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Bill Summary · HB 1185

Summary of HB 1185 (2026) – Indiana Department of Agriculture

Purpose and Intent

  • HB 1185 proposes changes to the Indiana Department of Agriculture’s program funds, renaming and realigning certain purposes and authority over fund usage.
  • The bill aims to broaden fundraising capacity for the Department by allowing the Agricultural Market Development Fund to accept grants, donations, and money from non-state sources.
  • It seeks to increase collaboration on mesonet (meteorological observation) site installation and maintenance with state and federal agencies and research institutions.

Key Provisions and Changes

  1. Renaming and Re-purposing a Fund

    • Renames the Value Added Research Fund to the Agricultural Market Development Fund.
    • Expands and clarifies the purposes for which money in this fund may be used, including:
      • Supporting the Center for Value Added Research and Agricultural Market Development.
      • Funding duties assigned to the fund director under applicable statutes.
      • Providing grants to support targeted agricultural market development initiatives.

  2. Fundraising and Donations

    • The Agricultural Market Development Fund may receive and use money from donations, grants, and other non-state sources.

  3. Mesonet Collaboration

    • The Division of Soil Conservation must collaborate with state and federal agencies and research institutions to install and maintain mesonet sites.
    • This supports data collection and modeling used for agricultural decision-making.

  4. Grant and Fund Use Flexibility for Grain Licensing Fees

    • The Grain Buyers and Warehouse Licensing Agency License Fee Fund may be used, with Budget Agency approval, to augment and supplement funding for implementing the Indiana Grain Buyers and Warehouse Licensing and Bonding law.
    • This authority currently expires after Fiscal Year 2026; the bill extends or formalizes the use of these funds for continued implementation, contingent on Budget Agency approval.

  5. Operational and Administrative Text Updates

    • Adds conforming edits and references to align statutes with the new fund names and purposes.
    • Keeps current responsibilities of the Division of Soil Conservation, including management of watersheds and collaboration on mesonet-related activities.

Who/What Would Be Affected

  • State Agencies: Indiana State Department of Agriculture (ISDA), Division of Soil Conservation, and the Grain Buyers and Warehouse Licensing Agency.
  • Funds:
    • Agricultural Market Development Fund (formerly Value Added Research Fund) gains broadened用途 and authority to receive private donations/grants.
    • Grain Buyers and Warehouse Licensing Agency License Fee Fund gains a potential expanded use, subject to Budget Agency approval.
  • Programs and Initiatives: Environmental stewardship, nutrient management and cost-sharing programs, GIS investments, invasive species management, and mesonet data collaboration.

Procedural and Timeline Aspects

  • Effective date: July 1, 2026.
  • Administrative approvals required: Use of the Grain Buyers and Warehouse Licensing Agency License Fee Fund to augment funding requires Budget Agency approval.
  • Legislative action history indicates committee passage and referral, with initial readings occurring in January 2026.

Fiscal and Impact Notes (as Shared in Analysis)

  • The bill could increase workload and expenditures for ISDA due to expanded fund purposes and private funding administration.
  • Mesonet collaboration may raise costs under the Clean Water Indiana Fund, depending on implementation and partnerships.
  • Potential for increased state revenue to the Agricultural Market Development Fund via donations/grants; private funding could support agricultural market development activities without expanding general fund expenditures.

Overall, HB 1185 modernizes funding tools for Indiana’s agricultural initiatives, broadening private funding participation and enhancing data-driven programs, with specific emphasis on market development, watershed and environmental efforts, and mesonet data collaboration.

Compiled from official sources — confirm details with the bill’s official record.

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