Purpose

This bill would provide funding to support developing markets for oats in Minnesota. It authorizes an appropriation to improve soil health and water quality by reducing erosion and nitrate leaching. Grants would go to Minnesota farmers, aggregators, and processors to invest in infrastructure or equipment that supports growing, harvesting, processing, storing, transporting, wholesaling, or distributing oats.

Main provisions

• Appropriation amount and source: $450,000 in fiscal year 2027 from the Environment and Natural Resources Trust Fund (ENRTF).
• Recipient: Commissioner of Agriculture will administer the grants.
• Needs addressed: Improve soil health and water quality by reducing erosion and nitrate leaching.
• Eligible recipients: Farmers, aggregators, and processors in Minnesota.
• Use of funds: Grants to invest in infrastructure or equipment used across the oats supply chain, including cultivating, harvesting, processing, storing, transporting, wholesaling, and distributing oats.
• Purpose alignment: The grants are intended to develop markets for oats in Minnesota.

Funding and fiscal details

• When: Fiscal year 2027.
• How funds are used: To award grants for infrastructure or equipment investments that support oats production and distribution.
• Repayment terms: This appropriation is exempt from the income repayment requirements described in Minnesota Statutes 116P.10, paragraph c.

Significant changes to existing law

• Adds an exemption for this ENRTF-based appropriation from the income repayment requirements in Minnesota Statutes 116P.10, paragraph c.

Practical impact

• Environmental: Aims to protect soil health and reduce nutrient runoff (nitrate leaching) through better infrastructure and practices.
• Economic: Seeks to bolster the oats industry by enabling investment across the supply chain, potentially increasing production, processing capacity, and market development within Minnesota.

Relevant Terms environment and natural resources trust fund commissioner of agriculture soil health water quality erosion nitrate leaching nitrate runoff grants farmers aggregators processors infrastructure equipment cultivating harvesting processing storing transporting wholesaling distributing oats income repayment requirements Minnesota Statutes 116P.10 paragraph c fiscal year 2027 appropriation