Biennial budget proposal

Gov. Mark Dayton proposes a series of shifts, fee increases, policy changes and staff reductions to reach his $170.3 million projected budget for the Department of Agriculture for the 2012-2013 biennium.

Department staff presented the recommendations to the House Agriculture and Rural Development Policy and Finance Committee Feb. 23. No action was taken.

The budget includes: $9.2 million from Clean Water funds for the Agriculture Best Management Practices revolving loan program. There are about 750 loans awarded each year and the money would supplement the fund’s $64 million principal.

It also calls for $3.5 million in Clean Water funds to support the Discovery Farms concept that enables farmers to develop demonstration plots to promote and evaluate best management practices, and $1.7 million in Clean Water funds to update the nitrogen fertilizer management plan and to develop public-private partnerships in responding to contamination of drinking water.

The plan would pay off the remaining ethanol producer payments in 2012 and shift the 2013 ethanol appropriation to the Agricultural Growth, Research and Innovation program.

There would be a 5 percent reduction in the department’s General Fund base budget by consolidating two divisions, not filling vacancies left by early retirements, reducing one division director position and vacating office space leased from the St. Paul Port Authority.

Overall the agriculture department would experience a 15% reduction, when ethanol payments are included.

In addition, food inspection fees would increase 15 percent — the first time since 2003 — to boost the number of inspections, which have fallen behind schedule. Grocery and convenience stores pay the inspection fee based on gross annual sales.

The governor is also proposing a public safety surcharge on the sale of anhydrous ammonia fertilizer. The 75 cents per ton surcharge is expected to raise an additional $220,000, which would be used to hire more inspectors. Facilities that are seriously non-compliant and require re-inspection would be subject to a $400 fee. Those in compliance would be rewarded with less frequent inspections so inspectors could concentrate more on non-compliant facilities.

A $2 million, one-time appropriation from the Outdoor Heritage Fund to deal with the emerald ash borer infestation is not recommended for renewal.