Current rules tie eligibility to milk production in 2022, which excludes many recently established dairy farms. Supporters of the legislation say that creates an unfair gap, especially for younger producers and families who entered the industry after that year. The revised bill would instead allow producers to use their federal Dairy Margin Coverage enrollment history when 2022 production records are unavailable.

The legislation would not require additional state spending. Instead, it would redirect US$4 million already appropriated for the dairy aid program toward roughly 30 farms that were previously ineligible. State officials say the measure is designed to target smaller dairy operations, with an existing production cap of 16 million pounds of milk still in place.

Agriculture Commissioner Thom Petersen has urged lawmakers to act quickly because enrollment in the federal Dairy Margin Coverage program is already underway. He warned that delays could prevent eligible farms from accessing the aid this year, at a time when Minnesota’s dairy industry continues to shrink. According to Petersen, the state has lost around 1,000 dairy farmers in the past two years.