MN HF2881

Establishes a Working Lands Watershed Restoration Program administered by the Board of Water and Soil Resources in consultation with the Commissioner of Agriculture to incentivize establishment and maintenance of perennial crops on eligible agricultural land.

Eligible land must have been in agricultural use for annual crop production or enrolled in federal/state conservation programs for at least two of the last five years before application, and cannot currently be enrolled in another set-aside program.

Contract rates capped at no more than 90 percent of the most recent federal conservation reserve program payment for the county, with minimum 10-year contract duration; perennial crops may be used by biomass processing facilities or as livestock feed.

Allows the board to select up to two pilot watersheds with up to 100,000 total acres that have completed watershed restoration strategies, multiple water quality impairments, and access to viable biomass processing facilities.

Requires the Board of Water and Soil Resources to develop a detailed implementation plan by February 1, 2018, addressing watershed selection, eligible land assessment, landowner interest, contract terms, federal funding opportunities, and projected water quality improvements.

Appropriates $479,000 in fiscal year 2017 from the general fund to the Board of Water and Soil Resources, available until June 30, 2018.