1.1                          A bill for an act 
  1.2             relating to agriculture; changing the scope of the 
  1.3             value-added agricultural product processing and 
  1.4             marketing grant program; amending Minnesota Statutes 
  1.5             1998, section 17.101, subdivision 5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 17.101, 
  1.8   subdivision 5, is amended to read: 
  1.9      Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
  1.10  MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
  1.11     (1) "agricultural commodity" means a material produced for 
  1.12  use in or as food, feed, seed, or fiber and includes crops for 
  1.13  fiber, food, oilseeds, seeds, livestock, livestock products, 
  1.14  dairy, dairy products, poultry, poultry products, and other 
  1.15  products or by-products of the farm produced for the same or 
  1.16  similar use, except ethanol; and 
  1.17     (2) "agricultural product processing facility" means land, 
  1.18  buildings, structures, fixtures, and improvements located or to 
  1.19  be located in Minnesota and used or operated primarily for the 
  1.20  processing or production of marketable products from 
  1.21  agricultural commodities produced in Minnesota.  
  1.22     (b) The commissioner shall establish and implement a 
  1.23  value-added agricultural product processing and marketing grant 
  1.24  program to help farmers finance new cooperatives that organize 
  1.25  for the purposes of operating agricultural product processing 
  2.1   facilities and for marketing activities related to the sale and 
  2.2   distribution of processed agricultural products.  
  2.3      (c) To be eligible for this program a grantee must:  
  2.4      (1) be a cooperative organized under chapter 308A; 
  2.5      (2) certify that all of the control and equity in the 
  2.6   cooperative is from farmers as defined in section 500.24, 
  2.7   subdivision 2, who are actively engaged in agricultural 
  2.8   commodity production; 
  2.9      (3) be operated primarily for the processing of 
  2.10  agricultural commodities produced in Minnesota; 
  2.11     (4) receive agricultural commodities produced primarily by 
  2.12  shareholders or members of the cooperative; and 
  2.13     (5) have no direct or indirect involvement in the 
  2.14  production of agricultural commodities.  
  2.15     (d) The commissioner may receive applications from and make 
  2.16  grants up to $50,000 for feasibility, marketing 
  2.17  analysis, assistance with organizational development, financing 
  2.18  and managing new cooperatives, product development, development 
  2.19  of business and marketing plans, and predesign of 
  2.20  facilities including site analysis, development of bid 
  2.21  specifications, preliminary blueprints and schematics, and 
  2.22  completion of purchase agreements and other necessary legal 
  2.23  documents to eligible cooperatives.  The commissioner shall give 
  2.24  priority to applicants who use the grants for planning costs 
  2.25  related to an application for financial assistance from the 
  2.26  United States Department of Agriculture, Rural Business - 
  2.27  Cooperative Service.