The committee amended and voted to advance Senate Bill 2342, a proposal to offer a state incentive to attract or expand dairy processing capacity in North Dakota.

Bill summary and amendment: The original draft described a post‑production incentive tied to milk “production.” Matt Perdue, speaking for the North Dakota Farmers Union, asked the committee to frame the incentive for dairy processing rather than raw milk production. Committee amendments replaced the word “production” with “processing,” changed a volume reference (originally expressed in gallons) to a processing metric (3,000,000 pounds), and removed a direct $10,000,000 appropriation from the bill. The amendment instead followed the model used in another package (potato processing language): if the Agricultural Development (AD) fund approves a grant for a qualifying dairy-processing project, the sponsor would submit a request to the next legislative session to satisfy any additional appropriations. That change aligned the bill’s mechanics with other AD‑fund grant proposals and removed an immediate $10 million appropriation from the text.

Sponsor and rationale: Matt Perdue said the measure is a ‘‘planting the flag’’ signal that North Dakota wants dairy processing and would offer up to $10 million in incentives after a facility reaches full projected processing capacity. Proponents noted North Dakota producers now ship milk long distances for processing and that in‑state processing capacity would reduce transportation costs and strengthen margins for dairy farmers.

Committee action: Senator Dwyer moved a motion for a due-pass recommendation on SB 2342 as amended; Senator Herbley seconded. The roll-call reflected affirmative votes from committee members present and the chairman announced the motion passed. The transcript records the amendment vote and the subsequent due-pass motion and passage in committee.

Why it matters: Testimony framed processing capacity as a key bottleneck: without local processing, producers face added transport costs; loss of in‑state processing has prompted some dairies to exit the business. Witnesses and industry advocates told the committee that an in‑state processor could shore up existing producers and incentivize new investment in the sector.

Ending: The committee approved a due-pass recommendation as amended. The amended bill removes an immediate appropriation and establishes a path for AD‑fund consideration followed by a legislative appropriation request if the AD fund approves a qualifying project.