Montana Department of Agriculture seeks modest HB2 increases, $561,000 in lab equipment and expanded grant and monitoring authority

The Montana Department of Agriculture told the House Appropriations Section C on the record that it will seek modest increases in its House Bill 2 authority, primarily funded from state special revenue and fee-based accounts, and requested one-time funding for laboratory equipment and several program authority changes.

Deputy Director Zach Coccoli said the department’s biennial request keeps staffing steady: "the Department of Agriculture remains, as strong of a position financially and programmatically as I've seen in my tenure at the Montana Department of Agriculture." He told the committee the agency is asking for no new FTE and is emphasizing a small general fund proposal and mostly state special revenue authority adjustments.

Chief Financial Officer Cody Pierce briefed members that the agency’s annual budget is roughly $30 million, with about $20 million subject to HB2 review; roughly 60% of departmental funding comes from state special revenue, about 20% from federal grants and a smaller proprietary fund (the Hale insurance program). Pierce detailed decision packages the department will press for the upcoming biennium, including increased operational authority for the pesticide groundwater monitoring program (DP302), extra noxious‑weed grant authority (DP3005) and operating authority for the seed program (DP3006). He also listed one-time requests: laboratory equipment (DP3001), transition of produce inspections from paper to digital (DP3003), an organic system for federal compliance (DP3004), and stationary granulator stations for pesticide container recycling (DP3009).

Ian Foley, Ag Sciences Division administrator, described technical and program priorities that underpin the requests: a new Bozeman analytical chemistry lab shared with partner labs, an ongoing groundwater monitoring program of about 30 permanent sites, and an annual noxious‑weed grant program that awards roughly $2 million to counties and tribes. Foley said the analytical lab equipment ask includes replacement of aging instruments on a roughly 10‑year cycle; committee discussion identified a package of equipment worth several hundred thousand dollars, and staff referenced an equipment total around $561,000 for multiple pieces including an ion chromatography device used for elemental analysis.

Foley also told the committee that pesticide registration and license fees — nearly 13,000 product registrations — underwrite the pesticide and groundwater programs and that about 84% of the HB2 programs in Section C rely on state special revenue. He said organic certification covers about 300 operations in Montana and confirmed the department is seeking authority to spend returned (reverted) grant dollars back into the grant pool.

On newer grant awards, Coccoli said the department recently secured an EPA grant to support improved grazing, feedlot technology and precision fertilizer applications and described roughly $21 million in federal resources expected to support Montana agriculture programs.

Committee members pressed staff on details. Senator Ellis asked how the noxious weed and pesticide groundwater programs are funded; Foley said the noxious weed program draws interest from a roughly $10 million trust and, primarily, a percentage of the fuel tax, while pesticide groundwater work is funded through product registration fees and pesticide licensing. Representative Albus asked which equipment the $561,000 request would buy; staff said it includes multiple replacement pieces for the Bozeman lab, notably an ion chromatography device.

Foley and deputies also described digital transition plans: seed potato inspectors currently record findings on paper and the department proposes tablets and a partner system (adapted from Georgia’s produce inspection system) to increase efficiency and inspector safety.

The department addressed hemp and industry changes: Foley said hemp acreage in Montana fell from about 25,000 acres in 2023 to roughly 2,500 acres in 2024 and described why immediate reversion to USDA oversight could pose compliance challenges for fiber/grain varieties with different THC testing windows.

Public commenters representing the Montana Farm Bureau Federation, Montana Grain Growers, Trout Unlimited and Montana Farmers Union voiced support for the department’s budget and specific requests including the grain lab and noxious weed grant authority.

Next procedural steps: staff described the decision‑package list and asked the committee to consider the authority changes; there were no formal votes in this session. The subcommittee recessed for a 10‑minute break and reconvened for further questions before adjourning. The department said many of the authority requests would be funded from existing state special revenue and would not require ongoing general fund increases.