Commodity agriculture is one heavily subsidized industry, so it was entertaining to watch a couple of Republican House members on the Minnesota House Agriculture Finance and Policy Committee fret about a bill to allocate $2 million to create a pilot plant-based food research and development grant program in the Department of Agriculture.
But the market! Who will break the news to the author of SF2483, the senate companion bill, Sen. Carrie Ruud (R-Breezy Point)?
Here's the Minnesota House Information Services YouTube of the hearing:
Session Daily's Brian Hall reports in State lawmakers consider seed money for growing plant-based food industry:
Plants or meat?
The question is becoming more prevalent for consumers at grocery stores and could become more of a question for Minnesota lawmakers.
The plant-based food industry has grown in recent years. Minnesota’s plentiful agriculture industry has taken part and could step forward in its commitment.
Sponsored by Rep. Dan Wolgamott (DFL-St. Cloud), HF2583, would appropriate $2 million in fiscal year 2023 to the Department of Agriculture to create a pilot plant-based food research and development grant program. It was laid over Monday by the House Agriculture Finance and Policy Committee.
The program has bipartisan support with Sen. Carrie Ruud (R-Breezy Point) sponsoring the companion, SF2483, which awaits action by the Senate Agriculture and Rural Development Finance and Policy Committee.
“We know that consumers are asking for this,” Wolgamott said. “By putting forth this pilot grant program, we’re going to make sure that it’s Minnesota and Minnesota companies, Minnesota jobs are being able to take advantage of this growing market demand rather than other states or other countries.”
The Agriculture Department would award competitive grants for plant protein processing innovations, plant-based food product formulation and other activities that accelerate the growth of commercialization of industry-advancing, plant-based food products.
According to Wolgamott, the plant-based foods market is a $7 billion industry in the United States. He said the industry is growing at twice the rate of overall food sales and has resulted in a creation of 55,000 jobs.
“Consumers are demanding plant-based foods to meet a variety of needs, whether dietary reasons or simply wanting more options for their families,” said Lauren Stone, acting policy coordinator for the Good Food Institute.
Noting the industry’s $7 billion total, Rep. John Burkel (R-Badger) wondered if Minnesota’s investment would make much impact.
“I think this bill is five years too late,” Burkel said. “I think the industry has moved well beyond the money you’re talking about.”
To be considered, grantees would be required to match the grant award with non-state funds. Stone said there would be no shortage of entities willing to participate.
Agriculture Commissioner Thom Petersen said there are current grants for similar research, but Wolgamott’s bill would enhance and specify the grants.
Rep. Dale Lueck (R-Aitkin) offered concern of the impact on Minnesota’s meat producers.
“This proposal would look to significantly tip the scales in favor of one particular element of our food production industry in Minnesota,” Lueck said. “I would much prefer to see this on a strictly competitive basis and not single out any special group. The market will take care of itself. I’ve got some serious, serious reservations with the approach of this bill.”
Rep. Ginny Klevorn (DFL-Plymouth) believes Minnesota should consider all potential agricultural systems.
“I think it’s important to understand that diversity, land diversity, product diversity, of choice, all of these things are really good,” Klevorn said. “There’s space for us to support the existing traditional agricultural system and there’s space to support new and emerging technologies.”
At Ag Week, Jeff Beach reported in Skeptic questions lack of testimony for plant-based food bill in Minnesota Legislature:
Lauren Stone of the Good Food Institute, who was the lone testifier on behalf of the bill, noted that there are processing facilities targeting the growing market for plant-based alternatives in Dawson, Plymouth and Appleton, Minnesota.The Appleton facility is a producer of a plant-based egg substitute.
"We want people to keep eating the meat they love and have more options," Stone said.
Rep. Dale Lueck, a Republican from Aitkin, questioned why Stone was alone in testifying for the bill and wondered why crop groups weren't represented. He also asked if there weren't already competitive grants available through the Minnesota Department of Agriculture for the plant-based industry.
Ag Commissioner Thom Petersen said they would be eligible for value-added and crop research grants.
"The bill would enhance those grants and be more specific," Petersen said.
Other questions from the House Agriculture Finance and Policy Committee included concerns about healthiness of processed plant-based food and competition with traditional livestock and the crops grown to feed farm animals.
Lueck said the bill would benefit "a very specific area that would certainly be direct competition for some of the same people in (Wolgamott's) own district that make a living right now in the poultry industry.”
Wolgamott said he has heard concerns about such competition but said, "we want to go with consumer demand."
Ginny Klevorn, a Democrat from Plymouth, said the discussion should not be about whether meat or a plant-based protein is better. "It's not an either or," she said. "There is space for both." . . .
Lueck's subsidies may be viewed here at the EWG's Farm Subsidies Database. Burkel, a turkey producer, does not appear to have received any federal subsidies.
At the Red River Farm Network, there's this news brief, Ag Committee Reviews Plant-Based Grant Proposal:
A bill creating a $2 million pilot grant program to develop a plant-based agriculture industry has been laid over by the Minnesota House Agriculture Committee. “Public research funded by this state will help ensure that this industry stays at home rather than moving overseas,” said Lauren Stone, acting policy director, Good Food Institute. “As the plant-based industry grows, research will help Minnesota businesses source high quality crops from local farmers.” State Representative John Burkel, who farms at Badger, said the plant-based food industry has moved beyond the need for this investment. “How do you see this $2 million moving the needle when Beyond Meat is the shortest stock in the stock market right now?” The House bill is sponsored by St. Cloud DFL Representative Dan Wolgamott. A companion bill sponsored by Breezy Point Republican Carrie Ruud is awaiting action in the Senate Agriculture Committee
We'll be watching for Lueck and Burkel to condemn other research or government intervention in the market for food.
Photo: Del Dee Foods was purchased in 2019 by a California company that uses plant protein to make an egg substitute. Plant protein had been a focus for the Appleton MN company for the decade before the purchase. Dan Gunderson | MPR News
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