Purpose of the Bill

The bill aims to support economic development in Minnesota by fostering the growth of new agricultural markets and supply chains. Specifically, it focuses on the development of continuous living cover crops, which contribute to sustainable agricultural practices.

Main Provisions

• Funding Allocation: The bill allocates $5,000,000 from the general fund for the fiscal year 2026. This money is directed to the commissioner of employment and economic development.
• Grants for Development: These funds will be used to make grants to organizations in Minnesota. The goal is to assist in developing enterprises, supply chains, and markets for continuous living cover crops, including emerging systems like regenerative poultry, silvopasture systems, Kernza (a perennial grain), winter camelina, and elderberry.
• Reporting Requirement: The bill mandates that by January 15, 2027, the commissioner must report on how the grant funds were used, including administrative expenses, to the legislative committees responsible for economic development and agriculture.
• Exclusivity of Grants: A grantee cannot receive a grant for the same purpose from multiple agencies within the same calendar year.

Significant Changes to Existing Law

• Introduces a new funding and support mechanism specifically targeting the early-stage commercial development of continuous living cover crops.
• Requires comprehensive reporting on the use and distribution of grant funds to ensure accountability and transparency.

Relevant Terms

• Economic development
• Continuous living cover crops
• General fund
• Regenerative agriculture
• Supply chains
• Kernza
• Silvopasture systems
• Winter camelina
• Elderberry