The bill establishes a Biofertilizer Water Preservation Pilot Program aimed at improving water quality in Minnesota by incentivizing farmers to enhance nitrogen management practices. The program, administered by the commissioner of agriculture in consultation with the commissioner of natural resources and local soil and water conservation districts, will provide financial incentives to farmers who reduce their use of commercial nitrogen fertilizers by utilizing qualifying biofertilizer products. The bill outlines specific criteria for participation, including a minimum reduction rate of either 15% or 30 pounds per acre, and mandates that the Department of Agriculture review and potentially adjust payment rates annually based on inflation and advancements in fertilizer technology.

Additionally, the bill requires the commissioner to submit a report by January 8, 2028, detailing the program's effectiveness, including the number of participating farmers, the total acreage involved, and the estimated reduction in commercial nitrogen fertilizer usage. The report will also assess whether the minimum reduction rate should be increased and identify any new qualifying products. To support the implementation of this program, the bill appropriates $5 million from the general fund for fiscal year 2026, with provisions for any unencumbered balance to carry over into fiscal year 2027. Furthermore, it ensures that data submitted by farmers for program qualification is classified as nonpublic to protect their privacy.

Statutes affected:
Introduction: 18C.005