Committee advances $5-per-acre water-quality credit for certified farms, refers bill to environment committee

Senate File 12-69, proposing a $5-per-acre tax credit for farmland enrolled in Minnesota's Agricultural Water Quality Certification Program (targeted to eight southeast counties), was amended and referred without recommendation to the Environment, Climate and Legacy committee on Wednesday.

Sponsor Senator Drazkowski described the bill as a voluntary "carrot" to increase participation in the certification program and encourage conservation practices that reduce nutrient loss. "Two years ago the EPA raided two farms in Southeast Minnesota..." Drazkowski said, referencing enforcement attention that led state agencies to develop a coordinated short-, intermediate- and long-term plan. The bill would automate credit issuance by requiring the Commissioner of Agriculture to certify enrolled farms and notify county assessors annually.

Committee members and ag stakeholders emphasized the program's voluntary, on-farm certifier model. Hunter Peterson of the Minnesota Farm Bureau and Stu Lohrey of the Minnesota Farmers Union testified in support, saying the program is a successful, boots-on-the-ground certification that has produced measurable nitrate reductions. "Certified farms have been shown to reduce nitrate loss upwards of 45% through adoption of conservation practices," Lohrey summarized, citing Department of Agriculture research.

Senator Drazkowski moved and the committee adopted an oral amendment to change the appropriation funding source from the General Fund to the Clean Water Fund; counsel then offered and the committee adopted a corresponding amendment on the next line. After debate on jurisdiction, the bill was referred without recommendation to the Environment committee so that the Clean Water Fund appropriation could be reviewed by that committee.

Action: the committee adopted funding-source amendments (General Fund -> Clean Water Fund) and referred Senate File 12-69 without recommendation to the Environment, Climate and Legacy committee. The bill sets procedures for certification, county auditor reporting, Revenue Department reimbursement to taxing districts (excluding school districts), and additional steps to reimburse schools via the Commissioner of Education.

Supporters said the credit is intended to increase enrollment and adoption of conservation practices in vulnerable karst geologies of southeast Minnesota; critics in committee asked that the Clean Water Fund's priorities and council guidance be considered in the environment committee review.