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MDA briefed senators on declining dairy farms and funding; Senate File 825 laid over
Summary
The Minnesota Department of Agriculture told the Senate Ag Committee the state lost hundreds of dairy farms since 2023, discussed dairy programs and grants, and backed Senate File 825 to continue Dairy Development and Profitability Enhancement funding; the committee laid the bill over for possible inclusion.
Tom Peterson, commissioner of the Minnesota Department of Agriculture, told the Senate Committee on Agriculture, Veterans, Broadband and Rural Development on Feb. 5 that Minnesota’s number of permitted dairies has declined and the department supports continued funding for dairy assistance programs.
“We have 1,678 permitted dairies,” Peterson said, noting members had been given an older handout listing 1,971 dairies from January 2023. Peterson said the state has about 440,000 dairy cows and that the number of farms has fallen while total cow numbers have stayed roughly steady.
Peterson and other witnesses described several state programs that assist dairy farms. The department funds the Minnesota Dairy Initiative (MDI), which conducted 246 dairy farm enrollments in fiscal year 2023 covering about 64,000 cows (13% of state dairy farms). The Dairy Business Planning Grant provides noncompetitive grants to help producers with feasibility studies, modernization and transfer planning; Commissioner Peterson said the grants can be up to $5,000 per applicant and that approximately $134,000 of related appropriations were available for the program in the current fiscal year.
Garrett Luthins, president of Minnesota Milk Producers Association, and Lucas Sohstrom, executive director of Minnesota Milk Producers, urged support for Senate File 825, which would continue the Dairy Development and Profitability Enhancement appropriation. “The Dairy Profit Teams … take on a project,” Sohstrom said, describing teams that help producers with transition planning, negative‑balance problems and construction projects. The department told the committee it supports the bill as base funding for the program.
Senator Otke, sponsor of Senate File 825, said the program was established in 1996 and asked the committee to continue an annual appropriation of $634,000 for fiscal years 2026 and 2027. He summarized the program’s history and purposes, including farm business management, extension specialists and dairy partners who assist with financial analysis and production systems.
Committee members asked clarifying questions about the federal farm‑bill dairy supports, implementation of earned sick and safe time (ESST) on farms, and processing capacity. Peterson noted ongoing concerns about a processor, First District Association, whose wastewater treatment constraints affect about one‑third of Minnesota farmers who sell milk to that cooperative; the department said it is exploring bonding, PFA, and USDA Rural Development options as part of ongoing work.
After testimony and questions, the committee laid Senate File 825 over for possible inclusion. No roll‑call vote was recorded in the hearing minutes; the chair stated the bill would be “laid over for possible inclusion.”
