The bill establishes a Biofertilizer Water Preservation Program aimed at improving water quality in Minnesota by incentivizing farmers to enhance nitrogen management practices. It amends Minnesota Statutes 2024, section 18C.005, by adding a new subdivision that defines "commercial nitrogen fertilizer" as a fertilizer containing at least 25 percent nitrogen. The program will be developed and administered by the commissioner of agriculture in consultation with the commissioner of natural resources and local soil and water conservation districts. It will include a payment structure for farmers who reduce their use of commercial nitrogen fertilizers by utilizing qualifying products, with a minimum payment rate of $5 per acre.

Additionally, the bill mandates a biennial review of the program to assess the effectiveness of the nitrogen reduction rates and to identify new qualifying products. The commissioner is also required to adopt rules to implement the program. An appropriation of $5 million from the general fund is allocated for fiscal year 2026 to support the establishment and administration of the program, with provisions for any unencumbered balance to carry over into fiscal year 2027.

Statutes affected:
Introduction: 18C.005