Minnesota Report
Since agriculture has a significant influence on our state economy, nearly 15% and ranks 7th in the nation for agricultural productivity our state clearly relies on this economic sector. We asked Agriculture Commissioner Thom Peterson a series of questions and learned some unexpected pieces of information.
This interview was between the Commissioner and Publisher Shawn Towle. If you would prefer to listen to the interview click here.
C&B: Mr Commissioner, I understand you just got back from a trip to Washington DC, can you discuss the importance of USAID program to Minnesota’s farm community and the impact of its closing is having?
Commissioner Peterson: Well, I think that we’re still kind of learning, you know, about it, I’ve been familiar with the food aid part of it and the good pieces that it’s done over the years, but, to be honest, I didn’t know a lot about a lot of the details and we’re still kind of learning, some of the impacts of that. So for Minnesota, specifically is what we’re interested in is, some of the products that we may see that, would impact our farmers are, wheat, wheat purchases, edible beans, so things like kidney beans, things like that. Beans are really popular protein too, around the world, and so that’s a kind of a niche crop in Minnesota, but it’s really important that it, has really built that market over the years. So that’s been an interesting one. And then some dairy, products too as well. And so, again, we’re, still trying to sort that out too and everything, but you think about, there may be companies or co-ops in Minnesota that it may also be involved with purchases, that may be based here in Minnesota but may not be, impacting Minnesota so think like Cargillor Land O’ Lakes, things like that.
C&B: Well you mentioned wheat, and that only brings me back to thinking of Norman Borlaug, and things like that, the “Man Who Fed the World.”
Commissioner Peterson: Well, Norman Borlaug or even Orville Freeman, you know, I think that USAID was kind of born out of the Kennedy administration at that time. The Secretary of Agriculture, who was also very involved in a lot of this, was, Orville Freeman, you know, from Minnesota. And so, That was kind of the idea of Food for Peace, type initiatives and everything. So, you know, it’s very interesting and ties to Minnesota, for sure.
C&B: So what is your feeling of the general sentiment, of the Federal Agriculture Department toward Minnesota right now?
Commissioner Peterson: Well I think we’re kind of in a, you know, a hurry up and see, situation. I was able to one, of the first addresses the new USDA Secretary Brooke Rollins gave was to our association of commissioners yesterday, and she kind of really laid out the plan of, continuing to attack avian influenza, which really does impact Minnesota a lot just because we’re number one in turkey production and we’ve seen cases, and actually, some of the things that she rolled out are, are important. Like enhanced biosecurity, and then, looking at vaccines, there’s a lot to that too as well. But there are concerns right now, I’d say with the USDA because we do have some grants that are frozen, that we’re not able to access that impact Minnesota farms and businesses. And then the impact on, removal of probationary employees, a buyout program. Leaving, some of our, offices understaffed. And so that’s a concern because to be honest too, the farm economy is struggling right now some, and so it makes it difficult, to have some of these issues that we’re dealing with right now.
C&B: What about the impact on the farm loan system?
Commissioner Peterson: Well, that’ll be interesting to see. Originally, a lot of those, probationary farm loan officers had been, laid off, but then they were hired back. So I’d say here’s kind of some whiplash at the moment too. But, I, was, whoever got to them, including the department and maybe it was some of our congressional delegation that, We need those, you know, because we are seeing a lot of interest in loans. We do, loans with the department. One other thing, Shawn, I think is interesting is, farmer, lender mediation notices. So those are notices that go out to farmers, who are behind, you know, on whether it’s a tractor payment or uh other payments. In January of 2025, we had well over 300 notices sent to farmers. In January 24 was less than 50, so we’re seeing 67 times the amount of meditations. That tells us that the economy for farmers could be better. And so now is the time we want to be helping farmers, not making it further difficult for them.
C&B: Let’s talk a little politics here with this one. Do you think any of the feelings in Washington have anything to do with the fact Minnesota voted for the Harris/Walz ticket over the Trump/Vance ticket by mere 50.92%?
Commissioner Peterson: You know, not at the moment. I think Minnesota is actually in an interesting position in DC. I think that, there’s a lot of questions, the USDA needs the Farm Bill, farmers need the Farm Bill, and Minnesota is an interesting position be having, Amy Klobuchar is the ranking, Democrat in the Senate, and Angie Craig, having the ranking membership in the House. They’re gonna, they need Democratic votes to pass the farm bill and that’s expired and it’s on an extension right now. And so it was really interesting and actually kind of an honor at our, State Department’s Agriculture to have both of them come and talk and represent Minnesota, but also highlight the need that, again, you don’t just need Republican votes to do this, you’re going to need Democratic votes because there’s too many votes on the far right, they won’t vote for a Farm Bill. And so, it’s an interesting, kind of wait and see. The other thing I’d say right now too is I don’t know that, farmers will, see a direct impact on tariffs and office closings and everything, maybe for a few months yet. And so, I think there’s some of that too as well and so again we’re just had to wait and see a little bit.
C&B: With attention given to Democrats members of our delegation, are you hearing similar thoughts from the Republican members of Congress in our delegation?
Commissioner Peterson: You know, to be honest, our, we’ve had good luck, with Representative Finstead, in his office, as some of these ideas or things that we’ve had, we’ve been able to communicate with his office pretty good. And so I’d give an extra shout out to his office, and of course he’s in farm country, so I know that they, they’re hearing some of these concerns too as well, and we’ll keep working on the other offices, you know, I lean a lot on Tom Emmer’s office, being in leadership, but I think they’re gonna have to, figure out at some point, where they can be helpful in a lot of these different things.
C&B: Well, as you know I am interested in some innovative farming techniques, can you define in your assessment what the future of aquaponic aquaculture here in Minnesota is? And do you think, it has a potential benefit in the urban agriculture environment and in, other indoor growing opportunities?
Commissioner Peterson: Well, you’d be very interested to know that we actually, through the legislature request two years ago, we have a report on aquaculture coming out very soon. And so that, we’re hoping to be released. It’s in its final stages right now, and we hope to release that report very soon. And we do think there’s a lot of options. Aquaculture is not anything new or aquaponics, it’s been around a long time. We’ve seen a lot of different things. Some of the new things we’re seeing in Minnesota is actually shrimp farms, prawn farms, to be honest, the bait business is booming right now and we don’t have as many bait suppliers as we have. So, we have a walleye farm, coming online and so, a lot of interesting and innovative things, people in general, my take is are really interested in protein. And so whether that’s plant-based or beef or pork or fish, there’s a lot of opportunity right now for the protein market.
C&B: In the future, wouldn’t growing of food under glass in green Houses provide better food without herbicides and pesticides?
Commissioner Peterson: You know, we’ll see what happens with that. It’s been, you know, to be honest, kind of quiet at the moment on the USAID front, on the nations that have been impacted. I think that they’re still trying to sort out, some of the ships and deliveries were, slowed down, but those food aid pieces are moving now, and so we hope that those continue. But if you don’t have the staff and everything, I think that’s what we’re gonna have to wait and see. There’s some. Some of the workers have been held there and so they may, the food aid piece and the purchases may continue and maybe some of their programs that they may back off of. And so whether that’s helping farmers learn how to, you know, uh, irrigate or we, we have an issue, things where we send farmers over there, retired farmers to say Africa to help them learn different practices or do exchanges, things like that. We may see less of that, you know, too as well, but we’re kind of still working on it and evaluating it and seeing where it goes and where the court cases go that are surrounding it too as well.
Potentially, we’re already seeing that, Minnesota’s population is changing quite a bit and so we’re, seeing, a lot of whether that’s a growth in our Hmong farming population, or Latino farming population, and a lot of those folks are growing fruit and vegetables on a small, I say a small footprint, but it’s a large value crop. I always think it’s interesting when people will say, I can’t believe somebody farms on 2 acres or 3 acres, but they may have a high tunnel or greenhouse that has tens of thousands of dollars worth of tomato and vegetables on it. They may sell at a high piece, like a Minneapolis or Saint Paul Farmers’ Market have a big CSA, or a direct, marketing business. There’s a lot of really successful, fruit and vegetable pieces going on. There’s also you know, folks that are doing aquaponics or are raising fish and then using, the affluent and things to help with their greenhouse too as well so you’re seeing some of that innovative pieces too as well.
C&B: Well, and the last part of this and staying with this topic, you’re getting more yields throughout the year because we have a limited growing cycle. So, if you willing to extend the limited growth cycle why wouldn’t it be beneficial?
Commissioner Peterson: Right. And that’s what we’re glad to see, like a lot of, our, fruit and vegetable growers, being able to afford those, high tunnels, greenhouses where they can extend their growing season. Both on the front end and the back end, so it’s a really good thing.