[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6326814,"mediaKeyId","2323668-7250909a62a95071ec7a6665202597d0","parentId",2323668,"title","Upcycled sunflower protein project stalled by federal freeze; small processor and retail partners face cash and production risks","audioSeconds",658,"startMs",4657000,"endMs",5315000,"viewUrl","/Search/View?dp=1&key=2323668-7250909a62a95071ec7a6665202597d0&start=4657&end=5315","thumbnailUrl","https://assets.pipeline.soar.com/2323668-7250909a62a95071ec7a6665202597d0/thumbnail_4657000.jpg","articleUrl","/articles/6326814/Minnesota/Upcycled-sunflower-protein-project-stalled-by-federal-freeze-small-processor-and-retail-partners-face-cash-and-production-risks","mediaUrl","https://secure.pipeline.soar.com/6326814-a50f1cfa24906369a82cfb73476d5d0a/orig.mp4?Expires=1770548786&Signature=ZkqygMpytT9d0k4o1z8MrKVcDhToDDUFnfFP8FpcwAHT3SzwWom2-iGxsQjlLHSxfved4EMapo-jYseJTSlA2hGDH26oqLplLAqJzkD7bVnVG~JEXm4oDBcEMkwWV5RM3t0veBCAS8ACRpkb-bJs3ffOsfdVg0sxAfZgZmEABxK4cp6MWyy7vsJ1YSABcl5VkRVE3iE5rf8Fu59j3Cim92P1~G10TaIg3JXpWASdwohBQFrTMs5WLUmUn~umjAeK4Tmtu5akLnMZJY7N2aVxfqS0IeoafZrsluQpTHHHm4e5FpWrTtKWebnJIGGAmjW5JFEG-aJZmGqgCIgDuNCE9Q__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Senate Media Services","date","2025-02-17T00:00:00Z","article","Tom Smooty, a farmer and owner of Midwest Processors, told the committee that his RFSI grant award of $530,000 was structured as a reimbursement and that federal delays left his processing line torn out and production paused. \"This is a reimbursement grant. So we went out and got a loan or a temporary loan to cover everything,\" Smooty said. He told the committee he and his wife personally guaranteed roughly $250,000 of the project and that equipment has been ordered and partly received but the processing line is out of service while reimbursement is on hold.

Brady Barnstable, co‑founder of 7 Sundays, which uses the sunflower protein in a puffed cereal sold at major retailers, said the project enables contracts with large customers and that the delay threatens production schedules. \"Due to the unique nature of the supply chain, the fact that it's upcycled, we don't really have a plan B,\" Barnstable said, noting commitments to retailers and the need to process tens of thousands of pounds to meet orders.

Why it matters: The RFSI grant was intended to scale an on‑farm or local processing line that makes upcycled sunflower protein — a specialty ingredient used by small food companies and regional buyers. Because the award is reimbursement-based, Smooty said his business borrowed and put up personal collateral to pay vendors and temporarily stop production, creating acute cash‑flow pressure and risking missed retailer deadlines.

Additional operational disruption: Smooty also recounted a separate, short-term business shock: a cease-and-desist order related to grain‑buying licensing that briefly halted operations and required him to obtain a licensed grain buyer bond. He said the new compliance steps added an estimated $10,000 per year in licensing and auditing costs for his small business and required an immediate $200,000 short-term loan to cover lost revenue and payroll while operations restarted.

Committee response: Members asked whether the grant process or licensing rules could be adjusted to reduce risk for small processors. Senator Quebec foreshadowed a Wednesday bill to modify grain-buyer reporting and audit thresholds to ease burdens on small buyers; Smooty said an exemption or scaled requirement would help small processors who are not large commodity buyers.

Ending: Small processors and their retail partners asked lawmakers to press federal agencies to release funds and consider state-level supports for reimbursement‑based grants or to soften compliance costs that create acute cash‑flow strains for rapidly scaling local food businesses.","mediaType","Video","parentTitle","Committee on Agriculture, Veterans, Broadband and Rural Development - 02/17/25","oneSentenceSummary","Midwest Processors and cereal maker 7 Sundays told a Senate committee that a $530,000 RFSI reimbursement grant has been delayed, leaving the processor with equipment orders, loans, and production halted until funds or approvals resume.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6326818,"Freeze on local-food federal purchases leaves farmers and food banks owed money and cancelling orders",5294,1182000,6476000,"/Search/View?dp=1&key=2323668-7250909a62a95071ec7a6665202597d0&start=1182&end=6476","https://assets.pipeline.soar.com/2323668-7250909a62a95071ec7a6665202597d0/thumbnail_1182000.jpg","/articles/6326818/Minnesota/Freeze-on-local-food-federal-purchases-leaves-farmers-and-food-banks-owed-money-and-cancelling-orders","https://secure.pipeline.soar.com/6326818-b0a78d4c4ddd1ce4a603dccba8dd453f/orig.mp4?Expires=1770548786&Signature=dkesNO8hoPdaN7V8BRv3fTE08gFMZYtV7-3xUsFATFLgHQm3V6YdAHIWd9iDcXpPfMKzDVl42Y0XaR4fRzq0qYxK7YkivDveBDh-7hwEDHOvsLEkRPmP5qTpUgEWzqvAhR6UVkY2BQekkF39CJlvQ0b4vOgc0sFGHUM12ojeSKfR0HkL0EI-tb-U~dCKgIZ8InOyiUbq0i~omISYgo50cgbiNPZLwaKbRUOm9yvvgFrsOMJMaGMjcW0RXAwvoppUHTw0BBZ8dpZCjAzLhINXJUduy4JOgeBXjZSEqQ2DcMQaf~eunQWF~qriVvDuIBT-i-ThLb~49tahSIjsVzGsgA__&Key-Pair-Id=KUT5TJCACFTXG","Minnesota Department of Agriculture officials and multiple speakers from the farming and food‑security communities told a Senate committee that the federal pause on grant reimbursements has interrupted farmer contracts and food‑bank purchases. \"Currently, we have about 1.5 to $2,000,000 in payments to grantees that are on hold,\" Commissioner Tom Peterson said of the Local Food Purchase Assistance (LFPA) program.

Food banks and nonprofit partners said the freeze has immediate effects on supply and local purchases. Virginia Witherspoon, executive director of Channel One Regional Food Bank (a partner of Second Harvest Heartland), told the committee Channel One has a $125,000 LFPA grant with roughly $77,000 left that it cannot currently spend, and that it is owed $10,000 for chicken purchases it advanced to a small supplier. She said one Rochester-area nonprofit of farmers is owed $83,000 and has laid off half its staff. \"We had to immediately stop buying the chicken for the food shelf,\" Witherspoon said.

Direct-marketing farmers and small producers described canceled purchases and payment uncertainty. Hannah Bernhardt, a beginning diversified livestock farmer, said she had a Local Food Purchase Assistance sale scheduled for March that was canceled when funding froze and that she is now scrambling to find new buyers for beef already booked for processing. Bernhardt also said a Conservation Stewardship Program contract through NRCS is on hold, complicating spring planning.

Why it matters: LFPA and related programs create predictable market outlets for small and emerging farmers, support school meal and emergency-food programs, and provide protein and produce for food shelves. When reimbursements are delayed, small farmers lack the cash flow to invest in seed, feed, processing slots and staff, and food banks lose predictable suppliers of protein that they say low-income shoppers value.

Numbers and timing: Peterson said MDA applied for approximately $18 million (LFPA plus Local Food for Schools) and that state plans are due by April 30 for some programs. The department signed a contract in January 2025 but said federal actions are day to day. Several nonprofit witnesses told the committee they had made advance purchases or set processing dates and now face staff layoffs or canceled orders if funds are not reimbursed.

Ending: Witnesses urged state support and called for the federal delegation to press for release of funds. Committee members asked agency leaders about contingency options and whether the state should step in to stabilize contracts while federal reimbursements are pending.","Minnesota farmers and food banks told the Senate committee that the federal pause on Local Food Purchase Assistance and other USDA programs has left grants unreimbursed, purchases unpaid and processing and delivery plans in limbo.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6326823,"Minnesota to begin mandatory milk testing next week as H5N1 spreads; officials say testing helps isolate outbreaks",785,1909000,2694000,"/Search/View?dp=1&key=2323668-7250909a62a95071ec7a6665202597d0&start=1909&end=2694","https://assets.pipeline.soar.com/2323668-7250909a62a95071ec7a6665202597d0/thumbnail_1909000.jpg","/articles/6326823/Minnesota/Minnesota-to-begin-mandatory-milk-testing-next-week-as-H5N1-spreads-officials-say-testing-helps-isolate-outbreaks","https://secure.pipeline.soar.com/6326823-9fc1d50fbc2862c55ebf61b0a656b12d/orig.mp4?Expires=1770548786&Signature=lR-tYcM6sHzq2ILoo0s5h3xZZjhElIGJoyke2s7DclaRpj01xVwK8-G1dKjzY4CkNDrrV6LOJNAchxrG9-U9I1QiU2rdwX2F8QQFq-16HpKM8QcaxThrsYuwl00EbY2gTcpIINYulA6XbkX4uQCGjtN88MIqxs-E8PhQzDO4vZa1aP1sy01cwQvLNVkiHWlaeH2sKuUXlcRt0q1xfn6oP5VccHO8gYSpOfvSUom2KX3FmquwsBD1-MJhvQgOXwCp7gYlaz4Ej8VvkkMN-t~fZvUS~I3~M2YsF-bytio-hO-bvJSOu4kqpw6bA~g1xF5Ld8UdLwLOhyWLRGWkc6t9hA__&Key-Pair-Id=KUT5TJCACFTXG","Commissioner Tom Peterson told the Senate committee that Minnesota will begin mandatory milk testing for H5N1 the Monday after the Feb. 17 hearing and that the state will initially front costs and seek federal reimbursement. \"We're gonna be starting that on, on Monday, a week from today,\" Peterson said. He said the state had difficulty obtaining a timely cooperative agreement with USDA but expected reimbursement and planned to advance funds from the emergency account as needed.

Why it matters: Officials said early detection through farm-level testing can identify infected herds faster than testing only at processing plants, allowing case managers to work with producers to isolate cases, implement biosecurity and preserve pasteurized milk for sale. Peterson described Colorado’s experience, where widespread testing helped identify infections across dairy herds and allowed the state to contain and clear the virus within weeks.

Testing details and rationale: Peterson said the program will add an H5N1 test to the routine dairy samples already collected when milk is picked up, but samples will be tied to the originating farm so state officials can trace infections to specific herds. \"Instead of just like bacteria and stuff they'll be also adding this test to that,\" he said, noting there is no direct testing cost to farmers and pasteurized milk remains safe for consumption. He and Michelle Medina emphasized the testing’s role in protecting poultry, calves and farm workers by identifying infections early.

Scope, lab capacity and staffing: Michelle Medina and Peterson raised concerns about laboratory capacity at the University of Minnesota veterinary diagnostic lab and other national labs, and about recent USDA field staff layoffs reducing in‑state lab and field capacity. Peterson also highlighted Minnesota’s larger dairy herd size (about 1,700 farms) compared with Colorado’s roughly 100, saying the consequences of wide spread infection in Minnesota would be much larger.

Public health coordination: Peterson said the Minnesota Department of Health offers testing to farm workers when an animal case is identified and provides PPE supplies (goggles, masks, gloves) through stockpiles; he noted goggles are important because conjunctivitis has been observed in some human exposures.

Ending: Committee members asked whether the state would be able to manage testing and follow-up if federal agencies are reduced; Peterson replied that state plans rely on close daily coordination with the Department of Health and that response capacity will be adjusted to available staff and resources.","The Minnesota Department of Agriculture said it will begin a mandatory milk-testing program next Monday to detect H5N1 in dairy herds, citing Colorado and California examples where testing helped identify and contain outbreaks.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6326829,"Minnesota agriculture officials warn federal funding freeze threatens inspections, grants and emergency response",1193,1090000,2283000,"/Search/View?dp=1&key=2323668-7250909a62a95071ec7a6665202597d0&start=1090&end=2283","https://assets.pipeline.soar.com/2323668-7250909a62a95071ec7a6665202597d0/thumbnail_1090000.jpg","/articles/6326829/Minnesota/Minnesota-agriculture-officials-warn-federal-funding-freeze-threatens-inspections-grants-and-emergency-response","https://secure.pipeline.soar.com/6326829-ca961e2be37c8dc0b65f6b5ef1f600ab/orig.mp4?Expires=1770548786&Signature=nFhU84DHNm70SO6XePUT4el5CPN9VnBwqmypYYbAUMIUy~NzTa8UMw3Y-3WNIg~-cMJKmzeSxULl99BAFhAZsId18r5AsNvA-BlvopTE5220Zj~xfNvaEvaB8XfCoq6hCHJhHEdaDDhD8U~1k2VORBTOSOGmt9hgm27OpmZTByCAvkVZoLklvrQq4y~yigpbizHobXxg9AyrO8C6D~LzgdlaQmfRDw8IzyocwAwSt9AZX9op4KtGmYYwMurYIALaQBwX0jCAJsSo1f5mQ2-RrkD2L8YLkZ~8XkQctYhTkBHfbPzKBTHNqPGg4PqThymT1KcRoM1IfFtItJFmyjWGCg__&Key-Pair-Id=KUT5TJCACFTXG","Commissioner Tom Peterson of the Minnesota Department of Agriculture told a Senate committee on Feb. 17 that about 10% of the department’s nearly $400 million biennial budget comes from federal funds and that a recent freeze and federal personnel changes are creating “real concern” for inspection, grant and emergency programs. \"We are working with our congressional delegation,\" Peterson said. \"But the positions, you know, I will say are concerning, and we'll see how this plays out.\"

The department and the Minnesota Board of Animal Health described several programs affected or at risk, including meat and poultry inspection, laboratory grants, invasive pest control and grants tied to climate and conservation work. Michelle Medina, director of government relations for the Department of Agriculture and the Board of Animal Health, told the committee that roughly 70% of the board’s fiscal 2024 budget came from federal cooperative agreements with USDA APHIS and that cuts or delays would sharply reduce staffing and disease-response capabilities. \"If this funding was eliminated or reduced, the board would have a rather large budget deficit, particularly in staffing and diminished disease response capabilities,\" Medina said.

Why this matters: inspection and cooperative grants support plant operations, public and animal health surveillance, and rapid response to outbreaks. Peterson said cuts to inspection funding have already reduced the federal share of state inspection costs from roughly a 50% match to about 31%, which could reduce inspection hours at small, state-inspected plants. That would affect local locker plants, restaurants and direct-to-consumer sales that rely on state inspection capacity.

Most important facts first: Peterson said the Department of Agriculture is watching several specific federal programs. The Local Food Purchase Assistance (LFPA) program has about $1.5–$2 million in payments to grantees on hold. The department applied for roughly $18 million for LFPA and a related Local Food for Schools cooperative agreement. The Resilient Food Systems Infrastructure (RFSI) cooperative agreement funded multiple processing projects; Peterson said some contracts began moving again last week. A USDA-funded $15 million meat processing intermediate loan program and a $1.5 million grant to an oat-processing project were also discussed.

Inspection and labs: Peterson and Medina emphasized concern about meat and poultry inspection funding from USDA FSIS, which subsidizes roughly half of inspection costs historically but now covers a smaller share. Medina said the Board of Animal Health relies on cooperative agreements with USDA APHIS, field staff collaboration and shared veterinarians and technicians; she also highlighted pressure on veterinary diagnostic labs. Peterson said the department’s current cooperative agreement with USDA ends March 31 and he expects to work on signing a new agreement in Washington.

Emergency account and outbreak response: Peterson reviewed the state ag emergency account balance and said the fund has been drawn down over recent years. He described past use of federal CARES funds and other emergency appropriations to respond to large depopulations during 2020, and said the state may need to ask the legislature to act if a large outbreak or other emergency arises. Medina and Peterson noted federal staff layoffs and probationary-period dismissals have already reduced USDA field staff in Minnesota.

Other federal-funded programs at risk: Peterson cited the climate pollution reduction grant (roughly $9.8 million to the Department for the Ag Water Quality Certification Program), specialty crop grants, an anaerobic digestion nutrient recovery project (~$500,000), invasive pest control programs (spongy moth) and wolf depredation payments coordinated with U.S. Fish and Wildlife Service. Many of these are cooperative or reimbursement grants, and the department has paused some hiring and slowed payments while it assesses federal commitments.

Committee follow-up and next steps: Peterson and Medina said they are coordinating with the governor’s office and the federal delegation, are monitoring cooperative-agreement signings, and are evaluating whether to reallocate state funds to cover critical functions. Medina warned the committee that if federal reimbursements cease, the board and department would face budget deficits and potential staffing reductions that would affect disease response and inspections.

Ending: Committee members pressed agency leaders about contingency planning for inspections and disease outbreaks and suggested legislators consider bolstering state emergency accounts or other backstops while federal funding remains uncertain.","The Minnesota Department of Agriculture and Board of Animal Health told a Senate committee that recent federal funding freezes and personnel changes are disrupting grants, inspection programs and emergency response capacity, putting state programs and farmers at risk.","actionData","errors"]

Article not found

Upcycled sunflower protein project stalled by federal freeze; small processor and retail partners face cash and production risks

Freeze on local-food federal purchases leaves farmers and food banks owed money and cancelling orders

Minnesota to begin mandatory milk testing next week as H5N1 spreads; officials say testing helps isolate outbreaks

Minnesota agriculture officials warn federal funding freeze threatens inspections, grants and emergency response