Session Review: Agriculture
The Agriculture Committee considered measures this session to modernize the funding and structure of the Nebraska Brand Committee and to update regulation of the ethanol industry, grain warehouses and dealers, fertilizers, soil conditioners and noxious weeds.
Lawmakers passed LB1187, introduced by Niobrara Sen. Barry DeKay, which updates several Brand Committee fees, including raising the maximum per-head inspection fee from $1.10 to $1.50 and replacing mileage-based travel charges with a flat surcharge of up to $30 per inspection stop.
Among other provisions, the measure revises how feedlot fees are calculated, replacing the current flat structure with a formula based on inspection fees. Feedlots will pay an annual charge equal to 25% of the per-head inspection fee multiplied by a facility’s capacity. The bill also increases the statutory cap on the brand renewal fee, set by the committee, from $200 to $400.
The measure creates a classification for dairy heifer development facilities and exempts certain dairy-related cattle movements from inspection, such as transfers between development facilities and dairies.
In addition, LB1187 changes the Brand Committee’s membership. Beginning Aug. 28, the current five-member committee will be replaced by a seven-member group composed of five cattle producers — one from each newly created geographic district — along with a cattle feeding operation owner or operator and a livestock auction market owner.
The governor will appoint all members, and current members may be reappointed if they meet the new requirements.
LB1187 passed 39-9.
Senators also approved a measure that updates regulation of the state’s ethanol industry.
LB815, sponsored by Plymouth Sen. Tom Brandt and passed 35-14, expands the Nebraska Ethanol Board from seven to nine members and updates the board’s mission.
The measure eliminates outdated authorities, repeals obsolete provisions tied to expired incentive programs and defines an ethanol producer as an individual who spends at least 50% of their professional time on operational or business management activities at an ethanol production facility.
Additionally, LB815 adjusts fuel-related taxes tied to ethanol programs. Beginning Oct. 1, a quarter-cent per gallon excise tax will be imposed on dyed diesel used for off-road purposes. The first $140,000 collected each year will be directed to the Motor Fuel Tax Enforcement and Collection Cash Fund, with the remainder directed to the Agricultural Alcohol Fuel Tax Fund, which funds the ethanol board’s promotional activities.
The bill also removes a petroleum release remedial action fee on dyed diesel and shifts existing fees by removing one on dyed diesel while increasing the fee on clear diesel to 0.6 cents per gallon.
Lawmakers also expanded oversight of grain warehouses and dealers this session.
LB894, introduced by DeKay, eliminates an exemption that allowed certain warehouses to avoid classification as grain dealers when engaging in grain dealing activities if the grain involved in the transaction was first unloaded at their facilities.
The bill also replaces the current $100 annual grain dealer license fee and the annual grain warehouse license fee with fees established by the Nebraska Public Service Commission. Those fees are capped at $1,500 for the grain dealer license and an amount that does not exceed current federal license fees for grain warehouses.
Existing fees will remain in place until July 1, 2027, and the commission must submit a proposed fee schedule to the Legislature by Dec. 1.
License revenue will continue to be deposited in the state’s General Fund until July 1, 2027, after which it will be redirected to the newly created Grain Dealer and Grain Warehouse Cash Fund.
Among other provisions, LB894 also revises rules that allow grain producers to claim against a dealer’s security in the event of a gran dealer insolvency. The bill repeals statutory requirements that grain sellers meet certain payment demands and notice deadlines to preserve their right to seek payment for grain delivered but not paid for.
Included in the bill are provisions of DeKay’s LB895, which remove an exemption from licensure for federally licensed warehouses and instead provide that those warehouses automatically qualify for state licensure and are not subject to a state license fee. The measure also exempts federally licensed warehouses from bonding and regulatory filing fees other than those required under federal law.
LB894 passed on a 44-3 vote.
An omnibus bill modernizing regulatory language and updating certain fees relating to fertilizer and soil conditioners was approved this session.
LB948, introduced by the Agriculture Committee, renames the Nebraska Commercial Fertilizer and Soil Conditioners Act as the Nebraska Commercial Fertilizer and Beneficial Substances Act. It also incorporates beneficial substances — such as biostimulants that support a plant’s natural processes — as regulated products and revises fees collected under the act.
The bill adds a new registration fee of $50 per product to cover the state Department of Agriculture’s cost of reviewing product labels, increases the minimum tonnage inspection fee from $5 to $10 and increases an annual license fee for distributing fertilizers and beneficial substances from $15 to $25.
Finally, the measure includes provisions of LB947, also introduced by the committee, that:
• revise authority for license, inspection and certification fees under the Plant Protection and Plant Pest Act;
• repeal obsolete sections of state law relating to non-functioning agricultural organizations;
• update fees under the Nebraska Pesticide Act;
• amend the department’s duties relating to publishing and distributing the “Weeds of the Great Plains” book;
• repeal the Nebraska Poultry and Egg Act on Dec. 31, 2027; and
• terminate the Potato Development Cash Fund and direct residual funds to the Plant Protection and Plant Pest Cash Fund.
LB948 passed 35-10 and took effect immediately.
Finally, lawmakers voted 39-9 to approve a bill that creates a new grant source for noxious weed control programs in Nebraska.
LB807, sponsored by Sen. Teresa Ibach of Sumner, establishes riparian vegetation management projects as eligible for state aid grant assistance through the Water Resources Cash Fund, administered by the state Department of Water, Energy and Environment.
Administration of the Noxious Weed Control Act remains with the state Department of Agriculture.
Eligible grant fund uses include riparian vegetation removal to improve streamflow conveyance and related equipment purchases. Eligible recipients include natural resources districts, weed control authorities and other weed management entities.
Priority will be given to projects on streams subject to an interstate compact or decree.
