Senate Bill 2342 passes with $5M for North Dakota milk processing incentives

The North Dakota House Appropriations Committee convened on April 16, 2025, to discuss key legislative matters, primarily focusing on House Bill 2342. The bill, sponsored by Senator Thomas, proposes a line of credit of $5 million for a milk processing facility incentive program, a reduction from the original $10 million.

The meeting began with a presentation on the purpose of the bill, which aims to support the establishment of milk processing plants in North Dakota. Representative Brandenburg noted that the amendment to reduce the funding commitment was acceptable to the sponsor. The program is designed to incentivize the development of dairy processing facilities, which are essential for the state's agricultural diversification.

Committee members discussed the infrastructure needs for such facilities, emphasizing the importance of access to water and wastewater management. Representative Scott highlighted that these factors are crucial for attracting processing operations. The bill outlines that the funds could be used for necessary infrastructure, including natural gas, electrical supply, and water lines.

Questions arose regarding the distribution of the $5 million. It was clarified that the Agriculture Diversification and Development Committee would establish the criteria for grants, allowing for the possibility of funding multiple facilities or a single facility, depending on the scoring method developed.

The committee also addressed the timeline for the program, noting that it is set to sunset on June 30, 2027, unless further action is taken. The consensus among committee members was to establish the program now, anticipating that as dairy operations develop, the need for processing facilities will follow.

Following discussions, Representative Brandenburg moved to adopt the amendment, which was seconded by Representative Munson. The amendment passed unanimously with a vote of 22-0-1. The committee then voted on the amended bill, which also passed with the same majority.

In conclusion, the meeting successfully advanced House Bill 2342, setting the stage for future developments in North Dakota's dairy processing industry. The committee's actions reflect a proactive approach to fostering agricultural growth and infrastructure development in the state.