HF3960

Purpose

This bill would increase and direct several transfers from the General Fund to multiple agriculture-related accounts in fiscal years 2026 and 2027. The goal is to fund avian influenza response, pollinator research, Minnesota Grown promotion, broad agricultural research and education programs, loan programs for farming practices, and grain-indemnity-related activities, among other initiatives.

Main Provisions and Key Allocations

• Agricultural Emergency Account

  • Transfer: 1,500,000 in FY 2026.
  • Eligible uses (up to 750,000): testing milk, milk products, poultry products, and pet food for avian influenza; biomonitoring for avian influenza in agricultural workers and farm workers who volunteer; development of rapid testing and human exposure risk models for avian influenza in urban wastewater treatment, drinking water, and wells (in partnership with the University of Minnesota).
  • Accountability: commissioner of agriculture must notify the chairs and ranking minority members of relevant committees before using or transferring money.

• Pollinator Research Account

  • Transfer: 100,000 in FY 2026 and 100,000 in FY 2027.
  • Forecasting: the commissioner of management and budget must include 100,000 each year in forecasts to the pollinator research account.

• Minnesota Grown Account

  • Transfers: 186,000 in FY 2026 and 261,000 in FY 2027 for Minnesota Grown grant programs.
  • Purpose: grants to promote Minnesota Grown.
  • Encumbrance/eligibility: funds encumbered under contract as of June 30, 2027 remain available until June 30, 2029.
  • Forecasting: included in annual forecasts with the same amounts in those years.

• Agriculture Research, Education, Extension, and Technology Transfer Account (for grants under the program)

  • Transfers: 10,677,000 in both FY 2026 and FY 2027.
  • Inside allocations (examples):
  • 600,000 per year for the Minnesota Agricultural Experiment Stations rapid response fund.
  • Up to 1,000,000 per year for research on avian influenza, salmonella, and other turkey-related diseases and prevention.
  • 2,500,000 per year for grants to the Minnesota Agricultural Education Leadership Council (priority to Farm Business Management challenge grants; a related amount steps to 2,250,000 in 2028 and beyond).
  • 3,500,000 per year for potato research (note: the exact amount listed is 3,500,000; included here as "potato research").
  • 802,000 per year for the Forever Green Initiative to protect natural resources while boosting farm profitability and productivity (perennial and winter crops integration).
  • 200,000 per year for natural stands of wild rice.
  • 250,000 per year for cultivated wild rice forward selection at the North Central Research and Outreach Center (including a tenure-track or research associate plant scientist).
  • 290,000 per year for prion-related crop contamination and exposure research (chronic wasting disease context; one-time allocation).
  • 75,000 per year for grants to Southwest Minnesota State University Foundation for the Minnesota Agriculture and Rural Leadership program (one-time allocation).
  • Oversight and reporting: the dean of the College of Food, Agricultural and Natural Resource Sciences must report by February 1 each year to legislative chairs/members detailing uses and achievements.

• Agricultural and Environmental Revolving Loan Account (BMP loans)

  • Transfers: 1,425,000 in FY 2026 and 1,425,000 in FY 2027.
  • Purpose: low-interest or no-interest loans issued through the Agriculture Best Management Practices loan program.
  • Forecasting: the commissioner of management and budget must include 1,425,000 each year in forecasts.

• Grain Indemnity Account (to Grain Buyers and Storage Account)

  • Transfer: 500,000 in FY 2026.

• Additional annual transfer requirement to support ongoing programs

  • The bill would require annual transfers of 10,352,000 from the General Fund to the Agriculture Research, Education, Extension, and Technology Transfer Account in each forecast through February 2027.

• Administrative costs

  • The commissioner may use up to 1% of the Agriculture Research, Education, Extension and Technology Transfer Account transfers to cover program administration costs.

• Onetime allocations

  • Certain line items (noted as one-time allocations) include the prion research funding and the Minnesota Agriculture and Rural Leadership program grants.

Notable Changes to Law

• Creates or increases funding across multiple accounts dedicated to agriculture-related activities, research, and outreach.
• Expands funding for avian influenza testing, biomonitoring, wastewater and drinking water risk modeling, and rapid response research.
• Increases support for pollinator research, Minnesota Grown promotions, and agricultural education leadership initiatives.
• Establishes substantial one-time allocations for specific research and leadership programs.
• Requires reporting to legislative committees and adds forecast-based funding planning through 2027.

Oversight, Reporting, and Administration

• Transfers and uses require communication to the chairs and ranking minority members before use.
• Annual forecasting and reporting requirements are added for several accounts (e.g., pollinator research, Minnesota Grown, and the Agricultural Research Education Extension and Technology Transfer Account).
• A dean-level reporting requirement ensures accountability for the College of Food, Agricultural and Natural Resource Sciences.

Effective Date and Forecasting

• Many transfers are tied to the effective date of the section and are included in forecasts prepared under Minnesota Statutes 16A.103 through February 2027.
• Some allocations are intended to be available through 2029 for existing encumbrances; others are limited to 2026–2027.

Overall Impact

• The bill substantially increases state funding available to agriculture-related programs for a two-year period (2026–2027), with several specific programs receiving new or expanded support.
• It emphasizes avian influenza preparedness, pollinator health, crop and farming research, and outreach/education programs, along with lending programs to support farming practices.

Relevant Terms - General Fund - Agricultural Emergency Account - Avian influenza - Biomonitoring - University of Minnesota - Rapid testing - Urban wastewater treatment - Drinking water treatment - Pollinator Research Account - Minnesota Grown Account - Minnesota Agricultural Experiment Stations - Forever Green Initiative - Agricultural Research, Education, Extension, and Technology Transfer Account - Farm Business Management - Agricultural Education Leadership Council - Agricultural Best Management Practices loan program - Agricultural and Environmental Revolving Loan Account - Grain Indemnity Account - Grain Buyers and Storage Account - Chronic wasting disease - Prions - Southwest Minnesota State University Foundation - North Central Research and Outreach Center - Wild rice (natural stands; cultivated forward selection)