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Senate committee hears bill to make Agri grant program a dedicated account
Summary
The Minnesota Senate panel heard testimony supporting Senate File 1172, which would create a dedicated account for the Agri grant program to keep appropriated and donated funds within that program and allow interest accrual and gift acceptance.
Sen. Kupak presented Senate File 1172 to the Minnesota Senate Committee on Agriculture, Veterans, Broadband and Rural Development, proposing that the Agri program be established as a dedicated account within the state agriculture fund and the state treasury. The bill was laid over for possible inclusion.
Supporters told the committee the change would keep money appropriated to Agri from reverting to the general fund when grant projects fail or are canceled, allow the fund to earn interest and give the Minnesota Department of Agriculture (MDA) authority to accept gifts and grants that supplement legislative appropriations. "This would ensure that money we appropriate to Agri actually stays within Agri to help farmers and others in agriculture," Sen. Kupak said.
Gary Ruedich, president of the Minnesota Farmers Union, testified in support, saying Agri gives the MDA flexibility to respond quickly to crises such as COVID-19 supply-chain interruptions and avian influenza. Ruedich said the program funds farm-to-school, biofuels infrastructure grants, farm business management scholarships and small-processor support. Andrea Vavalo (Deputy Commissioner, Minnesota Department of Agriculture) explained that subdivision language in current statute defines eligible Agri activities and that the commissioner administers grants through a competitive process and review committee recommendations.
Committee members asked for clarification on what "any source" means for gifts and donations and for examples of past gifts; Vavalo said Minnesota Corn Growers had gifted about $1 million for a biofuels infrastructure grant. Senator Kupak and testifiers emphasized that making Agri a dedicated account is structural (not an immediate additional appropriation) but would preserve funds that the legislature intends for agricultural programs.
The committee laid Senate File 1172 over for possible inclusion.
Ending: The bill drew broad support from farm groups and MDA staff who said the change would improve program sustainability and responsiveness; the committee did not take a final vote and held the file for further consideration.
