SF1753

Purpose

To provide funding for the Agriculture Best Management Practices (BMP) Loan Program by transferring money from the General Fund to a dedicated loan account. This supports low-interest or no-interest loans to help farmers and others adopt BMPs in the state.

Main Provisions

• Transfers: $1,425,000 in fiscal year 2026 and $1,425,000 in fiscal year 2027 will be moved from the General Fund to the Agricultural and Environmental Revolving Loan Account in the Special Revenue Fund.
• Use of funds: The money is for low-interest or no-interest loans issued through the Agriculture Best Management Practices Loan Program.
• Legal basis: This transfer is made under Minnesota Statutes section 17.117, subdivision 5a.
• Baseline future transfers: The base amount for future transfers is $1,425,000 in fiscal year 2028 and each year after.

Implications and Impact

• Creates ongoing funding for BMP loans starting in 2028, increasing the available support for BMP adoption.
• Strengthens the BMP loan program by providing more capital for favorable loan terms.

Relationship to Existing Law

• Funds go to the Agricultural and Environmental Revolving Loan Account within the Special Revenue Fund, sourced from the General Fund.
• Uses are tied to the BMP loan program authorized under Minnesota Statutes section 17.117.

Significance

• Aims to promote agricultural environmental stewardship by making BMPs more affordable through low- or no-interest loans.

Relevant Terms agriculture best management practices loan program Agricultural and Environmental Revolving Loan Account Special Revenue Fund General Fund low-interest loans no-interest loans Minnesota Statutes section 17.117 fiscal year 2026 fiscal year 2027 fiscal year 2028