1.1                          A bill for an act 
  1.2             relating to agriculture; establishing an advisory task 
  1.3             force on contract production to study the issue of 
  1.4             livestock, agricultural commodity, and specialty crops 
  1.5             produced under contract; requiring a report; 
  1.6             appropriating money. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [AGRICULTURAL PRODUCER CONTRACTS.] 
  1.9      Subdivision 1.  [PURPOSE; LEGISLATIVE FINDINGS.] The 
  1.10  legislature finds that continuing changes in the agricultural 
  1.11  livestock, commodity, and specialty crop industries have led to 
  1.12  an ever larger portion of Minnesota farmers who produce under 
  1.13  contract for processors.  To the extent that production under 
  1.14  contract, other than production for vegetable processors, 
  1.15  lessens competition and dulls important market signals, 
  1.16  independent producers are left at a critical economic 
  1.17  disadvantage.  The legislature finds further that the study and 
  1.18  recommendations authorized by this section will identify ways to 
  1.19  assure that competitive markets remain for producers who choose 
  1.20  not to produce under contract. 
  1.21     Subd. 2.  [CREATION; MEMBERSHIP.] (a) There is hereby 
  1.22  created a task force on contract farming with 20 members 
  1.23  appointed as follows: 
  1.24     (1) the chair of the agriculture and rural development 
  1.25  committee of the senate shall appoint one citizen member with 
  1.26  education and experience in the area of agricultural economics, 
  2.1   one citizen member who is the operator of a production 
  2.2   agriculture farm in the state, one processor of agricultural 
  2.3   livestock, and three members of the senate, at least one of whom 
  2.4   must be a member of the minority caucus; 
  2.5      (2) the chair of the agriculture committee of the house of 
  2.6   representatives shall appoint one citizen member with education 
  2.7   and experience in the area of agricultural economics, one 
  2.8   citizen member who is the operator of a production agriculture 
  2.9   farm in the state, one processor of agricultural commodities, 
  2.10  and three members of the house of representatives, at least one 
  2.11  of whom must be a member of the minority caucus; 
  2.12     (3) the governor shall appoint two members to represent 
  2.13  processors of agricultural livestock, commodities, or specialty 
  2.14  crops other than processors of vegetables; 
  2.15     (4) the governor shall appoint two members representing 
  2.16  different types of financial institutions or organizations of 
  2.17  financial institutions; 
  2.18     (5) the Minnesota farm bureau federation shall appoint one 
  2.19  member; 
  2.20     (6) the Minnesota farmers union shall appoint one member; 
  2.21     (7) the Minnesota cattlemen's association shall appoint one 
  2.22  member; and 
  2.23     (8) the Minnesota pork producers association shall appoint 
  2.24  one member. 
  2.25     (b) All appointments must be made June 15, 1999. 
  2.26     (c) Citizen members of the task force serve without 
  2.27  compensation but may be reimbursed for expenses as provided in 
  2.28  Minnesota Statutes, section 15.059, subdivision 6. 
  2.29     (d) The first meeting of the task force must be called and 
  2.30  convened by the chairs of the agriculture policy committees of 
  2.31  the senate and the house of representatives.  Task force members 
  2.32  must then elect a permanent chair from among the task force 
  2.33  members. 
  2.34     (e) The task force may organize itself into two or more 
  2.35  committees each concentrating on the issues most relevant to 
  2.36  particular types of producer contracts, such as livestock 
  3.1   contracts, commodity grain contracts, or specialty crop 
  3.2   contracts.  If committees of the task force are formed, they 
  3.3   must report their findings to the full task force. 
  3.4      Subd. 3.  [CHARGE.] The task force shall examine current 
  3.5   and projected impacts of livestock, agricultural commodity, and 
  3.6   specialty crops produced under contract with processors, other 
  3.7   than vegetable processors, and the effect of contract production 
  3.8   on the availability or distortion of valid market price 
  3.9   information and access to competitive markets for other 
  3.10  producers. 
  3.11     Subd. 4.  [RESOURCES; STAFF SUPPORT; CONTRACT 
  3.12  SERVICES.] The commissioner of agriculture shall provide 
  3.13  necessary resources and staff support for the meetings, 
  3.14  hearings, activities, and report of the task force.  To the 
  3.15  extent the task force determines it appropriate to contract with 
  3.16  nonstate providers for research or analytical services, the 
  3.17  commissioner shall serve as the fiscal agent for the task force. 
  3.18     Subd. 5.  [PUBLIC HEARINGS.] The task force shall hold at 
  3.19  least four public hearings on the issue of agricultural 
  3.20  production under contract, at least three of which must be held 
  3.21  in greater Minnesota. 
  3.22     Subd. 6.  [REPORT.] The task force shall report its 
  3.23  findings to the legislature by November 15, 1999.  The report 
  3.24  must include recommendations for law or rule changes that would 
  3.25  ensure competition and valid market price signals to both 
  3.26  contract producers and those who choose not to produce under 
  3.27  contract. 
  3.28     Subd. 7.  [EXPIRATION.] The task force on contract farming 
  3.29  expires 45 days after its report and recommendations are 
  3.30  delivered to the legislature or on June 1, 2000, whichever date 
  3.31  is earlier. 
  3.32     Sec. 2.  [APPROPRIATION; TASK FORCE ON CONTRACT 
  3.33  PRODUCTION.] 
  3.34     $25,000 is appropriated from the general fund to the 
  3.35  commissioner of agriculture for staff support and other expenses 
  3.36  of the task force on contract production under section 1.  Any 
  4.1   amount of this appropriation that remains unencumbered on July 
  4.2   1, 2000, reverts to the general fund. 
  4.3      Sec. 3.  [EFFECTIVE DATE.] 
  4.4      Section 1 is effective the day following final enactment.