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Lawmakers hear proposal to refine Maine Agriculture, Food and Forest Products Infrastructure Investment Fund and advisory board rules
Summary
Representative Lisonbee Hepler and stakeholders said the Fund has been stood up and an advisory board formed; witnesses urged the Legislature to consider capitalizing the Fund and approved conflict-of-interest and eligibility clarifications to help scale processing and manufacturing capacity for agriculture and forest products across Maine.
Sponsor and background: Representative Lisonbee Hepler presented LD 1252, a statutory cleanup and clarification for the Maine Agriculture, Food and Forest Products Infrastructure Investment Fund and its advisory board. The bill revises eligibility language (requiring facilities that receive a disbursement to be established in-state) and adds conflict-of-interest recusal language for advisory board members.
Why supporters want it: Coastal Enterprises, Inc. (Amy Winston), MOFGA (Heather Spalding) and DACF Director Michelle Webb testified that the Fund is a necessary state vehicle to address persistent gaps in processing, packaging and mid-supply chain infrastructure. Witnesses noted the $20 million Agricultural Infrastructure Investment Program (AIP) distributed federal ARPA funds in 2022 and was oversubscribed, providing evidence of demand; recent federal RFSI/USDA rounds were also oversubscribed.
Board and program details: The advisory board was populated recently and has begun rulemaking and planning. DACF noted conservative estimates of demand exceed $160 million across the agricultural sector alone and said the board is developing funding priorities and financial instruments. CEI said the Fund will allow private and mission-based lenders to leverage state capital for strategic investments.
Specific concerns: The Maine Forest Products Council (Patrick Stauch) urged caution about wording that would require facilities to obtain in-state forest products "to the extent practicable," citing cross-border flows of wood (imports/exports) and recommending alternatives such as clarifying "logistically and financially practicable" or adding a preference rather than a hard requirement.
Funding and next steps: Witnesses urged the Legislature to consider providing a capital infusion (witnesses floated $5M as an initial commitment for the Fund), noting the Fund itself has been stood up and rulemaking is underway. Director Webb and advisory board members said they plan to proceed with rulemaking and invited the committee to consider funding to leverage private capital.
Ending: Committee asked agencies for advisory board membership list and for more details on planned instruments and priorities for the work session; sponsors and witnesses asked the committee to consider future capital appropriations to enable strategic investments.
