Rep. Fisher proposes carving mill income for wheat-breeding funds; committee asks for more details

Representative Fisher presented an amendment to Senate Bill 2014 that would direct additional transfers from net income earned by the State Mill and Elevator Association to support wheat-breeding programs at North Dakota State University’s main experiment station and branch research centers.

Fisher’s amendment would add two new transfers in Section 16: 3% of the mill’s net income to the main experiment station fund for a wheat-breeding program and 3% to a special fund allocated equally among branch research centers that participate in wheat breeding. Fisher said the proposed language follows the existing structure that directs 5% to the agricultural products utilization fund and would expand the distribution to directly support breeding work performed both on the main campus and at branch stations across the state.

Budget staff and committee members discussed expected dollar magnitudes. Committee staff estimated the 3% transfer would amount to about $600,000 per year (roughly $1.2 million per biennium) for each 3% line; combined, the two 3% lines would be about $1.2 million per year or $2.4 million per biennium. Staff also said that if the branch allocation is divided among six centers, each center would see roughly $100,000 per year under the proposal.

Members sought more detail before acting. Questions included whether branch stations currently perform wheat-breeding work, how much current funding the wheat-breeding programs receive from general funds and grants, what the program costs are today, and whether additional dollars would mainly cover salaries, equipment, seasonal help, or operating expenses. Representative Meyer and others asked committee staff to obtain a breakdown from the experiment station leadership (for example, Dr. Greg Lardy was suggested) showing current expenditures for wheat-breeding at main and branch stations and the amount of soft-funded versus general-funded support.

Several members noted the long lead times for plant-breeding programs and the role of private-sector research: committee members said breeding and seed development can take seven to ten years and that private breeders sometimes capture premium seed fees paid by farmers. Several representatives supported the concept in principle but requested further information on current expenditures, the anticipated uses of the funds (salaries, summer help, equipment, operating), and possible alternative funding sources.

No committee vote was taken on Fisher’s amendment during the meeting; committee members asked the sponsor to return with requested financial breakdowns before the panel considers advancing the change.