Letter: A Minnesota climate superfund we can’t afford

Minnesota farmers operating in a globally priced industry with increasingly thin margins do not need additional input cost pressures. Yet legislators in St. Paul are poised to impose exactly that.

This week, a so-called “climate superfund” was introduced that would assign uncapped retroactive liability costs to energy producers in the name of funding “climate change adaptation” projects. Minnesota agriculture — whether corn, soybeans, sugar beets, dairy, hogs or poultry — would feel the ripple effects on multiple fronts.

Liability costs in the hundreds of billions will not simply disappear. They will be passed through to energy consumers, leaving farmers with higher fuel, fertilizer, propane and electricity bills. Producers cannot simply raise prices to offset higher inputs; commodity markets are global. If Minnesota farmers face higher costs, they will be undercut by lower-cost production in other states and overseas. No business can operate in the red, and farming is no exception. Minnesota farms will be lost.

Export competitiveness would suffer as well. Higher diesel prices mean higher on-farm trucking costs, increased rail freight rates, and more expensive river transport. In a state that depends heavily on moving agricultural products to national and international markets, localized cost increases erode already thin operating margins and weaken our position against lower-cost producers in neighboring states and abroad.

Minnesota ranks sixth in the nation in agricultural production and is the fourth-largest agricultural exporter in the country. Agriculture contributes nearly $106 billion annually to our economy and supports more than one in 10 jobs statewide. When policies threaten the viability of this sector, they do not simply impact farmers — they threaten the broader fiscal health of our state.

Consumers will also feel the effects. Rising energy costs show up at the pump, at the grocery store, and in monthly utility bills. While this “superfund” may be framed as targeting energy producers, the reality is that energy consumers ultimately bear the cost. Energy is not a luxury; it is foundational to food production, transportation, manufacturing and daily life. At a time when inflation has already strained household budgets, adding artificial cost pressures only compounds the burden.

Just as concerning is the precedent being set. Energy producers have operated legally under state regulations for decades. Retroactively redefining lawful activity as punishable creates uncertainty that extends far beyond one industry. If the rules can change after the fact, every sector of the economy — including agriculture — must question whether today’s compliant practices could become tomorrow’s liability.

Minnesota’s farmers feed our state and fuel our rural economies. Policymakers should be focused on strengthening their competitiveness and lowering energy costs, not advancing policies that make it harder to farm, invest and grow in Minnesota.

Deb Whalen is president of Minnesota Agri-women.