an act relating to taxation; sales and use; exempting agricultural drain tiles from sales tax; amending Minnesota Statutes 2016, section 297A.69, by adding a subdivision.
Senators Weber, Dahms, and Rosen introduced–
S.F. No. 2839: A bill for an act relating to agriculture; clarifying that a certain ban on open-air swine basins does not apply to truck washes; amending Minnesota Statutes 2017 Supplement, section 116.0714.
Senator Sparks introduced–
S.F. No. 2850: A bill for an act relating to agriculture; appropriating money for mental health counseling and advocate services.
Senators Sparks and Weber introduced–
S.F. No. 2854: A bill for an act relating to environment; appropriating money to develop curriculum for feedlot training.
Senator Westrom introduced–
S.F. No. 2893: A bill for an act relating to agriculture; reducing the minimum production level for advanced biofuel production incentive payments; amending Minnesota Statutes 2016, section 41A.16, subdivision 1.
That is all for now, questions, comments and complaints to me at thom@mfu.org or (651) 288-4067.
Thom Petersen, Director of Government Relations, Minnesota Farmers Union