ACTION ALERT: MDA’s Criteria for Livestock Investment Grants Skewed Against Family-Sized Farms

7/16/08
On July 1, the Minnesota Department of Agriculture (MDA) announced that grants are available to livestock producers who need help improving or expanding their operations. Members and staff of the Land Stewardship Project worked hard during the 2008 session of the Minnesota Legislature to get the “Livestock Investment Grants Program” established and to make sure it was family farmer friendly (for a complete summary of the 2008 legislative session, see www.landstewardshipproject.org/pdf/2008_legislative_wrap-up.pdf).

The House and Senate Conference Committee for Agriculture inserted a provision into the Livestock Investment Grants Program that gives the Minnesota Commissioner of Agriculture the authority to develop “competitive eligibility criteria” for the applications received. Using this authority, the MDA has developed an “evaluation profile” (www.mda.state.mn.us/grants/grants/ligevalprofile.htm) that uses a points system for rating grant applications.

LSP is concerned that the MDA’s criteria for evaluating applications are skewed towards larger operators and biased against small- and medium-sized family farms using sustainable production systems to maintain current environmental excellence. This was not the intention of the original legislation.

More points are awarded for applications that show the operation will be increasing livestock numbers. For example, if an operation’s livestock numbers are to be increased by 20 percent, they are given five points or an “outstanding” rating. A grant application that shows no change in livestock numbers is given one point and considered “unsatisfactory,” according to the MDA’s evaluation profile. This puts at a disadvantage any farmer using strategies other than expansion to improve an operation. Many farmers who graze livestock, for example, work to increase profitability by lowering inputs and increasing efficiency, not by expanding. Increasing livestock numbers can be the wrong strategy for some farmers and should not be given such a high priority in the scoring.

The more employees an operation adds, the more points it scores. Again, an operation that intends to add six or more employees receives five points and an “outstanding” rating. This also puts small- and medium-sized farmers at a disadvantage. There are other ways of increasing efficiencies and profitability without hiring more employees, but the MDA’s evaluation profile does not seem to recognize that.

Five points (again, an “outstanding” rating) are awarded for producing “substantial positive environmental impact.” This is presented in a way that suggests there must be measured improvement as opposed to maintaining existing excellence. LSP feels a grant proposal from a farmer who is currently farming in ways that enhance and protect the environment should receive an outstanding rating for improvements necessary to maintain that excellence.

A farm that is implementing an Environmental Quality Assurance plan receives a higher rating under the MDA’s evaluation profile. LSP believes that organically certified and Midwest Food Alliance certified farms should also score more points when applying for Livestock Investment Grants. Both certifications have rigorous environmental standards that farmers must meet.

The bottom line is, according to the MDA’s evaluation profile, that in general operations which expand dramatically are more likely to receive help through the Livestock Investment Grants program. These proposals will likely be the largest grant requests, thus quickly draining the program’s budget. This puts family farmers using innovative, low cost, low-input systems at a disadvantage. LSP has worked hard to make sure any Minnesota livestock improvement grant program would not discriminate against small- and moderate-sized family farms, including those that are using sustainable and organic systems. That is why LSP pushed for language in the bill that includes a low minimum investment amount ($4,000), and that recognizes systems such as pasture development as livestock operation improvements eligible for funding.

What you can do
LSP intends to send a letter to the chairs of the Minnesota House and Senate Agriculture Policy and Finance committees, as well as to committee members, expressing our concern with the criteria put in place by MDA.

In the meantime, we urge LSP farmer-members who are interested in improving their operations to apply for the grant and report to LSP’s Bobby King or Paul Sobocinski on their experience with the program. It is important to monitor how this important grants program is being implemented in the field and whether it is truly benefiting all types of livestock operations. Such monitoring could play a key role in making this program a valuable tool for family farm livestock operations, including those using sustainable and organic methods.

The grants deadline is Sept. 15, 2008. Any Minnesota livestock producer can apply for money to offset the costs of improving a livestock operation. Producers will be reimbursed 10 percent of the cost of a project, with a minimum expense of $4,000 and a maximum expense of $500,000.

The acquisition, construction or improvement of buildings or facilities for the production of livestock or livestock products.
The development of pasture for use by livestock including, but not limited to, the acquisition, development or improvement of:

Lanes used by livestock that connect pasture to a central location.
Watering systems for livestock on pasture, including water lines and booster pump well installations.
Livestock stream crossing stabilization.
Fences.

The acquisition of equipment for livestock housing, confinement, feeding and waste management.

After you apply for the grant, you can report your experience with the process to Bobby King at 612-722-6377 or bking@landstewardshipproject.org. Paul Sobocinski can be contacted at 507-342-2323 or sobopaul@redred.com.