Representatives of the Minnesota Federation of County Fairs described how county agricultural societies use state AGRI grants and premium funds to maintain fairgrounds, support agricultural exhibits and reduce participation barriers for exhibitors.

Andrew Dewar told the committee county agricultural societies are quasi‑government entities formed under Minnesota chapter 38 and that all 87 counties have an ag society; some large counties operate multiple fairs. He explained two state streams the committee oversees: AGRI grants (about $1 million per year) that are distributed by the Minnesota Department of Agriculture for ag‑education projects and premium fund payments that help cover monetary awards tied to fair ribbons. Dewar described the premium fund formula in statute and noted the premium appropriation (statutory line) is limited and prorated when demand exceeds availability.

Chisago County Fair secretary Jen Penzenstadler gave examples of projects funded by AGRI grants — building and sidewalk repairs, hand‑washing stations, ventilation and livestock pen systems and a locally developed ag education center used for demonstrations and ag‑literacy outreach. Members asked whether fairs pay property taxes; Penzenstadler said arrangements vary by county and fair but that central examples include county ownership of fairgrounds or ownership by ag societies; committee staff offered to follow up with a summary of ownership and tax arrangements.

No committee action was taken during the hearing.