State Budget Preserves Key Farm Tools

By Scout Nelson

In a closely contested session, Minnesota lawmakers passed a $66 billion bipartisan budget on June 10 during a 21-hour special session, narrowly avoiding a July government shutdown. With a tied House and a one-seat Democratic majority in the Senate, passing 14 bills required cooperation from both parties.

The Minnesota Soybean Growers Association (MSGA) saw both wins and losses. MSGA supported the Environmental and Natural Resources Omnibus Bill, which did not include new restrictions on pesticides, seeds, or fertilizers.

“This session was a bit of a mixed bag,” said Joe Smentek, MSGA executive director. “We’re frustrated by the inability for lawmakers to work together to better the environment for Minnesota soybean farmers. However, we were pleased to see many of our priorities included in the ag bill and we extend our appreciation to Ag Committee leaders on both sides of the aisle for working in good faith to help farmers, who contribute to one of Minnesota’s top economic industries.”

The bonding bill provided nearly $700 million in infrastructure funding, with $44 million going toward natural resources and $60 million for Minnesota’s higher education facilities. These investments aim to support long-term development across the state.

A major focus for MSGA was advancing the Sustainable Aviation Fuel (SAF) tax incentive, designed to boost demand for soy-based biofuels. Initially, the Senate’s tax bill included expanded SAF credit provisions like higher allocations, updated definitions, and extended timelines through 2035. However, opposition in the House led to the removal of most enhancements.

Despite these setbacks, MSGA secured language that allows carry forward of previous SAF appropriations, keeping the program alive. Executive Director Joe Smentek and MSGA plan to continue pushing for expanded SAF incentives in future sessions.

MSGA remains committed to advocating for Minnesota soybean farmers and plans to meet lawmakers at Farmfest to continue discussions on policy reforms, biofuel expansion, and market development.

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