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Committee reviews AURI funding requests; two bills on value‑added agriculture held over
Summary
The committee heard testimony on funding increases for the Agricultural Utilization Research Institute (AURI). Representative Nelson’s bill would add $175,000 per year; Representative Gander carried an alternative bill matching the governor’s 2% recommendation. Both bills were held over for future consideration.
The House Ag Finance and Policy Committee heard two related proposals to increase state funding for the Agricultural Utilization Research Institute (AURI) and received testimony from AURI leadership describing the institute’s work to add value to farm products.
Representative Nelson moved House File 857, which the nonpartisan fiscal analyst said would increase AURI’s base appropriation of $4,343,000 by $175,000 per year (a $350,000 increase over the biennium) beginning in fiscal 2026; the analyst added the bill contains no language making the increase one‑time, so it would carry into the next biennium. Shannon Schlicht, AURI executive director, described AURI’s role in converting raw agricultural commodities into higher‑value products and said the requested increase would help offset rising personnel and operational costs. “We’re very proud of the work that we do… we worked on over 200 projects last year with Minnesota businesses,” Schlicht said.
Representative Gander then moved House File 38, described in testimony as matching the governor’s request (a roughly 2% increase). Gander said he preferred the larger request but offered the governor’s number “to create a marker” and to ensure a funding option is in committee consideration.
Why this matters: AURI conducts technical assistance, product development and commercialization work aimed at expanding markets and value for Minnesota agricultural commodities; proponents argued modest increases yield high economic returns.
Details from testimony: - The fiscal analyst (Mr. Savery) told members the base for each fiscal year in 2026–27 is $4,343,000 and the Nelson bill adds $175,000 per year (total $350,000 for the biennium), representing roughly a 4% increase over the biennium or about 2% per year. The governor’s request cited by Representative Gander is smaller (about a 2% increase). - AURI’s executive director reported a fiscal‑year return metric of about “45 to 1” in new capital, sales and jobs created/retained for state dollars invested; AURI staff said they worked on more than 200 projects last year and provide technical assistance and commercialization support across multiple sites. - Testimony emphasized AURI’s statewide reach and use as a resource for entrepreneurs and farmers seeking to add value to commodities.
Public testimony: Dan Sparks (AURI government and industry relations) and Shannon Schlicht (AURI executive director) presented on AURI’s recent work and thanked committee members and partners including the Minnesota Department of Agriculture, Minnesota Farmers Union and Minnesota Farm Bureau.
Committee action: Both House File 857 (Representative Nelson) and House File 38 (Representative Gander) were held over for future consideration; no final appropriation was adopted in committee. Members were encouraged to review AURI’s legislative report and grantee lists provided in the packet.
Ending: Members said they would review documentation and consider the bills later in the session; both proposals remain under consideration.
