Purpose

The bill aims to establish a Biofertilizer Innovation and Efficiency Program in Minnesota. This program seeks to improve water quality and promote efficient nitrogen management in agriculture by encouraging farmers to adopt innovative biofertilizer technologies.

Main Provisions

• Program Establishment: The Minnesota Department of Agriculture will develop and manage the program in collaboration with natural resources and soil water conservation districts. It will aim at reducing the use of commercial nitrogen fertilizers by incentivizing the use of biofertilizers.
• Incentives for Farmers: Qualifying Minnesota farmers can receive an annual per-acre payment if they demonstrate reduced use of commercial nitrogen fertilizers by either 15% or 30 pounds per acre, whichever is less.
• Payment Rate: Initially set at a minimum of $5 per acre, with revisions possible annually to adjust for inflation and technological advancements.
• Farmer Qualifications: To qualify, a farmer must be a resident operating in Minnesota, submit a nutrient management plan reducing nitrogen use, and enroll a minimum of 40 acres.

Significant Changes to Existing Law

• A new definition for "Commercial nitrogen fertilizer" is added, specifying a minimum nitrogen content of 25%.
• Introduction of a requirement for the commissioner to conduct periodic reviews and potential updates to minimum fertilizer reduction rates.
• Mandates rulemaking to facilitate the implementation of the program.

Funding

• A $1,500,000 appropriation from the general fund has been allocated for the fiscal year 2026 to support the program, with any unspent funds available through June 2027.

Rulemaking and Review

• The commissioner is required to adopt rules to administer the program, which includes reviewing potential qualifying products and technologies every two years to enhance the program's efficacy.

Relevant Terms

biofertilizer, nitrogen management, commercial nitrogen fertilizer, agriculture incentives, nutrient management, environmental conservation, water quality improvement.