Legislative Update

LEGISLATIVE UPDATE

Written by: Andy Martin, Legislative and Public Affairs Officer

Senator Westrum (wearing red tie) and the Minnesota Farm Credit Committee

Winter is a busy season at most state capitols and in 2022 that holds true in Minnesota and Wisconsin where both legislatures have been in session since January. During this flurry of activity, AgCountry’s Board of Directors has been busy engaging legislators and state leaders in discussions on key agriculture issues and legislative priorities.

WISCONSIN

In Wisconsin, the Farm Credit Services Legislative Day was held at the State Capitol on February 2. Board members from AgCountry, GreenStone FCS, and Compeer Financial gathered in Madison for this effort. Following policy briefings, the directors held over 25 meetings with legislators, state agency leaders, and key staff members.

The 2021-23 biennial budget bill contained several important provisions for Wisconsin farmers. Directors shared their appreciation for the time and attention legislative leaders and the Governor spent on agriculture issues during budget negotiations.

Agriculture highlights of the biennial budget included:

• $5 million over five years for an effort by the Department of Agriculture, Trade and Consumer Protection (DATCP), and Wisconsin Economic Development Corporation to increase agriculture export values 25% by 2026.

• $400,000 over the biennium for the Meat Processing Facility Infrastructure Grant program, which aims to grow Wisconsin’s meat industry and improve the long-term viability of the state’s livestock industry.

• Funding for four additional state meat inspectors was included in the budget, as the shortage of inspectors was identified by the state as a critical limiting factor to increasing processing capacity.

• $2 million over the biennium to fund University of Wisconsin-Madison Division of Extension specialist positions in the field of agricultural research.

• $1 million each year for DATCP’s Producer-Led Watershed Protection Grant Program, which is an example of a very successful farmer-led conservation initiative.

• $1.2 million a year for the Department of Natural Resource’s Well Testing and Remediation Grant program, which helps address high nitrate levels and other contaminants in drinking water by assisting rural well owners who repair, upgrade, or install filtration systems to improve drinking water quality.

Directors also expressed support for two pieces of legislation currently under consideration that would expand farmer-led nitrate reduction and ag water quality initiatives. The first bill, AB 727/ SB 677, would provide $2 million for a Nitrogen Optimization Pilot program that would allow DATCP to award grants of up to $50,000 to farmers who implement projects to optimize commercial nitrogen use. The bill also makes $400,000 per year available for crop insurance premium rebates for cover crops ($5 per acre) as well as funding a three-year hydrogeologist position that would focus on depth-to-bedrock information at the local level. The second bill, AB 728/SB 678, expands eligibility for both the Rural Well Compensation Grant program and the Producer-Led Watershed Protection Grant Program. The bills are winding their way through the legislative process and next steps include votes by the full Assembly and Senate.

It is expected that the legislature will adjourn in early March 2022 and turn its attention to the 2022 elections.

Minnesota State Representative Paul Anderson (standing left) joined members of the Minnesota Farm Credit Committee February 16 to provide a legislative update

MINNESOTA

The Minnesota Farm Credit Legislative Committee, led by board members from AgCountry and Compeer Financial, hosted a day at the Capitol on February 16.

Throughout the day, directors held discussions with legislative and state agency leaders to express support for the committee’s priorities, which include: an expansion of the Beginning Farmer Tax Credit; additional staff resources for the Department of Agriculture’s Rural Finance Authority (RFA); and equipment upgrades for the Veterinary Diagnostic Laboratory at the University of Minnesota.

With the passage of a two-year budget bill during the 2021 session, no official action is required by the legislature in 2022; however, state leaders are considering options for the record $7.7 billion budget surplus, including potential funding adjustments and tax cuts. The Minnesota Department of Agriculture has requested over $50 million in supplemental funding for the current biennium. Some of the funding requests included $3 million for livestock processing; $3 million for incentives for meat processing workers; $2.5 million for meat processing technical program expansion; $1.5 million for animal disease preparedness and response; $5 million for Farm to Food Shelf hunger relief; $3 million for the University of Minnesota’s Forever Green initiative; $5 million for a new grain indemnity fund; and $12 million for a “healthy soils” grant program.

In addition to the actions on the budget, legislators will likely consider a public construction bonding bill. Lawmakers are expected to wrap up the session by late spring, as the state constitution requires adjournment no later than May 23, 2022.

NORTH DAKOTA

The Legislature in North Dakota only formally meets in odd numbered years. As the year is 2022, there is no legislative update for that state. We look forward to connecting with elected officials in the state as the next session gets closer.

AgCountry Director Jim Jarvis (left) and Wisconsin State Representative Kevin Peterson

AgCountry Director Karen Kerner (right) and Wisconsin State Senator Janet Bewley

AgCountry Director Mary Kay Van Der Geest and Wisconsin State Senator Jerry Petrowski