AGP Executive Report

Critical Minerals & Manufacturing: Phoenix Tailings won a $66M U.S. Department of Energy grant to scale rare earth separation, partnering with MIT and the University of Minnesota to turn more domestic feedstocks into refined materials for defense, advanced manufacturing, and clean tech. Energy & Waste-to-Value: Groundbreaking in Litchfield will kick off a waste-to-renewable-energy project at Wagner Dairy, using anaerobic digestion to divert 300+ tons of organic waste daily and supply renewable energy to CenterPoint customers. Local Infrastructure: New Ulm City Council moved forward on a crosswind runway project at the municipal airport, lining up federal/state funding and annexation steps to support the runway realignment. Agri-Business Reshuffle: CHS plans to close or sell three grain elevator facilities in southeast Minnesota (Kasson, Ostrander, Wykoff) while continuing operations through the 2026 fall harvest. Public Health & Food Supply Risk: USDA confirmed a New World screwworm detection in a Texas calf, triggering a quarantine and rapid containment steps to protect the cattle industry. Healthcare Policy: Minnesota DHS completed a top-to-bottom review of nearly 5,600 high-risk Medicaid providers, disenrolling thousands and revalidating the rest. Transportation Planning: MnDOT will study two major intersection areas in 2026 near Cedar Mills/Dassel, with no funding or construction scheduled yet. Industrial Tech: Finout launched “Finout Agents,” a suite of AI agents aimed at detecting, investigating, and remediating cloud cost problems autonomously for enterprise FinOps teams.

Industrial Power & Data Centers: Google and Intersect broke ground on the Meitner Energy Center in Texas, a 1+ GW co-located data center and generation complex pairing wind/solar/batteries with on-site gas for reliability—another sign that power access is becoming a core siting factor for industrial growth. Minnesota Waterway Work: The U.S. Army Corps of Engineers is seeking public comments on a draft environmental assessment for an end-cell project at Lock and Dam 5 in Minnesota City, with construction targeted for late 2027–2028. Local Construction Impacts: Rochester’s St. Mary’s Hospital access is set to be limited starting Monday as Link Bus Rapid Transit construction closes 2nd St. SW at 14th Ave. SW through June 21, with traffic control plans for emergency routes. Agriculture Profit & Conservation: Minnesota Agricultural Water Quality Certification Program farms posted higher net income than non-certified operations for the seventh straight year, reinforcing conservation practices as a long-term profitability strategy. Farm Policy Pressure: At a House Agriculture hearing, Rep. Angie Craig pressed USDA Secretary Brooke Rollins on SNAP fraud and fertilizer affordability tied to the Iran conflict, highlighting how federal data and costs are colliding for Minnesota producers. Ethanol Policy Watch: ACE CEO Brian Jennings says E15 momentum after House passage is pushing Senate action, with exports and tax credit rules also on the agenda. Transportation & Labor Signals: U.S. jobless claims rose to the highest level since February, a reminder that hiring and layoffs remain sensitive to economic uncertainty.

Agriculture & Biosecurity: The U.S. confirmed the New World screwworm fly in a Texas calf for the first time in decades, triggering a quarantine and renewed risk for cattle and other warm-blooded animals—an expensive threat Minnesota producers will be watching closely. Energy & Industry Policy: Minnesota is among states weighing nuclear power to meet surging electricity demand from data centers, but critics warn ratepayers could get stuck with massive costs and long timelines. Construction & Local Planning: New Ulm approved a rezoning on N. Highland Avenue to allow up to 16 homes, while residents question whether planned intersection changes at Center/Garden will truly fix school-day congestion. Logistics & Supply Chains: A new U.S. logistics report shows strong expansion in May, but higher transportation, inventory, and warehousing costs are tightening pressure on supply chains. Public Health: FDA is investigating fresh foodborne illness outbreaks, including Listeria and Cyclospora, while it continues work on Salmonella linked to moringa supplements. Workforce & Trades: Rochester-area employers signed nine new carpenter apprentices, signaling continued demand for skilled construction labor. Business Finance: Celcuity priced an upsized convertible notes offering, adding to Minnesota’s growing biotech and capital-markets activity.

Fed Watch: The Fed’s Beige Book says the U.S. economy is still growing but looks “K-shaped,” with higher-income households holding up while middle- and low-income consumers squeeze budgets, cut discretionary trips, and lean on necessities. Food & Ag Costs: A new antitrust settlement bars Agri Stats from sharing sensitive data among competing meat processors, spotlighting how consolidation may be pushing up grocery prices. Minnesota Infrastructure: Gov. Walz announced Minnesota secured $1.058B in federal funding to replace the Blatnik Bridge, clearing the way for the biggest public works project in state history. Construction & Logistics: MnDOT starts an $18.8M I-94 resurfacing project near Evansville with one-lane, head-to-head traffic through October. Energy & Power Lines: Wisconsin lawmakers oppose a utilities push to pause competition for major transmission projects tied to the data center buildout. Manufacturing/Buildings: Skyline Windows names Doug Zacharias as Chief Commercial Officer, adding decades of commercial leadership in glazing and façade systems. Agronomy Reminder: Minnesota’s dicamba-tolerant soybean restrictions kick in during June for licensed applicators. Local Rail/Water: The Corps of Engineers seeks comments on proposed work at Lock and Dam 5, while Lexington and Blaine move toward resolving water-utility disputes.

Immigration & Security: Sen. Gary Peters says Senate Republicans blocked 57 amendments aimed at DHS reforms, accountability, and anti-corruption measures while advancing more ICE/CBP funding. Food & Retail: General Mills will sell its Häagen-Dazs ice-cream shops in mainland China to an investor group led by Ningji, while keeping retail/food-service sales. Retirement Policy: Michigan AG Dana Nessel joins a 24-state coalition opposing a Trump-era Labor Department proposal that would steer retirement plans toward riskier alternative assets. Public Works & Infrastructure: MnDOT’s long-term Highway 52/55/County Road 42 corridor study in Rosemount and Inver Grove Heights targets safety and traffic-flow fixes, with construction years away. Local Construction: Duluth begins Phase 1 of the $33M West Superior Street project, including storm sewer upgrades and road straightening. Housing & Development: A Marshall affordable housing plan is scaled back from 60 to 42 units as financing gaps grow. Education Facilities: Granite Falls breaks ground on a $74.4M remodel for Yellow Medicine East School District, replacing nearly century-old infrastructure. Workforce & Workplace Stress: A new look at Minnesota office life points to AI-driven pressure, reorganizations, and spillover stress from the Operation Metro Surge crackdown. Ag Safety: Grain bin entrapment training highlights how today’s much larger bins are changing rescue tactics. Energy/Industry Tech: Marketing Architects expands its Nielsen partnership to pair local measurement tools with national TV buying and forecasting. Sports & Business: The NBA Finals open Wednesday with the Knicks facing the Spurs in San Antonio, a reminder of how major events drive local attention and spending.

Manufacturing & Food Processing: SunOpta, headquartered in Eden Prairie, is investing $25M+ to expand its better-for-you fruit snacks line at its Omak, Washington plant, boosting capacity by 25% to meet rising demand. Agriculture & Transportation: The FMCSA granted a fertilizer hauling Hours of Service waiver for 34 states, letting drivers drive up to 16 hours in 24 with a required sleeper-berth break, aiming to ease supply squeezes. Hospitality & Labor Impact: A new North Star Policy Action analysis says Minnesota’s “Operation Metro Surge” cost the leisure and hospitality sector about 4,600 jobs and $71M in wages in early 2026. Public Housing & Development: Heritage Park in Minneapolis is in court receivership, with the city moving public dollars for life-safety issues while MPHA studies whether to sell or redevelop remaining parcels. Environment & Health: A study warns that much “recycled” plastic shipped overseas is burned openly, driving toxic air pollution linked to health problems. Ag Policy: Sen. Tina Smith urged completing a long-delayed farm bill, warning high costs and tight margins are raising stakes for Minnesota farmers. Corporate Moves: Winnebago Industries says CEO Michael Happe will join a Baird conference fireside chat June 3. Local Business: Ziggi’s Coffee is opening a new Redwood Falls drive-thru June 9, its third southern Minnesota franchise. Pest Control: Minnesota’s emerald ash borer quarantine expands to all of Kandiyohi County, adding movement limits for firewood and ash material.

Food Safety Alert: The Minnesota Department of Agriculture issued a consumer advisory for Milkjam Creamery products in Minneapolis after a routine inspection found possible metal fragments in specific ice cream and non-dairy frozen desserts (Black Non-Dairy Frozen Dessert lot 052662-26; Toasted Coconut lot 052763-27; Zahra and Ridin’ Duuuurty consumed in-store May 26–28). Small Business Relief: SBA reminded Minnesota businesses and private nonprofits that the June 30 deadline is coming for low-interest Economic Injury Disaster Loans tied to July 27–28, 2025 storms and flooding in Big Stone, Douglas, Grant, Pope, Stevens, Swift and Traverse. Mining/Manufacturing Finance: Mesabi Metallics agreed to sell 50% of its royalty interest for $265 million to The Metals Royalty Company, supporting growth for its Minnesota direct-reduction iron ore project expected to start production in Q3 2026. Energy/AI Hardware: YPlasma showcased a fanless solid-state cooling module for NVIDIA Jetson at COMPUTEX 2026, aiming at continuous edge AI workloads. Local Business & Infrastructure: Uptown’s Lyndale Avenue South redesign debate heated up as a $24 million plan could reshape parking and bike access, with business owners and bicyclists clashing over impacts. Sports Front Office: The Minnesota Vikings named Nolan Teasley as general manager, bringing 13 seasons of Seahawks experience.

Federal Funding Shake-Up: The Trump administration’s budget office says it’s canceling $1.5B in blue-state grants, including cuts tied to Minnesota, citing “waste and mismanagement” concerns. PFAS & Building Rules: HVACR regulators are flagging how PFAS “forever chemicals” rules and A2L refrigerant building codes keep evolving, with more state-level action expected. Flood Infrastructure: The U.S. Army Corps of Engineers awarded a $290,000 contract to repair erosion on the Redwood River levee near Marshall, with work aimed to finish by late 2026. Food Manufacturing: SunOpta (Eden Prairie) opened an expanded fruit-snack production line in Omak, Wash., investing $25M to boost capacity by 25%. Local Business Pressure: Downtown Rochester’s Mezza9 Cafe announced it’s closing June 30, blaming rising costs, high rent, and low foot traffic. Transportation Projects: MnDOT is shifting work on Highway 61 in Duluth (traffic control paused until June 22), closing Highway 75 near Kent starting June 8 for bridge repairs, and holding public meetings on Highway 52 culvert repairs from Chatfield to Fountain. Agriculture Trade: A new analysis argues USMCA remains a major driver for U.S. corn demand, pointing to 1.8B bushels tied to Mexico/Canada markets.

Airline M&A Watch: Minneapolis-based Castlelake says it’s in the early stages of considering a possible offer for easyJet, while easyJet calls the timing “highly opportunistic” and points to Middle East-driven fuel and demand pressure. Water Safety: Crow Wing County warns boaters and swimmers as cold lake temperatures contribute to drownings, including a recent fatal incident on Little Emily Lake. Agriculture Tech: Researchers use satellite imagery and machine learning to map long-term corn and soybean tillage trends across the Midwest, aiming to better track soil health and erosion impacts. Local Community Programs: Girls on the Run wraps an eight-week season with a regional 5K in Duluth, highlighting confidence-building for grades 3–8. Minnesota Environment: Minnesota’s DNR and local officials continue to flag risks and conditions tied to seasonal weather and waterways. Business/Policy: Minnesota’s contractor recovery process gets attention after a court-approved procedure for Rusco consumers to pursue claims tied to the state DLI fund.

Minnesota Politics: Kendall Qualls pulled off a major upset at Minnesota’s GOP governor endorsement convention, knocking House Speaker Lisa Demuth off the expected path after ballot disputes and a 10th-ballot finish in Duluth. PFAS & Water: Minnesota sued 3M again, alleging ongoing PFAS pollution in Mississippi River waters. Data Centers: A Goodhue County judge paused construction of a Google-backed Pine Island data center after a lawsuit challenged the environmental study as inadequate. Local Business Real Estate: Rochester cleared the way for a 7Brew Coffee drive-thru after buying a former bank building for $1.7 million, with construction targeted for later this year. Energy/Infrastructure Finance: Nisswa approved $3.645 million in road reconstruction bonds to fund street work and keep its debt levy steady. Ag & Farm Costs: Wheat futures fell as export sales showed cancellations, while Minnesota farmers face rising bankruptcies tied to higher costs and weaker crop economics. Workforce/Training: A “Growing Careers in Agriculture” program aims to strengthen the rural workforce across central Minnesota. Retail/Manufacturing: CJ Group’s chairman visited CJ Olive Young’s first U.S. offline store in Pasadena and also toured Schwan’s Minneapolis operations as the company expands in North America.

Data Centers & Local Control: A judge halted construction of Google’s Pine Island data center, while Minnesota cities like North Mankato weigh moratoriums as residents push back on power demand and public input. Food & Ag Networking: Greater Mankato brought food and agriculture leaders together to connect across production, supply chain, and services, aiming for new growth in the region. Farm Resilience: A father-son sugarbeet operation in Norman County was forced to replant about 70% after a wind storm tore up stands. Public Safety Barriers: Experts say stronger concrete/steel barriers at high-traffic sites can reduce both crash risk and attacks, after another vehicle incident at an airport terminal. Healthcare & Cybersecurity Costs: Cass County department heads flagged rising healthcare, facility, staffing, and cybersecurity needs heading into 2027. Environmental Fight: Manitoba eco groups warn Lake Winnipeg can’t absorb more phosphorus/nitrogen runoff from proposed mega dairy farms, even as legal challenges continue. Aerospace Talent: Brainerd’s Turner Person earned an Astronaut Scholar award and is set for a Houston internship with Intuitive Machines. Community & Business: CityArt is adapting North Mankato’s downtown construction disruptions with “CityArt in the Alley” to keep public art and local foot traffic moving.

Mining & Local Economy: The Iron Range Resources and Rehabilitation Board approved $300,000 in downtown redevelopment grant funding plus a $259,826 loan for Border Lakes Brewing’s $2M plan to repurpose Ely’s historic train depot, after lawmakers pressed for clarity on the owners’ views amid regional copper-nickel mining opposition. Education Funding: Iron Range lawmakers also approved one-time Taconite Economic Development Fund support for northeastern Minnesota schools, including $92,679 for Ely, citing rural enrollment declines and rising costs. Ag & Consumer Impact: A federal judge approved an $87.5M beef antitrust settlement involving Cargill and Tyson, with $55M from Tyson and $32.5M from Cargill for consumers who bought certain beef cuts from 2014-2019. Energy & Land: Pulsar Helium acquired about 1,360 acres of surface land near its Topaz project in Lake County for $2.48M, strengthening control as it advances toward helium production readiness. Public Works & Health: Marshall crews continue water and sewer line work after major intersection closures, while St. Paul’s recovery from last year’s ransomware attack highlights ongoing cybersecurity planning for city utilities. Community & Workforce: NEON’s new Collective Kitchens hub opened with shared and retail kitchens aimed at turning Northside food ideas into businesses, with dozens of operators already using the space.

Local Politics: Amy Klobuchar picked former Fergus Falls Mayor Ben Schierer as her running mate, aiming to strengthen support in greater Minnesota and rural economic development. Corporate Governance: ISS and Glass Lewis backed a “BLUE proxy” vote for Medallion Financial board nominees Eric Kelly and John Kiernan, while recommending shareholders withhold from incumbent leadership. Manufacturing & Industry: Donaldson Company raised its quarterly dividend 6.7%, signaling continued cash returns from the Minnesota-based filtration maker. Agriculture: Minnesota led the nation in Chapter 12 farm bankruptcies in Q1 2026, with economists pointing to falling crop prices and higher fuel, fertilizer, and operating costs. Construction & Infrastructure: MnDOT begins a new roundabout phase near Onamia, closing Highway 27 access at Highway 169 and routing drivers via County Road 23. Energy/Environment: Minnesota Pollution Control Agency commissioner flagged PFAS cleanup cost pressure on small towns, urging a stronger “polluter pays” model. Housing & Real Estate: Mankato planning commissioners advanced a Motel 6-to-affordable-housing plan for elderly and disabled residents. Ag Equipment/Forage: Dohrmann Enterprises expanded into hay preservatives as growers face tighter harvest windows. Finance/Regulation: Kalshi sued Minnesota over its prediction market criminalization law, arguing federal regulators have exclusive authority.

Federal Court Case: A Zimmerman kidnapping suspect, Joseph Andrew Bragg, faces new federal charges after an indictment unsealed this week: kidnapping and attempted transportation of a minor, plus production and possession of child pornography tied to different victims. Economy Watch: Moody’s Mark Zandi says the U.S. economy is “struggling,” with recession risk rising as inflation stays sticky and disruptions tied to the Iran conflict continue. Broadband & Tech: Mediacom says it has launched a 5-Gig residential tier (1,000 Mbps up) across parts of Minnesota and plans to expand to more homes by year-end. Health & Care: A Mayo Clinic-led study argues clinicians can borrow treatment approaches used for ME/CFS to help some long COVID patients. Local Infrastructure: New Ulm won $4 million in a state bonding bill to replace its last lift station with a gravity sewer system. Public Safety: Southwest Minnesota EMS rolled out telemedicine support for rural ambulances using federal funding. Agriculture & Research: University of Minnesota-linked work uses low-cost 3D-printed tools to study how bacteria travel along fungal “highways” in wheat and soil.

Healthcare Deal: Allina Health and Sutter Health cleared the next step toward a shared nonprofit system, aiming to expand access and accelerate digital care. Road & Infrastructure: Isanti County is moving forward with design work to reconstruct about a mile of CSAH 5 (Heritage Boulevard) to modernize aging pavement, drainage, and pedestrian access. Data Centers Under Fire: A Minnesota judge issued a temporary restraining order stopping construction on Pine Island’s Project Skyway data center while environmental review is challenged. Food & Manufacturing Workforce: Minneapolis’ NEON Collective Kitchens opened as a $22M shared-operations hub for food entrepreneurs, and Central Minnesota Jobs and Training Services launched a grant-funded agriculture careers program for rural workers. Packaging Innovation: H.B. Fuller invested in VerdaFresh oxygen barrier tech to support more recyclable packaging structures. Community & Industry Support: Graco’s centennial effort will put $1M into Minnesota nonprofits focused on workforce development and technical training. Agriculture Trade Watch: Minnesota soybean farmers are pressing for stronger China purchase commitments after renewed US-China agriculture pledges lacked details. Public Health: A beverage recall tied to possible Salmonella contamination reached Minnesota and 24 other states.

PFAS Legal Fight: Australia launched a record AU$2B lawsuit against Minnesota-based 3M over “forever chemical” contamination from firefighting foam used at 28 defense bases, with 3M saying it stopped sales in Australia decades ago and will fight the claim. Data Center Halt: A Goodhue County judge paused Google’s Pine Island “Project Skyway” hyperscale data center after Minnesota Center for Environmental Advocacy challenged the environmental review details; the project is pitched as power-hungry at a scale far beyond Rochester’s peak demand. Prediction Markets Clash: A bipartisan AG coalition led by Ohio’s Dave Yost urged the CFTC to reaffirm state jurisdiction over sports-related event contracts, arguing platforms like Polymarket and Kalshi function like sportsbooks. Local Safety for Industry: MnDOT warned drivers to watch for large farm equipment during planting season, citing 392 farm-equipment crashes in Minnesota from 2023-2025. Community Tech Talent: Eden Prairie High School students earned MnAiC Awards, highlighting Minnesota’s growing pipeline into computer science and engineering. Wildfire Relief Funding: IRRRB approved $350,000 for wildfire recovery in Brimson and the Stewart Trail Fire area.