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Governor Walz today signed Chapter 34, House File 2446, the Agriculture and Broadband Development Policy and Finance Bill, into law. The bill funds the Minnesota Department of Agriculture (MDA), Minnesota Board of Animal Health, and the Agricultural Utilization Research Institute. 

“We worked closely with lawmakers throughout the session to craft a bill that invests in Minnesota agriculture and our farmers and ranchers,” said Agriculture Commissioner Thom Petersen. “The bill also provides food to those in need, supports mental health and farm safety resources, and protects our natural resources. It is a major win for our ag community and sets us all up for success now and into the future.”

Highlights of the bill include a new state level Local Food Purchasing Assistance (LFPA) Program ($700,000 per year, Fiscal Years 2026-2029 (FY26-29)). This fills in for a federal LFPA program that was terminated in March. The program has been widely successful in helping emerging farmers build markets and providing healthy and culturally appropriate food to food shelves around the state.

The bill also increases funding to the Farm to School and Early Care Program (an additional $550,000 for a total of $1.594 million in FY26 and $1.544 million in FY27). A federal award for the Local Food for Schools program was also terminated in March. This funding will help offset that loss of federal funds. 

There is a onetime increase of $1.5 million in funding to the Ag Emergency Account in FY26. The account helps the state respond to agricultural disasters and animal diseases like avian influenza. New funding is also available for the Protect Grants, specifically for avian influenza ($400,000 in FY26/27).

The AGRI Meat, Poultry, Egg, and Milk Processing Grant will see an additional $100,000 for a total of $600,000 in FY26/27. This grant helps with the start-up, modernization, or expansion of meat, poultry, egg, and milk processing businesses. Processing bottlenecks in the wake of the pandemic highlighted the need for this support in the food supply chain.

The ag bill increases funding to the Farm Down Payment Assistance Program (an additional $500,000 for a total of $2.5 million in FY26/27). This grant helps qualified farmers purchase their first farm. The amount of each award will also increase from $15,000 to $20,000 per grantee.

Other highlights include:

• Funds milk purchases to Minnesota food shelves ($1 million per year, FY26-29)
• Funds rural mental health and farm safety ($200,000 in FY26/27, $100,000 in FY28/29)
• Increases funding for wolf depredation claims (an additional $175,000 for a total of $275,000 in FY26 and $250,000 in FY27FY26/27) and elk damage claims (an additional $175,000 for a total of $275,000 in FY26 and $250,000 in FY27)
• Increases funding for Farm Business Management (an additional $500,000 for a total of $5 million in FY26/27)
• Funds an evaluation of the Olmsted County Soil Health Program ($75,000 onetime in FY26)
• Increases funding for meat inspection services (an additional $1.5 million in FY26/27)
• Creates a competitive grant program for agricultural related organizations (AGRI Works, $1.5 million in FY26/27)
• Funds the Biofuels Infrastructure Grant ($2.75M in each FY26/27) and also expands eligibility to retail petroleum dispensing sites from 10 to 20
• Creates a biofertilizer efficiency pilot program ($500,000 in FY26/27)
• Funds the Minnesota Agricultural Education Leadership Council (an additional $100,000 for a total $600,000 in FY26/27)
• Provides funding for County Ag Inspectors ($1 million in FY26/27)

The funding bill will take effect July 1, 2025.

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Media Contact
Allen Sommerfeld, MDA Communications
651-201-6185
Allen.Sommerfeld@state.mn.us