Minnesota Department of Agriculture details grants, SAF tax credit and staffing risks as budget tightens

Commissioner Tom Peterson of the Minnesota Department of Agriculture told the Senate committee on Wednesday that the department is managing a wide portfolio of grant programs and regulatory duties while facing pressure from declining federal matches and evolving program demands.

The briefing summarized program activity across farm-to-school grants, beginning farmer assistance, soil-health cost-share, nitrate-mitigation efforts in southeast Minnesota, new green-fertilizer and CDFI technical-assistance grants, and implementation of a state sustainable aviation fuel (SAF) tax credit. "I love being a chief cheerleader for all of our different parts of agriculture in Minnesota," Peterson said as he walked senators through the agency's work.

The Department emphasized why the programs matter: Minnesota has about 65,300 farms and a diversified production base that includes sugar beets, hogs, turkeys, corn and soybeans, and dairy. The department's current biennial budget is roughly $396,000,000 and it employs about 508 people across a mix of permanent and seasonal roles.

Program highlights and near-term details

- Farm-to-school: The department said it awarded nearly $1 million in the previous year across 62 purchase grants and 17 equipment grants and expanded eligibility to early care providers. The agency has signed a cooperative agreement with USDA that could bring up to $13 million for local foods in schools in the coming biennium and requires a state plan by April 30, 2025. The department noted the federal funds include no administrative allowance and will require further budget discussion with the…