RELEASE: House Ways and Means Committee approves drought relief package

SAINT PAUL, Minn. – Today, the House Ways and Means Committee approved an assistance package for livestock farmers and specialty crop producers harmed by the drought of 2021. The legislation, authored by Rep. Mike Sundin (DFL – Esko), includes $5.1 million worth of grants and other direct financial assistance, as well as an additional $5 million for the Rural Finance Authority’s revolving loan account targeted toward drought relief. No Republican committee members voted for the bill.

“The drought has caused an extremely difficult situation for Minnesota’s farmers and food producers. They are vital toward not only ensuring families have food to put on the table, but also toward the success of Minnesota’s economy,” Rep. Sundin said. “As our farmers are tackling high costs and other economic uncertainty, today we’re one step closer to delivering this important relief.”

Since last spring, drought conditions have harmed farming and livestock operations across Minnesota. Farmers and ranchers experienced a lack of access to forage crops and hay, while specialty crop producers, such as farmers market growers, couldn’t access traditional crop insurance and other federally backed financial assistance.

The bill appropriates $5 million to the Minnesota Department of Agriculture (MDA) to provide grants up to $10,000 for drought-related expenses. Of that amount, the bill reserves $1 million for livestock producers, $1 million for specialty crop producers, $500,000 for farmers market vendors who are livestock or specialty crop growers, and $100,000 to reimburse farmers for expenses to transport hay and forage. The bill also requires MDA to do outreach to emerging farmers about the relief programs.

The legislation also provides $5 million for the Rural Finance Authority’s revolving loan account for drought assistance and eases some requirements to qualify for the loans. 

Video of today’s hearing will be available on House Public Information Services’ YouTube channel. Documents and other information from the hearing will be available on the committee webpage.