Minnesota Launches First U.S. Organic Farming Cost-Share Program

ST. PAUL, MN—The state of MN has launched what it says is the first in the U.S. state-funded cost-share program for organic farmers.

The state’s legislature in May enacted the Organic Agriculture Promotion and Education Act, which increases the promotion, education and infrastructure support for organic producers in MN. The legislation also provides regulatory relief for organic farmers by establishing a cost-share program under which they can qualify for a cost-share rebate of up to $200/year/farm for five years. The program can serve up to 175 certified-organic farmers per year.

The annual budget for these programs is $50,000, of which $35,000 is earmarked for the cost-sharing program and $15,000 is for administration and promotional efforts.

Kevin Edberg, director of marketing for the MN Department of Agriculture (MDA), headquartered in St. Paul, says he’s aware that, given the expenses and three-year time period to convert to organic production, a $200 rebate by itself may not be enough to motivate farmers to go into organic production. But the cost-share program is seen by some in the MN legislature as a way to encourage the growing organic industry and by others as a way to recognize that organic farmers don’t benefit from state-funded pesticide-use training programs, Edberg says.

In addition, the law will: expand the state’s commissioner of agriculture’s duties to include the promotion of opportunities in organic agriculture; add two organic farmers to the MDA shared-savings-loan review panel; add two organic farmers to MDA’s sustainable agriculture technical review panel; expand the state’s Organic Advisory Task Force; and direct the University of Minnesota Extension to spend more time supporting organic agriculture.

The MN program represents the first organic cost-share program to be implemented in the U.S., according to Edberg. “I’m not aware of any other state that has enacted legislation like this,” he says. “It’s a policy change that signals awareness of the [organic] industry and our interest in working with that industry.”

The first item on the agenda for MDA’s Organic Advisory Task Force is to discuss how to implement the cost-share program. Other agenda items include preparation to respond to the next round of proposed national organic rules by USDA and a review of requests by some certifiers to be certified in MN.