Legislative Updates

Early last week, the U.S. Senate released their proposal for the next round of COVID relief dubbed the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act. Out of the approximately $1 trillion provided by the proposal, $23.5 billion is earmarked for agriculture. The vast majority of this ($20.457 billion) is allocated to the Secretary of Agriculture to “prevent, prepare for and respond to coronavirus by providing support for agricultural producers, growers and processors impacted by coronavirus.” Other relevant provisions in the HEALS Act would authorize another round of $1,200 stimulus checks, reduce federal unemployment benefits and extend the Paycheck Protection Program (PPP).

n response to the Senate package, NFU president Rob Larew expressed appreciation for the additional support provided by the HEALS Act, but urged “congressional oversight of and greater transparency about how and to whom assistance is offered.” He also requested that they Senate include a boost to SNAP benefits, on which more families are relying amid the global pandemic.

Now over two months ago, the U.S. House passed their relief proposal, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The $3 trillion aid package, provides relief across the economy and includes significant support for agriculture, though falls short of the systemic reforms needed to ensure that our food system is fair for family farmers and resilient. The House’s bill provides approximately $33 billion worth of support for agriculture. Among these provisions, 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 the House and Senate are able to reach a compromise position, this package would follow the last major stimulus package – the approximately $1.8 trillion CARES Act – which was passed in March.

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.

MFU, NFU, coalition challenge EPA on fuel efficiency rule

A coalition of ethanol, agriculture and public interest groups today challenged the Trump administration’s recent fuel efficiency rule on the grounds that it downplays the harm from reduced emission standards, ignores the efficiency and health benefits of higher ethanol blends and fails to realize the promise of increased octane in gasoline.

The rule in question, known as Safer Affordable Fuel Efficiency Vehicle Rule (SAFER), was finalized on April 30, 2020, reversing an Obama-era rule that called for significant improvements in vehicle efficiency. Issued by the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), it established a 1.5% increase in efficiency each year for light-duty vehicles, rather than the 5% increase in the previous rule. In the notice of proposed rulemaking, EPA requested information on octane levels and how they could be increased in accordance with the Clean Air Act, but ultimately failed to address these concerns in the final rule.

In response to EPA’s failure to credibly consider and advance mid-level ethanol fuel blends as an alternative to conventional fuels, the groups filed a petition for review in the Superior Court of the District of Columbia.

The legal challenge, led by National Farmers Union (NFU), also includes the Governors Biofuels Coalition, the Clean Fuels Development Coalition, the Environment and Energy Study Institute, several NFU state and regional divisions including Minnesota Farmers Union (MFU), and the Urban Air Initiative.

Read the full release here.

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.

June 30 last day to complete enrollment for 2020 ARC & PLC programs, as well as Paycheck Protection Program

Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2020 must do so by June 30. Although program elections for the 2020 crop year remain the same as elections made for 2019, all producers need to contact their local USDA Farm Service Agency (FSA) office to sign a 2020 enrollment contract.

To date, more than 1.4 million ARC and PLC contracts have been signed for the 2020 crop year. This represents 89% of expected enrollment. FSA will send reminder postcards to producers who, according to agency records, have not yet submitted signed contracts for ARC or PLC for the 2020 crop year.

Producers who do not complete enrollment by close of business local time on Tuesday, June 30 will not be enrolled in ARC or PLC for the 2020 crop year and will be ineligible to receive a payment should one trigger for an eligible crop.

ARC and PLC contracts can be mailed or emailed to producers for signature depending on producer preference. Signed contracts can be mailed or emailed back to FSA or, arrangements can be made in advance with FSA to drop off signed contracts at the FSA county office – call ahead for local dropoff and other options available for submitting signed contracts electronically.

Producers are eligible to enroll on farms with base acres for the following commodities: barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium- and short-grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

For more information on ARC and PLC including web-based decision tools, visit farmers.gov/arc-plc.

Also, the application deadline for the Paycheck Protection Program is June 30. If you have not yet applied for a PPP loan, you still can by contacting a participating lender for more information. The time frame for using the funds and still qualifying for forgiveness has been extended up to 24 weeks. Act now to access this important COVID-19 financial relief program.

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.”

This is a busy week for state legislators as they have just one week to agree on legislative proposals and send them to Governor Walz before the legislatures constitutional deadline on Monday, May 18. That said, and as is often the case even outside of a public health emergency, it’s assumed that they will need a special session to complete their regular work and continue responding to the pandemic.

A potential bright spot of bipartisan agreement are the supplemental ag finance and policy bills (HF4490/SF4395; HF4285) making their way through both bodies. The House Ag Chair, Jeanne Poppe (DFL-Austin), and Senate Ag Policy and Finance Chairs, Torrey Westrom (R-Elbow Lake) and Bill Weber (R-Luverne), worked hard to negotiate policy changes and limited spending ahead of a floor vote in either body with the hope of expediting final passage.

On Friday, the House bills made their final stop in the House Ways and Means Committee where they earned unanimous support. They are slated for a floor vote by the full House as soon as tomorrow. As Chair Poppe said when presenting the legislation for the committee, these bills don’t address many of the most pressing issues facing farm families right now—like depopulation, low prices, and lost markets due to the pandemic.

That said, they do include a number of provisions that MFU has been proud to support throughout the session that would provide needed help to farmers and others. These include new investments in:

• Rural mental health, with added capacity to do outreach to farm and rural youth.
• The Farm Advocate program to help add capacity, particularly in the southwest region of the state, and help keep farmers on the farm.
• Farm safety, which will restart a grant program that can help farmers invest in equipment that can make their grain bins safer.
• Local meat processing, which will help processors add capacity and meet the needs of producers and consumers.
• 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.

In his letter in support of these investments, MFU President Gary Wertish shared that “this bill doesn’t include all the answers—and we won’t know all that’s needed for some time. That said, it does stand up resources we know farmers need now, representing a meaningful step in the right direction.”

All that said, the fate of much of this work, depends on larger budget negotiations involving a potential bonding bill, the approval of state worker contracts, further spending on COVID-19 relief and the Governor’s emergency authority. And last Tuesday, we learned that the state faces a nearly $2.43 billion deficit, a nearly $4 billion dive from the $1.5 billion surplus projected just months ago. As Minnesota, unlike the Federal Government, is required to pass a balanced budget, this updated number makes new investments all the more difficult to secure.

Tax provisions are also subject to these broader negotiations. Of note, last Friday, House Tax Chair Paul Marquart (DFL-Dilworth) previewed a tax package (HF3389) that includes a limited fix to Section 179 for equipment expensing, a priority for MFU and other ag groups. The bill’s Senate companion (SF3843) is carried by Chair Roger Chamberlain (R-Lino Lakes). The fix would allow full expensing retroactively for 2018 and 2019, to make sure that farmers who were retroactively hit with unexpected tax bills are held harmless. And going forward, the proposal would essentially let farmers and others stretch their tax liability out over the years that their able to claim a deduction.

On the federal level, applications are still being accepted for the Small Business Administration’s programs aimed at providing relief to small businesses, including farms. The Paycheck Protection Program (PPP) provides loans to small businesses, including sole proprietors, and an incentive to keep workers on the payroll. In many cases these loans are forgivable. The Economic Injury Disaster Loan (EIDL) program provides low interest loans to small businesses, and in some cases a forgivable ‘loan advance’ of up to $10,000 ($1,000 per employee).

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.

On Friday evening, the USDA announced how it plans to allocate much of the funding made available for direct relief to producers as part of Congress’s response to the pandemic. The $19 billion emergency aid package, outlined by the Department and dubbed the Coronavirus Food Assistance Program (CFAP), includes $16 billion in direct support for certain producers based on losses where prices have dropped or supply chains have been disrupted.

According to the United States Senate Agriculture Committee Chair, the funding will be divided up as follows according to producer type:

• $9.6 billion for the livestock industry
• $5.1 billion for cattle
• $2.9 billion for dairy
• $1.6 billion for hogs
• $3.9 billion for row crop producers
• $2.1 billion for specialty crops producers
• $500 million for others crops

Producers who’ve experienced over a 5% decrease in price will be eligible for up to $125,000 per commodity and $250,000 per recipient, distributed based on:

• 85% compensation for price losses between January 1 and April 15, 2020
• 30% compensation for price losses between April 15 through the next two quarters

In addition to the $16 billion in direct aid to producers, the USDA announced $3 billion for purchasing and distributing fresh produce, dairy and meat products to food banks and other organizations that provide food to families who need it.

The agency still needs to undergo an expedited rulemaking process defining further details, like eligibility and payment rates. Following rulemaking, officials hope to have sign-up open as soon as early May in order to get payments to producers by the end of May or early June.

The funds making up the $19 billion included in the USDA announcement were made available by Congress as part of the CARES Act, the $2.2 trillion COVID-19 response package signed into law in late March. This CFAP program will use the $9.5 billion allocated for direct support for certain producers and markets, as well as $6.5 billion from the Commodity Credit Corporation (CCC).

Following the passage of the CARES Act, National Farmers Union (NFU) sent a letter to U.S. Secretary of Agriculture Sonny Perdue, highlighting the immense financial pressure producers are under due to the pandemic and urging the USDA to act quickly to release the funds. Minnesota Senators Amy Klobuchar and Tina Smith also sent a letter asking the department to prioritize Minnesota products.

Also on the federal level, the President and Congressional leaders previewed a new COVID-19 aid package that includes recharging the Paycheck Protection Program (PPP), with $300 billion to help small business weather the virus. While negotiations are not finished, leaders Monday morning said there could be a vote as soon as Wednesday. While many farmers and small businesses weren’t able to get their applications submitted for the first round of funding, it’s important that family farmers remember three things about this program:

• Farms are eligible for funding from the PPP, unlike some other Small Business Administration (SBA) programs. See guidance direct from the USDA here.
• Sole proprietors are eligible. Despite the misleading name, you don’t need to be an employer paying a “paycheck” in order to receive a loan (see USDA’s guidance re: sole proprietors).
• Much of the loan is forgivable (see Treasury fact sheet here).

While this money isn’t yet available, it’s still a good idea to talk to your accountant and lender about applying. The previous $349 billion was committed quickly and the next round of funding will likely be the same. This is a brand new program, stood up in record time, so we’re hearing about plenty of issues, even outside of a lack of funding. If you have an experience with the PPP that you’d be willing to share, please reach out to Stu at stu@mfu.org or (320) 232-3047.

On the state level, Governor Walz, Agriculture Commissioner Thom Petersen and other members of the cabinet briefed the public on the COVID-19 outbreak in Worthington which led to JBS’s decision to close their pork packing facility indefinitely. The Governor and Commissioners made clear that they understand the importance of this plant to the ag supply chain, the regional economy and food security. For this reason, they expressed their strong intention to help the plant develop the protocols it needs to be able to reopen.

The Minnesota Department of Agriculture (MDA) is also closely monitoring the situation at the state’s other large packing plants, as well as working to stand up new processing capacity at the state’s smaller, state-inspected ‘equal to’ meat processing plants (a list of which can be found here). In addition to reaching out to reaching out to us at MFU, you can contact MDA directly with any questions at mdaresponse@state.mn.us.

The Commissioner has also dedicated two staff members at the department to helping farmers who’ve lost their processing plant find new processing opportunities: Jim Ostlie (320-842-6910; jim.ostlie@state.mn.us) and Courtney VanderMey (651-201-6135; Courtney.vandermey@state.mn.us).

Finally, the Governor also joined the Governors from Iowa, Nebraska and South Dakota in sending a letter to USDA Secretary Sonny Perdue, expressing concern about the nation’s biofuels sector, highlighting how the downturn in demand for ethanol hurts already ailing rural economies.

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.

Despite many working from home, this has been a busy week for state and federal leaders as they work to aid in the public health response to COVID-19 and help ease the economic fallout. As always, MFU is working hard to make sure that policymakers and others take into account the needs and perspectives of family farmers and rural communities.

On Sunday, April 5, Governor Walz delivered a historic and resolute “State of the State” address from his residence where he was self-quarantined after coming into contact with someone who’d tested positive for the coronavirus. In the address, which he delivered directly to camera, the Governor called for unity and highlighted the resilience, selflessness and ingenuity of Minnesotans who are facing the pandemic and its economic fallout head-on.

He used the metaphor of a winter, and assured Minnesotans that though there are “long hours of darkness ahead,” social distancing measures and the real sacrifices people are making to protect their neighbors are helping to slowing the spread of the virus. “Staying home is the only vaccine we have right now,” he said. You can watch the Governor’s full 12-minute address here.

As alluded to in comments from lawmakers following the Governor’s address, the State Legislature is set to reconvene Tuesday in order to pass legislation giving first responders and frontline health care workers who are infected with coronavirus presumptive eligibility for worker’s compensation if they were exposed to the virus at work. This would prevent workers, which include nurses, home health care workers, police, firefighters, paramedics and others, from having to prove that they contracted the virus while on the job.

After Tuesday’s session, which will likely be brief and limited to consideration of the worker’s comp legislation, the legislature is expected to meet next the following Tuesday, April 14, as was agreed to by legislative leaders when they recessed in mid-March. Anticipating further legislative work, MFU President Gary Wertish sent a letter requesting that the Governor, the Attorney General and state legislative leaders take action to:

• Extend the deadline for farmer-lender mediations,
• Place a moratorium on farm foreclosures,
• And improve access to affordable credit.

“This crisis comes on the heels of the challenges farmers were already grappling with, including a costly trade war, unpredictable weather events, and record-low farm incomes propped up only in part by federal trade mitigation, the future of which is uncertain,” said President Wertish in his letter to state lawmakers. “These real challenges, coupled with the critical nature of our food system and agriculture economy, make it imperative that you take action to give farmers urgent and needed financial relief.” You can read his full letter here.

For more about the state’s response to coronavirus, visit https://mn.gov/covid19/.

President Wertish also sent a letter to all 10 members of Minnesota’s congressional delegation requesting that they:

• Place a moratorium on farm foreclosures,
• Improve access to affordable credit,
• Strengthen the farm safety-net,
• And defend competition in the ag economy.

In response to similar concerns from producers, Senators Klobuchar (D-MN), Smith (D-MN) and 40 of their Senate colleagues sent a letter to USDA Secretary Sonny Perdue, urging the Administration to do everything they can to make sure farmers have adequate and equitable access to credit through the period of economic uncertainty caused by the pandemic.

Many farmers eligible for Paycheck Protection Program

Related to the issue of credit, much focus has been rightfully dedicated to the recent passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act and what that means for farmers’ access to financial relief targeted at small businesses of all types. This legislation, which was signed into law at the end of last month, allocates nearly $350 billion to the Small Business Administration (SBA) to help small businesses stay in business and retain employees through the pandemic.

Many farms and ag-related businesses, including sole proprietorships, will qualify for this program known as the Paycheck Protection Program (PPP). These loans made available through SBA-approved lending institutions can be used to cover up to 8 weeks of payroll expenses (including benefits), not to exceed $100,000 per employee, along with mortgage interest, rent and lease agreements, or utilities, all of which need to have been in place prior to February 15, 2020. The loans are 100% SBA guaranteed and forgivable so long as the money goes towards payroll and certain conditions are met.

Of course, the program only has a set budget. That’s why it’s strongly recommended that farmers who are interested in taking advantage of this program start a dialogue with their lender as soon as possible. If their lending institution doesn’t currently have a relationship with SBA, they will need to establish that in order to take advantage of the program.

What does the Stay at Home order mean for farmers?

As you are likely aware, Gov. Tim Walz issued a “Stay at Home” order last week that began on Friday night and is scheduled to run through April 10. The order is voluntary, and a number of services are exempt from the order as they are considered “critical services.” Agriculture and food are among those critical services.

You do NOT need to have a letter or any sort of documentation to be outside or on the road. You are fine to continue your work as needed. If you have other questions, you can also check out this FAQ from the Governor: https://mn.gov/governor/covid-19/faq.jsp

The Minnesota Department of Employment and Economic Development has more resources to answer your questions about working during the Stay at Home order: https://mn.gov/deed/newscenter/covid/business-exemptions/. You can also reach out to the Minnesota Department of Agriculture with questions at mdaresponse@state.mn.gov.

State, federal funding approved

As with all areas of life amid this global pandemic, this was a packed week for legislative and administrative action. The state legislature convened to pass a third COVID-19 response package aimed at helping families, small businesses, and farmers through the crisis; the federal government passed a massive economic relief package; and state agencies continued their work to maintain operations and provide more certainty to farmers and others. From home, MFU continued to advocate for member priorities and make sure that policymakers understand the perspectives of family farmers and rural communities.

Last Thursday, March 26, after a sprint of an unconventional floor session, the Minnesota legislature passed a sweeping COVID-19 response package (HF4531; SF4451), which allocated an additional $330 million in aid and gave state agencies more flexibility to continue operations in the face of the pandemic. The bill was drafted by legislative leaders via conference calls ahead of the floor votes, which earned broad bipartisan support—the bill was passed 99-4 in the House followed by unanimous support in the Senate.

In order to ensure that it would be passed quickly, the response package included only priorities that were agreed on by a majority of members on both sides of the aisle. In light of this, leaders on both sides made clear that this is neither the end of their response to the pandemic nor the end of their regular legislative work. That said, it is an important step forward for families across the state who are facing a lot of uncertainty. In an effort to provide immediate and meaningful relief to Minnesota families, the bill includes:

• $200 million for a COVID-19 fund to help maintain agency operations and respond to the pandemic
• $30 million in peacetime emergency child care grants
• $9 million in support for food shelves and food banks
• $40 million in emergency loans to small businesses
• Resources to expand services and homeless shelters

Governor Walz signed the bill into law on Saturday, March 28, bringing the state’s total response to the pandemic up to $550 million dollars.

Importantly, this response package included a change to the Rural Finance Authority’s Disaster Recovery Loan Program that would allow the RFA board to make these loans available to farmers who’ve lost their markets as a result of COVID-19. MFU advocated hard for this provision in order to provide more low-interest financing options to producers who are facing economic hardship as a result of this pandemic.

MFU President Gary Wertish, Executive Committee Chair Carol Anderson and member Eric Sannerud all serve on the RFA Board, which will work with MDA to make the disaster loan program available to producers. In 2019, these disaster loans were made available to farmers who’d suffered barn collapses or other damage due to the record winter snowfall. The RFA Board is scheduled to meet via phone on April 8.

Gov. Walz has issued a number of executive orders during the coronavirus crisis, including the Stay at Home order. One of them, Executive Order 20-24, provides hours of service and weight restriction relief for commercial vehicle drivers hauling livestock. The Order will help ensure producers and retailers maintain supply of essential products.

On the federal level, lawmakers passed a landmark $2.2 trillion stimulus package that included some meaningful relief for agriculture. The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law by the President on Friday, March 27 after being approved unanimously by both the U.S. House and Senate. First, in broad terms, the bill includes:

• The widely reported direct $1,200 payments to adults with incomes up to $75,000, plus another $500 per child. You can calculate your estimated payment here.
• $260 billion for expanded Unemployment Insurance
• $377 billion in loan forgiveness and grants to small businesses
• $150 billion to boost hospital infrastructure and public health response (including
• $185 million for rural critical access hospitals, tribal health centers, and telehealth programs)
• $100 million for rural broadband through the ReConnect program

For agriculture, the bill includes nearly $50 billion for USDA programs (which is approximately half of what is allocated annually to the agency through the 2018 Farm Bill). This package includes:

• $14 billion for the Commodity Credit Corporation, which is used to stabilize, support and protect farm income and prices through initiatives like the Market Facilitation Program (MFP) (though this doesn’t necessarily guarantee another round of MFP payments)
• $9.5 billion to help specialty crop growers, farmers who support local food systems, dairy farmers and livestock producers
• A temporary three-month extension on repayment of commodity marketing assistance loans, from nine months to a year

You can find more of NFU’s analysis here, NFU President Rob Larew’s statement here and a helpful breakdown from ag finance analyst Kent Thiesse here.

For all our work, this is an unprecedented and increasingly uncertain time. That said, at MFU, we’re continuing to work hard on your behalf, voicing concerns from members and working to ensure that policymakers are keeping the needs and perspectives of family farmers and rural communities in mind as they make difficult decisions in response to this pandemic. And all while taking the recommended precautions, including working from home and social distancing.

The Walz administration has taken swift administrative action in response to this crisis. On Monday, the Governor signed executive orders (20-14, 20-15, 20-16 and 20-17) that would strengthen the state’s response to the rapidly developing pandemic, suspending evictions, establishing Peacetime Emergency Loans for small businesses, directing non-hospital entities to conduct an inventory of personal protective equipment, and clarifies that his order that all elective surgeries and procedures be postponed also applies to veterinary surgeries.

In addition, the administration the Governor and Lt. Governor announced an update to their supplemental budget recommendations, calling for an additional $356 million toward the state’s COVID-19 pandemic. And, they’ve opened up a special enrollment period on MNsure from today through April 21, so those without health insurance can get it. For more information on the Walz administration’s response to COVID-19, you can sign up for email updates here.

Also on Monday morning, a number of stories broke that brought the pandemic into sharp focus for the administration. First, Lt. Governor Flanagan’s brother, Ron, passed away after contracting COVID-19 in Tennessee. And second, the Governor announced that he will be self-quarantining after he learned that a member of his security detail with whom he was in contact had tested positive for the virus. The Governor currently isn’t showing any symptoms, but will be working from home until April 6.

Governor Walz is still considering a “shelter-in-place” order, similar to what at least 10 other states have instituted in response to the pandemic. The goal of this would be to limit interpersonal interactions, slowing the spread of the disease to keep the peak number of cases below the upper limits of our health care system.

When other states issued these orders, they’ve accompanied them with exemptions for essential workers, like hospital staff or emergency responders. One priority that we’ve heard loud and clear from members is that the administration should ensure the integrity of our food and agriculture production and distribution system. That’s why MFU President, Gary Wertish, sent a letter to Governor Walz requesting that he exempt essential functions of the food and agriculture sector from any potential “shelter in place” order.

“This will help farmers get crops in the ground during this spring’s limited planting window and help maintain Minnesotans access to a safe and stable food supply through this crisis,” said President Wertish.

Based on member feedback, President Wertish identified the following items as critical to ensuring that farmers can plant this year’s crop and avoiding potentially devastating disruptions to our food production and distribution system:

• Delivered seed, fertilizer and farm equipment parts;
• Agronomy and equipment repair services;
• Food processing, including for meat, poultry and dairy;
• Livestock and poultry feed;
• Livestock and poultry transportation.

The letter highlights that the Governor has recognized the critical nature of Minnesota’s food and agriculture sector, including when he classified “Food Distribution Workers” as essential.

The Minnesota Department of Agriculture (MDA) has also been hard at work ensuring the integrity and safety of our food system. They have continued to perform the required inspections, though with added precautions, and have been proactive about creating and sharing informational resources with people working throughout the food production and distribution system. You can find more information about MDA’s work here.

In addition, MFU worked with MDA and the Minnesota Grocers Association to find new markets for farmers whose existing wholesale markets were lost due to the COVID-19 closures (schools, colleges, restaurants, etc). MDA, with feedback from grocers, quickly developed an Immediate Wholesale Market Need Survey that will help them find alternative wholesale buyers for farmers’ products.

On the national level, NFU has also been active in responding to the crisis and ensuring that federal lawmakers are taking into account the needs of farmers, ranchers, and rural communities as they work to quickly develop a meaningful response. NFU joined a diverse coalition of rural organizations in urging the Trump Administration to ensure that the rural health care system has the capacity to respond to this pandemic. As the letter points out, though much of the media focus has been on urban areas, rural areas are both disproportionately at risk for severe cases and underequipped in terms of medical staff, infrastructure and supplies. A recent data article from the Minnesota Reformer localized this issue.

As always, if you have any questions or concerns about MFU’s legislative work, don’t hesitate to reach out to Stu at (320) 232-3047 or stu@mfu.org. Please do not schedule any county events at this time to minimize the virus’s spread in your communities.

MFU staff are reachable via phone, email and social media. It’s unknown how long this quarantine will last, but we are doing our part to flatten the curve and continue fighting for rural Minnesotans.

Wash your hands and stay at home as much as possible!

On Monday morning, bipartisan legislative leaders announced their plans to dramatically scale back legislative operations in the wake of the COVID-19 pandemic. The attention and resources demanded to protect the public from this virus will affect what we’re able to achieve in terms of MFU’s legislative priorities. That said—and as one legislative leader put it—we’re in “uncharted territory” and the Legislature does plan to continue their work on an as-needed basis until at least April 14.

According to House Speaker Melissa Hortman (DFL-Brooklyn Park), both bodies focus will be narrowed to legislative priorities that fall into the following categories:

1. Items that are necessary to respond to COVID-19;
2. What Speaker Hortman described as “mission critical” items, like the bonding bill;
3. Provisions—likely small ones—that have broad bipartisan support in both the House and the Senate.

Briefly, in response to COVID-19, Governor Walz declared a “Peacetime State of Emergency,” announced statewide school closures and signed into law an emergency funding package totaling $21 million. On Monday, legislative leaders also announced they were negotiating a $100 million package that would provide resources to the hospitals and health care workers who are on the frontlines of the pandemic.

Last Thursday, Governor Walz released his amended budget recommendations which were also pared back order to make room for funding the immediate response to the pandemic and for replenishing Minnesota’s budget reserves in anticipation of an economic slowdown.

These recommendations, however, did include two MFU priorities related to agriculture: investing $250,000 in enhancing farm safety and investing another $50,000 in farm and rural mental health. While this document just expresses the administration’s position, and these items would need to be approved by the legislature, it does give a window into what at least the Governor might consider “mission critical” for this pared-back session.

Finally, in a bright spot, $50 million for MDA’s Rural Finance Authority was approved unanimously by the Senate last Thursday and could be signed into law by the Governor as soon as Monday. Funding this program early in session so that they could continue to provide low-interest loans to family farmers ahead of the growing season was a top priority for MFU this session.

Last week, while much of the team was in Savannah for the NFU convention, legislators continued their work and MFU’s legislative team advocated for our priorities including funding the Rural Finance Authority; making sure our tax system is fair for farmers and rural communities; and helping farmers who are in crisis more easily afford debt refinancing.

First, full funding for the Minnesota Department of Agriculture’s (MDA) Rural Finance Authority (RFA) is a step closer to becoming law after passing off the House floor with broad bipartisan support. House Agriculture Chair Jeanne Poppe (DFL-Austin) led on this bill (HF2959), talking about the importance of funding the program early to mitigate any negative effects of a funding lapse on farmers who are preparing for the upcoming growing season. Representative Rod Hamilton (R-Mountain Lake) also spoke in strong support and Representative Barb Haley (R-Red Wing) shared a story about how this program helped Goodhue County President, Deborah Mills, finance her family’s dairy in 2008.

From here, the bill approving $50 million in user financed bonds needs to be approved by the Senate, where it is carried by Senator Torrey Westrom (R-Elbow Lake; SF3408).

Next, MFU members and staff advocated on two key issues related to taxes. First, we shared our support for full conformity with Section 179 for equipment expensing, which would fix an unintended consequence of last years tax bill that has resulted in some farmers who traded in equipment in the past two years receiving retroactive tax bills. Full conformity would also allow all farm families to expense equipment they purchase in the first year (instead of over five years), helping operations cash flow and reinvest in new equipment. In the House Tax Committee, Chair Paul Marquart (DFL-Dilworth), has voiced strong support for full conformity, while also working to find creative solutions that help eliminate situations where farmers are receiving unexpected tax bills.

In addition, MFU member Tom Smude testified in support of Senator Matt Little’s (DFL-Lakeville) bipartisan bill (SF732) that would extend a tax exemption to grain bins and associated construction materials. Tom—who farms in addition to installing grain bins through his business, Midwest Sales and Construction—testified about the value of on-farm grain storage and how it helps farmers manage risk and hold off selling to wait for a better price. He also shared how significant this exemption would be for installers who’ve been hit hard by the present downturn in the ag economy.

Finally, MFU testified on bipartisan legislation brought forward by Representative Todd Lippert (HF3686) that would help farmers in crisis by creating a fund that would pay the fees associated restructuring loans through the Farm Service Agency (FSA) or RFA. Farmers who have been served mediation notices would be eligible for these funds, which would be distributed by the MDA.

The 4th week of the legislative session is in full swing as legislators continue their work ahead of the first legislative deadline. Last week brought progress on a number of MFU priorities including biofuels, access to financing and rural broadband.

First, bills that would move the state’s biofuel standard from 10% to 15% (SF3605 / HF3699) made their first committee stops in both the House and Senate this past week, passing with strong support from farm groups, biofuels organizations and the Minnesota Department of Agriculture. MFU testified in both committees, stating strong support and explaining why our family farmer members passed a resolution in support of this move during November’s state convention. Not only would this improve local markets for corn, providing much needed certainty to growers, but also because increasing the blend rate is the next step in reducing the carbon-intensity of our transportation system, a key piece of fighting climate change.

If this bill were to pass, Minnesota would maintain its leadership on biofuels as the first state to make this move in accordance with federal rulemaking finalized last year, which certified that vehicles 2001 and newer can use E15 year-round. MFU has also pushed federal officials hard to pave the way for higher biofuel blends, like E30, and for federal investment in biofuels infrastructure.

During the hearings the Minnesota Petroleum Marketers Association and the American Petroleum institute expressed concerns about the legislation. Despite that—and due to strong bipartisan leadership of Senate Ag Finance Chair Torrey Westrom (R-Elbow Lake), House Ag Chair Jeanne Poppe (DFL-Austin) and other bill authors—both bills passed and referred to the commerce committees in both bodies. You can read more about this legislation here.

Next, MFU continued strong advocacy in support of full funding for the Minnesota Department of Agriculture’s Rural Finance Authority, which is has been approved by all the required committees in both houses and is set for floor vote in the House tonight.

Throughout this session, we’ve testified multiple times and submitted formal letters in support of funding the program. All of these serve as opportunities to share the stories of members—including beginning farmers and families who’ve experienced disasters, like barn collapses—who plan to use the program to help then access affordable financing.

Additionally, Carlton County Farmers Union President Mark Thell testified on behalf of MFU in support of $30 million needed to connect more rural homes and business with high-speed internet. This legislation, carried by Sen. Draheim (R-Madison Lake) in the Senate and Rep. Ecklund (DFL-International Falls) in the House (SF3049 and HF3029 respectively), would provide additional funding to the state’s Office of Broadband Development to halt further delays in broadband buildout and make needed progress toward connecting every Minnesotan. The Minnesota Rural Broadband Coalition, of which MFU is an active member, is hosting their day on the hill on March 12—find more information here.