Committee fails to advance dairy‑aid expansion; bill split 14–13 and laid over
March 23, 2026 | 2026 Legislature MN, Minnesota
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A proposed change to Minnesota’s dairy assistance program that would allow about 30 farms that began operating after 2022 to access a $4 million state appropriation failed to pass the House Ways and Means Committee on a membership threshold even after a 14–13 vote in favor.
Representative Nelson, the bill’s author, told the committee the change corrects an unintended eligibility gap for newer dairy operations by using a farm’s DMC (Dairy Margin Coverage) enrollment history when 2022 production records are not available. "This bill corrects that issue by expanding eligibility to new dairy farmers who either did not sell milk during 2022 or sold milk for only part of that year," Nelson said.
Nonpartisan fiscal staff explained the proposal would not increase general‑fund costs because it repurposes $4 million previously appropriated for the program. Tom Peterson, commissioner of the Minnesota Department of Agriculture, urged swift action because the federal DMC signup is open and the state program could move payments quickly, saying Minnesota has lost "1,000 farmers in the last 2 years." He warned that missing the April 9 sign‑up could leave newer farms ineligible.
Members asked about average payment size and whether the 16 million‑pound production cap still targets smaller farms. Peterson said exact payout averages were not yet known but indicated most eligible farms would receive payments below set maximums and that the program aims at smaller operations.
Co‑chair Frasier said caucus conversations remained and the committee would not move the bill that day; a roll call was held that recorded 14 ayes and 13 nays but the committee requires a majority of its full membership to advance the bill, so the motion failed and the measure was laid over pending further action.
The committee did not adopt the bill; proponents said the change would help beginning farmers, while opponents or undecided members asked for more information before advancing the measure.
Representative Nelson, the bill’s author, told the committee the change corrects an unintended eligibility gap for newer dairy operations by using a farm’s DMC (Dairy Margin Coverage) enrollment history when 2022 production records are not available. "This bill corrects that issue by expanding eligibility to new dairy farmers who either did not sell milk during 2022 or sold milk for only part of that year," Nelson said.
Nonpartisan fiscal staff explained the proposal would not increase general‑fund costs because it repurposes $4 million previously appropriated for the program. Tom Peterson, commissioner of the Minnesota Department of Agriculture, urged swift action because the federal DMC signup is open and the state program could move payments quickly, saying Minnesota has lost "1,000 farmers in the last 2 years." He warned that missing the April 9 sign‑up could leave newer farms ineligible.
Members asked about average payment size and whether the 16 million‑pound production cap still targets smaller farms. Peterson said exact payout averages were not yet known but indicated most eligible farms would receive payments below set maximums and that the program aims at smaller operations.
Co‑chair Frasier said caucus conversations remained and the committee would not move the bill that day; a roll call was held that recorded 14 ayes and 13 nays but the committee requires a majority of its full membership to advance the bill, so the motion failed and the measure was laid over pending further action.
The committee did not adopt the bill; proponents said the change would help beginning farmers, while opponents or undecided members asked for more information before advancing the measure.
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