Appropriations committee halves proposed milk-processing line of credit to $5 million, sets up program framework

The Appropriations Committee on Wednesday amended Senate Bill 2342 to reduce a proposed line of credit for milk-processing facility incentives from $10,000,000 to $5,000,000 and to establish a framework for a value-added milk-processing facility incentive program.

Committee members said the measure creates an incentive program intended to support infrastructure needed for dairy processing facilities, including roads, utilities, wastewater and stormwater conveyance, rail access and other site work. The legislation directs the agriculture diversification and development committee to create a competitive scoring process and award grants after a facility achieves full operational processing capacity.

Why it matters Committee members emphasized that dairies typically must be in place before processing plants are viable, and that processing facilities entail substantial capital investment. The committee recorded that processing facilities can range widely in cost and that infrastructure access (for example wastewater capacity and reliable water supply) is a key factor in attracting processing investment.

Program design and eligibility The bill language included a non-exhaustive list of qualified infrastructure: natural gas, electrical supply, roads, water lines, wastewater lines, stormwater conveyance and rail lines. The draft program ties grant distribution to completion milestones; the transcript records that grant awards are distributed after the project achieves 100% of processing capacity.

Formal actions - Motion to amend SB 2342 to reduce the proposed line of credit from $10,000,000 to $5,000,000 and to set up a value-added milk-processing facility incentive program administered by an agriculture diversification and development committee: moved by Representative Brandenburg; second by Representative Munson; amendment adopted by roll call (vote announced as 22 yes, 0 no, 1 absent). - Motion to give SB 2342 a do-pass recommendation as amended: seconded and adopted on a roll call reported as 22 yes, 0 no, 1 absent. Representative Brandenburg was recorded as the member who will carry the bill.

What the record does and does not show The transcript records that the line of credit was cut to $5,000,000 and that the committee expects the program to be in place for grants once dairies and processing demand materialize. The transcript includes an example cost range for processing plants described during discussion; it does not finalize grant award sizes or scoring criteria, which the newly tasked committee must develop. The bill includes a sunset date reflected on the record (June 30, 2027).

Next steps The agriculture diversification and development committee is charged with developing the incentive program and scoring criteria; Representative Brandenburg will carry SB 2342 to the floor following the committee's approval.