1.1                          A bill for an act 
  1.2             relating to agriculture; increasing the amount of 
  1.3             certain reimbursements; establishing a program and 
  1.4             changing eligibility and maximum loan amounts for 
  1.5             certain rural finance authority programs; 
  1.6             appropriating money for certain agricultural purposes; 
  1.7             appropriating money; memorializing the state of Iowa 
  1.8             to control swine pseudorabies; amending Minnesota 
  1.9             Statutes 1998, sections 17A.03, subdivision 5; 18E.04, 
  1.10            subdivision 4; 41A.09, subdivision 3a; 41B.03, 
  1.11            subdivisions 1 and 2; 41B.039, subdivision 2; 41B.04, 
  1.12            subdivision 8; 41B.042, subdivision 4; 41B.043, 
  1.13            subdivision 2; and 41B.045, subdivision 2; Laws 1999, 
  1.14            chapter 231, section 11, subdivision 3; proposing 
  1.15            coding for new law in Minnesota Statutes, chapter 41B. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1
  1.18                            AGRICULTURE 
  1.19     Section 1.  Minnesota Statutes 1998, section 17A.03, 
  1.20  subdivision 5, is amended to read: 
  1.21     Subd. 5.  [LIVESTOCK.] "Livestock" means cattle, sheep, 
  1.22  swine, horses intended for slaughter, mules, farmed cervidae, as 
  1.23  defined in section 17.451, subdivision 2, llamas, as defined in 
  1.24  section 17.455, subdivision 2, ratitae, as defined in section 
  1.25  17.453, subdivision 3, buffalo, and goats. 
  1.26     Sec. 2.  Minnesota Statutes 1998, section 18E.04, 
  1.27  subdivision 4, is amended to read: 
  1.28     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
  1.29  a person that is eligible for reimbursement or payment under 
  1.30  subdivisions 1, 2, and 3 from the agricultural chemical response 
  2.1   and reimbursement account for:  
  2.2      (1) 90 percent of the total reasonable and necessary 
  2.3   corrective action costs greater than $1,000 and less than or 
  2.4   equal to $100,000; and 
  2.5      (2) 100 percent of the total reasonable and necessary 
  2.6   corrective action costs greater than $100,000 but less than or 
  2.7   equal to $200,000; 
  2.8      (3) 80 percent of the total reasonable and necessary 
  2.9   corrective action costs greater than $200,000 but less than or 
  2.10  equal to $300,000; and 
  2.11     (4) 60 percent of the total reasonable and necessary 
  2.12  corrective action costs greater than $300,000 but less than or 
  2.13  equal to $350,000.  
  2.14     (b) A reimbursement or payment may not be made until the 
  2.15  board has determined that the costs are reasonable and are for a 
  2.16  reimbursement of the costs that were actually incurred. 
  2.17     (c) The board may make periodic payments or reimbursements 
  2.18  as corrective action costs are incurred upon receipt of invoices 
  2.19  for the corrective action costs. 
  2.20     (d) Money in the agricultural chemical response and 
  2.21  reimbursement account is appropriated to the commissioner to 
  2.22  make payments and reimbursements directed by the board under 
  2.23  this subdivision.  
  2.24     (e) The board may not make reimbursement greater than the 
  2.25  maximum allowed under paragraph (a) for all incidents on a 
  2.26  single site which: 
  2.27     (1) were not reported at the time of release but were 
  2.28  discovered and reported after July 1, 1989; and 
  2.29     (2) may have occurred prior to July 1, 1989, as determined 
  2.30  by the commissioner. 
  2.31     (f) The board may only reimburse an eligible person for 
  2.32  separate incidents within a single site if the commissioner 
  2.33  determines that each incident is completely separate and 
  2.34  distinct in respect of location within the single site or time 
  2.35  of occurrence. 
  2.36     Sec. 3.  Minnesota Statutes 1998, section 41A.09, 
  3.1   subdivision 3a, is amended to read: 
  3.2      Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
  3.3   shall make cash payments to producers of ethanol, anhydrous 
  3.4   alcohol, and wet alcohol located in the state.  These payments 
  3.5   shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
  3.6   fermented in the state and produced at plants that have begun 
  3.7   production by June 30, 2000.  For the purpose of this 
  3.8   subdivision, an entity that holds a controlling interest in more 
  3.9   than one ethanol plant is considered a single producer.  The 
  3.10  amount of the payment for each producer's annual production is: 
  3.11     (1) except as provided in paragraph (b), for each gallon of 
  3.12  ethanol or anhydrous alcohol produced on or before June 30, 
  3.13  2000, or ten years after the start of production, whichever is 
  3.14  later, 20 cents per gallon; and 
  3.15     (2) for each gallon produced of wet alcohol on or before 
  3.16  June 30, 2000, or ten years after the start of production, 
  3.17  whichever is later, a payment in cents per gallon calculated by 
  3.18  the formula "alcohol purity in percent divided by five," and 
  3.19  rounded to the nearest cent per gallon, but not less than 11 
  3.20  cents per gallon. 
  3.21     The producer payments for anhydrous alcohol and wet alcohol 
  3.22  under this section may be paid to either the original producer 
  3.23  of anhydrous alcohol or wet alcohol or the secondary processor, 
  3.24  at the option of the original producer, but not to both. 
  3.25     No payments shall be made for production that occurs after 
  3.26  June 30, 2010. 
  3.27     (b) If the level of production at an ethanol plant 
  3.28  increases due to an increase in the production capacity of the 
  3.29  plant and the increased production begins by June 30, 2000, the 
  3.30  payment under paragraph (a), clause (1), applies to the 
  3.31  additional increment of production until ten years after the 
  3.32  increased production began.  Once a plant's production capacity 
  3.33  reaches 15,000,000 gallons per year, no additional increment 
  3.34  will qualify for the payment. 
  3.35     (c) The commissioner shall make payments to producers of 
  3.36  ethanol or wet alcohol in the amount of 1.5 cents for each 
  4.1   kilowatt hour of electricity generated using closed-loop biomass 
  4.2   in a cogeneration facility at an ethanol plant located in the 
  4.3   state.  Payments under this paragraph shall be made only for 
  4.4   electricity generated at cogeneration facilities that begin 
  4.5   operation by June 30, 2000.  The payments apply to electricity 
  4.6   generated on or before the date ten years after the producer 
  4.7   first qualifies for payment under this paragraph.  Total 
  4.8   payments under this paragraph in any fiscal year may not exceed 
  4.9   $750,000.  For the purposes of this paragraph: 
  4.10     (1) "closed-loop biomass" means any organic material from a 
  4.11  plant that is planted for the purpose of being used to generate 
  4.12  electricity or for multiple purposes that include being used to 
  4.13  generate electricity; and 
  4.14     (2) "cogeneration" means the combined generation of: 
  4.15     (i) electrical or mechanical power; and 
  4.16     (ii) steam or forms of useful energy, such as heat, that 
  4.17  are used for industrial, commercial, heating, or cooling 
  4.18  purposes. 
  4.19     (d) Except for new production capacity approved under 
  4.20  paragraph (i), clause (1), the total Payments under paragraphs 
  4.21  (a) and (b) to all producers may not 
  4.22  exceed $34,000,000 $37,000,000 in a fiscal year.  Total payments 
  4.23  under paragraphs (a) and (b) to a producer in a fiscal year may 
  4.24  not exceed $3,000,000. 
  4.25     (e) By the last day of October, January, April, and July, 
  4.26  each producer shall file a claim for payment for ethanol, 
  4.27  anhydrous alcohol, and wet alcohol production during the 
  4.28  preceding three calendar months.  A producer with more than one 
  4.29  plant shall file a separate claim for each plant.  A producer 
  4.30  shall file a separate claim for the original production capacity 
  4.31  of each plant and for each additional increment of production 
  4.32  that qualifies under paragraph (b).  A producer that files a 
  4.33  claim under this subdivision shall include a statement of the 
  4.34  producer's total ethanol, anhydrous alcohol, and wet alcohol 
  4.35  production in Minnesota during the quarter covered by the claim, 
  4.36  including anhydrous alcohol and wet alcohol produced or received 
  5.1   from an outside source.  A producer shall file a separate claim 
  5.2   for any amount claimed under paragraph (c).  For each claim and 
  5.3   statement of total ethanol, anhydrous alcohol, and wet alcohol 
  5.4   production filed under this subdivision, the volume of ethanol, 
  5.5   anhydrous alcohol, and wet alcohol production or amounts of 
  5.6   electricity generated using closed-loop biomass must be examined 
  5.7   by an independent certified public accountant in accordance with 
  5.8   standards established by the American Institute of Certified 
  5.9   Public Accountants. 
  5.10     (f) Payments shall be made November 15, February 15, May 
  5.11  15, and August 15.  A separate payment shall be made for each 
  5.12  claim filed.  The Except as provided below, total quarterly 
  5.13  payment to a producer under this paragraph, excluding amounts 
  5.14  paid under paragraph (c), may not exceed $750,000.  Except for 
  5.15  new production capacity approved under paragraph (i), clause 
  5.16  (1), if the total amount for which all other producers are 
  5.17  eligible in a quarter under paragraphs (a) and (b) exceeds 
  5.18  $8,500,000, the commissioner shall make payments for production 
  5.19  capacity that is subject to this restriction in the order in 
  5.20  which the portion of production capacity covered by each claim 
  5.21  went into production.  Production in excess of eligible 
  5.22  quarterly production may be applied to quarters below eligible 
  5.23  capacity because of plant outages, repair, or major maintenance. 
  5.24  Payments must be made for the eighth quarter of the biennium 
  5.25  exempt from the $750,000 quarterly limit.  The fiscal year 
  5.26  limits under paragraph (d) remain in effect.  This provision 
  5.27  applies only to production shortfalls that occur in quarters 
  5.28  beginning after December 31, 1999. 
  5.29     (g) If the total amount for which all producers are 
  5.30  eligible in a quarter under paragraph (c) exceeds the amount 
  5.31  available for payments, the commissioner shall make payments in 
  5.32  the order in which the plants covered by the claims began 
  5.33  generating electricity using closed-loop biomass. 
  5.34     (h) After July 1, 1997, new production capacity is only 
  5.35  eligible for payment under this subdivision if the commissioner 
  5.36  receives: 
  6.1      (1) an application for approval of the new production 
  6.2   capacity; 
  6.3      (2) an appropriate letter of long-term financial commitment 
  6.4   for construction of the new production capacity; and 
  6.5      (3) copies of all necessary permits for construction of the 
  6.6   new production capacity. 
  6.7      The commissioner may approve new production capacity based 
  6.8   on the order in which the applications are received.  
  6.9      (i) After April 22, 1998, the commissioner may only 
  6.10  approve:  (1) up to 12,000,000 gallons of new production 
  6.11  capacity at one plant that has not previously received approval 
  6.12  or payment for any production capacity; or (2) new production 
  6.13  capacity at existing plants not to exceed planned expansions 
  6.14  reported to the commissioner by February 1997.  The commissioner 
  6.15  may not approve any new production capacity after July 1, 1998, 
  6.16  except that a producer approved for at least 12,000,000 gallons 
  6.17  but less than 15,000,000 gallons of annual production prior to 
  6.18  July 1, 1998, is approved for 15,000,000 gallons of production 
  6.19  capacity.  
  6.20     (j) For the purposes of this subdivision "new production 
  6.21  capacity" means annual ethanol production capacity that was not 
  6.22  allowed under a permit issued by the pollution control agency 
  6.23  prior to July 1, 1997, or for which construction did not begin 
  6.24  prior to July 1, 1997. 
  6.25     Sec. 4.  Minnesota Statutes 1998, section 41B.03, 
  6.26  subdivision 1, is amended to read: 
  6.27     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
  6.28  a program in sections 41B.01 to 41B.23: 
  6.29     (1) a borrower must be a resident of Minnesota or a 
  6.30  domestic family farm corporation, as defined in section 500.24, 
  6.31  subdivision 2; and 
  6.32     (2) the borrower or one of the borrowers must be the 
  6.33  principal operator of the farm or, for a prospective homestead 
  6.34  redemption borrower, must have at one time been the principal 
  6.35  operator of a farm; and 
  6.36     (3) the borrower must not receive assistance under sections 
  7.1   41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans 
  7.2   during the borrower's lifetime. 
  7.3      Sec. 5.  Minnesota Statutes 1998, section 41B.03, 
  7.4   subdivision 2, is amended to read: 
  7.5      Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
  7.6   to the eligibility requirements of subdivision 1, a prospective 
  7.7   borrower for a restructured loan must:  
  7.8      (1) have received at least 50 percent of average annual 
  7.9   gross income from farming for the past three years or, for 
  7.10  homesteaded property, received at least 40 percent of average 
  7.11  gross income from farming in the past three years, and farming 
  7.12  must be the principal occupation of the borrower; 
  7.13     (2) have a debt-to-asset ratio equal to or greater than 50 
  7.14  percent and in determining this ratio, the assets must be valued 
  7.15  at their current market value; 
  7.16     (3) have projected annual expenses, including operating 
  7.17  expenses, family living, and interest expenses after the 
  7.18  restructuring, that do not exceed 95 percent of the borrower's 
  7.19  projected annual income considering prior production history and 
  7.20  projected prices for farm production, except that the authority 
  7.21  may reduce the 95 percent requirement if it finds that other 
  7.22  significant factors in the loan application support the making 
  7.23  of the loan; and 
  7.24     (4) demonstrate substantial difficulty in meeting projected 
  7.25  annual expenses without restructuring the loan; and 
  7.26     (5) must have a total net worth, including assets and 
  7.27  liabilities of the borrower's spouse and dependents, of less 
  7.28  than $400,000 in 1999 and an amount in subsequent years which is 
  7.29  adjusted for inflation by multiplying $400,000 by the cumulative 
  7.30  inflation rate as determined by the United States All-Items 
  7.31  Consumer Price Index. 
  7.32     Sec. 6.  Minnesota Statutes 1998, section 41B.039, 
  7.33  subdivision 2, is amended to read: 
  7.34     Subd. 2.  [STATE PARTICIPATION.] The state may participate 
  7.35  in a new real estate loan with an eligible lender to a beginning 
  7.36  farmer to the extent of 45 percent of the principal amount of 
  8.1   the loan or $100,000 $125,000, whichever is less.  The interest 
  8.2   rates and repayment terms of the authority's participation 
  8.3   interest may be different than the interest rates and repayment 
  8.4   terms of the lender's retained portion of the loan. 
  8.5      Sec. 7.  Minnesota Statutes 1998, section 41B.04, 
  8.6   subdivision 8, is amended to read: 
  8.7      Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
  8.8   that are eligible for restructuring under sections 41B.01 to 
  8.9   41B.23 and upon acceptance by the authority, the authority shall 
  8.10  enter into a participation agreement or other financial 
  8.11  arrangement whereby it shall participate in a restructured loan 
  8.12  to the extent of 45 percent of the primary principal or 
  8.13  $100,000 $150,000, whichever is less.  The authority's portion 
  8.14  of the loan must be protected during the authority's 
  8.15  participation by the first mortgage held by the eligible lender 
  8.16  to the extent of its participation in the loan. 
  8.17     Sec. 8.  Minnesota Statutes 1998, section 41B.042, 
  8.18  subdivision 4, is amended to read: 
  8.19     Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
  8.20  may participate in new seller-sponsored loans to the extent of 
  8.21  45 percent of the principal amount of the loan or 
  8.22  $100,000 $125,000, whichever is less.  The interest rates and 
  8.23  repayment terms of the authority's participation interest may be 
  8.24  different than the interest rates and repayment terms of the 
  8.25  seller's retained portion of the loan. 
  8.26     Sec. 9.  Minnesota Statutes 1998, section 41B.043, 
  8.27  subdivision 2, is amended to read: 
  8.28     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
  8.29  $35,000 or $100,000 $125,000 for a loan participation or be made 
  8.30  to refinance an existing debt.  Each direct loan and 
  8.31  participation must be secured by a mortgage on real property and 
  8.32  such other security as the authority may require. 
  8.33     Sec. 10.  Minnesota Statutes 1998, section 41B.045, 
  8.34  subdivision 2, is amended to read: 
  8.35     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
  8.36  participate in a livestock expansion loan with an eligible 
  9.1   lender to a livestock farmer who meets the requirements of 
  9.2   section 41B.03, subdivision 1, clauses (1) and (2), and who are 
  9.3   actively engaged in a livestock operation.  A prospective 
  9.4   borrower must have a total net worth, including assets and 
  9.5   liabilities of the borrower's spouse and dependents, of less 
  9.6   than $400,000 in 1999 and an amount in subsequent years which is 
  9.7   adjusted for inflation by multiplying $400,000 by the cumulative 
  9.8   inflation rate as determined by the United States All-Items 
  9.9   Consumer Price Index. 
  9.10     Participation is limited to 45 percent of the principal 
  9.11  amount of the loan or $250,000, whichever is less.  The interest 
  9.12  rates and repayment terms of the authority's participation 
  9.13  interest may be different from the interest rates and repayment 
  9.14  terms of the lender's retained portion of the loan.  Loans under 
  9.15  this program must not be included in the lifetime limitation 
  9.16  calculated under section 41B.03, subdivision 1. 
  9.17     Sec. 11.  [41B.048] [AGROFORESTRY LOAN PROGRAM.] 
  9.18     Subdivision 1.  [PURPOSE.] The purpose of the agroforestry 
  9.19  loan program is to provide low interest financing to farmers 
  9.20  during the growing period required to convert agricultural land 
  9.21  to agroforestry. 
  9.22     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
  9.23  and implement an agroforestry loan program to help finance the 
  9.24  production of short rotation woody crops.  The authority may 
  9.25  contract with a fiscal agent to provide an efficient delivery 
  9.26  system for this program. 
  9.27     Subd. 3.  [RULES.] The authority may adopt rules necessary 
  9.28  for administration of the program established under subdivision 
  9.29  2. 
  9.30     Subd. 4.  [DEFINITIONS.] (a) The definitions in this 
  9.31  subdivision apply to this section. 
  9.32     (b) "Fiscal agent" means any lending institution or other 
  9.33  organization of a for-profit or nonprofit nature that is in good 
  9.34  standing with the state of Minnesota that has the appropriate 
  9.35  business structure and trained personnel suitable to providing 
  9.36  efficient disbursement of loan funds and the servicing and 
 10.1   collection of loans over an extended period of time. 
 10.2      (c) "Growing cycle" means the number of years from planting 
 10.3   to harvest. 
 10.4      (d) "Harvest" means the day that the crop arrives at the 
 10.5   scale of the buyer of the crop. 
 10.6      (e) "Short rotation woody crops" or "crop" means hybrid 
 10.7   poplar and other woody plants that are harvested for their fiber 
 10.8   within 15 years of planting. 
 10.9      Subd. 5.  [ELIGIBILITY.] To be eligible for this program a 
 10.10  borrower must: 
 10.11     (1) be a resident of Minnesota or any entity eligible to 
 10.12  own farm land under section 500.24; 
 10.13     (2) be or plan to become a grower of short rotation woody 
 10.14  crops on agricultural land that is suitable for the profitable 
 10.15  production of short rotation woody crops; 
 10.16     (3) be a member of a producer-owned cooperative that will 
 10.17  contract to market the short rotation woody crop to be planted 
 10.18  by the borrower; 
 10.19     (4) demonstrate an ability to repay the loan; 
 10.20     (5) not receive assistance under this program for more than 
 10.21  $150,000 in the producer's lifetime; 
 10.22     (6) agree to work with appropriate local, state, and 
 10.23  federal agencies, and the marketing cooperative, to develop an 
 10.24  acceptable establishment and maintenance plan; and 
 10.25     (7) meet any other requirements the authority may impose by 
 10.26  administrative procedure or by rule. 
 10.27     Subd. 6.  [LOANS.] (a) The authority may disburse loans 
 10.28  through a fiscal agent to farmers and agricultural landowners 
 10.29  who are eligible under subdivision 5.  The total accumulative 
 10.30  loan principal must not exceed $75,000 per loan. 
 10.31     (b) The fiscal agent may impose a loan origination fee in 
 10.32  the amount of one percent of the total approved loan.  This fee 
 10.33  is to be paid by the borrower to the fiscal agent at the time of 
 10.34  loan closing. 
 10.35     (c) The loan may be disbursed over a period not to exceed 
 10.36  12 years. 
 11.1      (d) A borrower may receive loans, depending on the 
 11.2   availability of funds, for planted areas up to 160 acres for up 
 11.3   to: 
 11.4      (1) the total amount necessary for establishment of the 
 11.5   crop; 
 11.6      (2) the total amount of maintenance costs, including weed 
 11.7   control, during the first three years; and 
 11.8      (3) 70 percent of the estimated value of one year's growth 
 11.9   of the crop for years four through 12. 
 11.10     (e) Security for the loan must be the crop, a personal note 
 11.11  executed by the borrower, an interest in the land upon which the 
 11.12  crop is growing, and whatever other security is required by the 
 11.13  fiscal agent or the authority.  All recording fees must be paid 
 11.14  by the borrower. 
 11.15     (f) The authority may prescribe forms and establish an 
 11.16  application process for applicants to apply for a loan. 
 11.17     (g) The authority may impose a reasonable nonrefundable 
 11.18  application fee for each application for a loan under this 
 11.19  program.  The application fee is initially $50.  Application 
 11.20  fees received by the authority must be deposited in the 
 11.21  agroforestry loan program revolving fund established in 
 11.22  subdivision 7. 
 11.23     (h) Loans under the program must be made using money in the 
 11.24  agroforestry loan program revolving fund established in 
 11.25  subdivision 7. 
 11.26     (i) The interest payable on loans made by the authority for 
 11.27  the agroforestry loan program must, if funded by revenue bond 
 11.28  proceeds, be at a rate not less than the rate on the revenue 
 11.29  bonds, and may be established at a higher rate necessary to pay 
 11.30  costs associated with the issuance of the revenue bonds and a 
 11.31  proportionate share of the cost of administering the program.  
 11.32  The interest payable on loans for the agroforestry loan program 
 11.33  funded from sources other than revenue bond proceeds must be at 
 11.34  a rate determined by the authority. 
 11.35     (j) Loan principal balance outstanding plus all assessed 
 11.36  interest must be repaid within 120 days of harvest, but no later 
 12.1   than 15 years from planting. 
 12.2      Subd. 7.  [REVOLVING FUND.] There is established in the 
 12.3   state treasury an agroforestry loan program revolving fund that 
 12.4   is eligible to receive appropriations or the proceeds of bond 
 12.5   sales.  All repayments of financial assistance granted under 
 12.6   subdivision 2, including principal and interest, must be 
 12.7   deposited into this fund.  Interest earned on money in the fund 
 12.8   accrues to the fund, and money in the fund is appropriated to 
 12.9   the commissioner for purposes of the agroforestry loan program, 
 12.10  including costs incurred by the authority to establish and 
 12.11  administer the program. 
 12.12     Subd. 8.  [REVENUE BONDS.] The authority may issue revenue 
 12.13  bonds to finance the agroforestry loan program in accordance 
 12.14  with sections 41B.08 to 41B.15, 41B.17, and 41B.18.  Bonds may 
 12.15  be refunded by the issuance of refunding bonds in the manner 
 12.16  authorized by chapter 475.  
 12.17     Sec. 12.  Laws 1999, chapter 231, section 11, subdivision 
 12.18  3, is amended to read: 
 12.19  Subd. 3.  Agricultural Marketing and Development
 12.20        6,521,000      5,410,000
 12.21  Notwithstanding Minnesota Statutes, 
 12.22  section 41A.09, subdivision 3a, the 
 12.23  total payments from the ethanol 
 12.24  development account to all producers 
 12.25  may not exceed $68,447,000 $70,658,000 
 12.26  for the biennium ending June 30, 2001.  
 12.27  If, prior to the end of the biennium, 
 12.28  the total amount for which all 
 12.29  producers are eligible in a quarter 
 12.30  exceeds the amount available for 
 12.31  payments remaining in the 
 12.32  appropriation, the commissioner shall 
 12.33  make the payments for the quarter in 
 12.34  which the shortfall occurs on a pro 
 12.35  rata basis.  In fiscal year 2000, the 
 12.36  commissioner shall first reimburse 
 12.37  producers for eligible unpaid claims 
 12.38  accumulated through June 30, 1999.  
 12.39  $500,000 the first year is appropriated 
 12.40  to the rural finance authority for 
 12.41  making a loan under Minnesota Statutes, 
 12.42  section 41B.044.  Principal and 
 12.43  interest payments on the loan must be 
 12.44  deposited in the ethanol development 
 12.45  account for producer payments under 
 12.46  Minnesota Statutes, section 
 12.47  41B.09 general fund. 
 12.48  By July 15, 1999, the commissioner 
 12.49  shall transfer the unencumbered cash 
 13.1   balance in the ethanol development fund 
 13.2   established in Minnesota Statutes, 
 13.3   section 41B.044, to the general fund. 
 13.4   $200,000 the first year is for a grant 
 13.5   from the commissioner to the Minnesota 
 13.6   Turkey Growers Association for 
 13.7   assistance to an entity that constructs 
 13.8   a facility that uses poultry litter as 
 13.9   a fuel for the generation of 
 13.10  electricity.  This amount must be 
 13.11  matched by $1 of nonstate money for 
 13.12  each dollar of state money.  This is a 
 13.13  one-time appropriation. 
 13.14  $50,000 the first year is for the 
 13.15  commissioner, in consultation with the 
 13.16  commissioner of economic development, 
 13.17  to conduct a study of the need for a 
 13.18  commercial shipping port at which 
 13.19  agricultural cooperatives or individual 
 13.20  farmers would have access to port 
 13.21  facilities.  This is a one-time 
 13.22  appropriation.  
 13.23  $71,000 the first year and $71,000 the 
 13.24  second year are for transfer to the 
 13.25  Minnesota grown matching account and 
 13.26  may be used as grants for Minnesota 
 13.27  grown promotion under Minnesota 
 13.28  Statutes, section 17.109. 
 13.29  $100,000 the first year is for a grant 
 13.30  to the University of Minnesota 
 13.31  extension service for its farm safety 
 13.32  and health program.  This is a one-time 
 13.33  appropriation. 
 13.34  $225,000 the first year and $75,000 the 
 13.35  second year are for grants to the 
 13.36  Minnesota agricultural education 
 13.37  leadership council for the planning and 
 13.38  implementation of initiatives enhancing 
 13.39  and expanding agricultural education in 
 13.40  rural and urban areas of the state.  
 13.41  Funds not used in the first year are 
 13.42  available for the second year.  This is 
 13.43  a one-time appropriation.  
 13.44  $480,000 the first year and $420,000 
 13.45  the second year are to the commissioner 
 13.46  of agriculture for programs to 
 13.47  aggressively promote, develop, expand, 
 13.48  and enhance the marketing of 
 13.49  agricultural products from Minnesota 
 13.50  producers and processors.  The 
 13.51  commissioner must enter into 
 13.52  collaborative efforts with the 
 13.53  department of trade and economic 
 13.54  development, the world trade center 
 13.55  corporation, and other public or 
 13.56  private entities knowledgeable in 
 13.57  market identification and development.  
 13.58  The commissioner may also contract with 
 13.59  or make grants to public or private 
 13.60  organizations involved in efforts to 
 13.61  enhance communication between producers 
 13.62  and markets and organizations that 
 13.63  identify, develop, and promote the 
 13.64  marketing of Minnesota agricultural 
 13.65  crops, livestock, and produce in local, 
 14.1   regional, national, and international 
 14.2   marketplaces.  Grants may be provided 
 14.3   to appropriate organizations including 
 14.4   those functioning as marketing clubs, 
 14.5   to a cooperative known as Minnesota 
 14.6   Marketplace, and to recognized 
 14.7   associations of producers or processors 
 14.8   of organic foods or Minnesota grown 
 14.9   specialty crops.  Beginning October 15, 
 14.10  1999, and 15 days after the close of 
 14.11  each calendar quarter thereafter, the 
 14.12  commissioner shall provide to the 
 14.13  senate and house committees with 
 14.14  jurisdiction over agriculture policy 
 14.15  and funding interim reports of the 
 14.16  progress toward accomplishing the goals 
 14.17  of this item.  The commissioner shall 
 14.18  deliver a final report on March 1, 
 14.19  2001.  If the appropriation for either 
 14.20  year is insufficient, the appropriation 
 14.21  for the other year is available.  This 
 14.22  is a one-time appropriation that 
 14.23  remains available until expended. 
 14.24  $60,000 the second year is for grants 
 14.25  to farmers for demonstration projects 
 14.26  involving sustainable agriculture.  If 
 14.27  a project cost is more than $25,000, 
 14.28  the amount above $25,000 must be 
 14.29  matched at the rate of one state dollar 
 14.30  for each dollar of nonstate money.  
 14.31  Priorities must be given for projects 
 14.32  involving multiple parties.  Up to 
 14.33  $20,000 each year may be used for 
 14.34  dissemination of information about the 
 14.35  demonstration grant projects.  If the 
 14.36  appropriation for either year is 
 14.37  insufficient, the appropriation for the 
 14.38  other is available. 
 14.39  $160,000 each year is for value-added 
 14.40  agricultural product processing and 
 14.41  marketing grants under Minnesota 
 14.42  Statutes, section 17.101, subdivision 5.
 14.43  $450,000 the first year and $300,000 
 14.44  the second year are for continued 
 14.45  research of solutions and alternatives 
 14.46  for manure management and odor 
 14.47  control.  This is a one-time 
 14.48  appropriation. 
 14.49  $50,000 the first year and $50,000 the 
 14.50  second year are for annual cost-share 
 14.51  payments to resident farmers for the 
 14.52  costs of organic certification.  The 
 14.53  annual cost-share payments per farmer 
 14.54  shall be two-thirds of the cost of the 
 14.55  certification or $200, whichever is 
 14.56  less.  A certified farmer is eligible 
 14.57  to receive annual certification 
 14.58  cost-share payments for up to five 
 14.59  years.  $15,000 each year is for 
 14.60  organic market and program 
 14.61  development.  This appropriation is 
 14.62  available until expended. 
 14.63  $30,000 the first year is to assess 
 14.64  producer production contracts under 
 14.65  section 205.  This appropriation is 
 14.66  available until June 30, 2001.  
 15.1      Sec. 13.  [APPROPRIATION; AGROFORESTRY LOAN PROGRAM.] 
 15.2      $200,000 is appropriated from the general fund to the 
 15.3   commissioner of agriculture for grants to one or more 
 15.4   cooperative associations organized under Minnesota Statutes, 
 15.5   chapter 308A, primarily for the purpose of facilitating the 
 15.6   production and marketing of short rotation woody crops.  The 
 15.7   grants must be matched by $1 of nonstate money for each dollar.  
 15.8   This appropriation remains available until expended. 
 15.9      Sec. 14.  [APPROPRIATION; STATE MEAT INSPECTION PROGRAM.] 
 15.10     $120,000 in fiscal year 2000 and $374,000 in fiscal year 
 15.11  2001 is appropriated from the general fund to the commissioner 
 15.12  of agriculture to expand the state meat inspection program.  If 
 15.13  the appropriation for either year is insufficient the 
 15.14  appropriation for the other year is available. 
 15.15     Sec. 15.  [APPROPRIATION; PSEUDORABIES MONITORING AND 
 15.16  TESTING.] 
 15.17     $245,000 is appropriated from the general fund to the board 
 15.18  of animal health for continued efforts to control pseudorabies 
 15.19  in swine.  This appropriation may be used to cover the costs of 
 15.20  pseudorabies monitoring, vaccines, blood tests, and laboratory 
 15.21  fees.  This appropriation is available until June 30, 2001. 
 15.22     Sec. 16.  [APPROPRIATION; FARM BUSINESS PLANNING SOFTWARE.] 
 15.23     $135,000 is appropriated from the general fund to the 
 15.24  commissioner of agriculture for a grant to the Center for Farm 
 15.25  Financial Management at the University of Minnesota for purposes 
 15.26  of a comprehensive effort to develop software and training 
 15.27  materials to help farmers improve their profitability through 
 15.28  sophisticated business planning.  The software and training will 
 15.29  complement existing FINPACK farm management tools.  No later 
 15.30  than March 1, 2001, the center must report to the agriculture 
 15.31  policy and finance committees of the senate and the house of 
 15.32  representatives on the software development program.  This 
 15.33  appropriation is available until March 31, 2001. 
 15.34     Sec. 17.  [APPROPRIATION; FARM DRAINAGE AND RUN-OFF 
 15.35  POLLUTION.] 
 15.36     $300,000 is appropriated from the general fund to the 
 16.1   commissioner of agriculture to establish an agricultural water 
 16.2   quality and quantity management, research, demonstration, and 
 16.3   education program.  Of this appropriation $150,000 is for 
 16.4   projects at the Lamberton site and $150,000 is for projects at 
 16.5   the Waseca site.  The commissioner may contract with the 
 16.6   University of Minnesota or other parties for the implementation 
 16.7   of parts of the program.  No later than March 1, 2001, the 
 16.8   program must report to the agriculture policy and finance 
 16.9   committees of the senate and the house of representatives on the 
 16.10  drainage and pollution control research project.  This 
 16.11  appropriation is available until March 31, 2001. 
 16.12     Sec. 18.  [APPROPRIATION; FARM ADVOCATES.] 
 16.13     $100,000 is appropriated from the general fund to the 
 16.14  commissioner of agriculture for the farm advocates program.  
 16.15  This appropriation is in addition to the appropriation for the 
 16.16  farm advocates program in Laws 1999, chapter 231, section 11, 
 16.17  and is available until June 30, 2001. 
 16.18     Sec. 19.  [EFFECTIVE DATE.] 
 16.19     Section 2 is effective the day following final enactment 
 16.20  and applies to claims for corrective action costs incurred after 
 16.21  that date.  Sections 3 to 11 and 13 to 18 are effective the day 
 16.22  following final enactment.  Section 12 is effective retroactive 
 16.23  to July 1, 1999. 
 16.24                             ARTICLE 2
 16.25                            A resolution
 16.26            memorializing the State of Iowa to promptly accelerate 
 16.27            the swine pseudorabies control and eradication program.
 16.28     
 16.29     WHEREAS, pseudorabies is a highly contagious respiratory 
 16.30  disease primarily affecting swine; and 
 16.31     WHEREAS, swine herds infected with pseudorabies impose a 
 16.32  heavy financial cost on producers through increased feed costs, 
 16.33  reduced weight gains, increased mortality, and expenses for herd 
 16.34  health management; and 
 16.35     WHEREAS, during the past fifteen months, Minnesota swine 
 16.36  producers, through a program generously supported by the 
 17.1   Minnesota Legislature, the Minnesota board of animal health, the 
 17.2   United States Department of Agriculture, private veterinarians, 
 17.3   and volunteers, have nearly eradicated pseudorabies from 
 17.4   Minnesota resident herds; and 
 17.5      WHEREAS, a large number of swine herds in the State of Iowa 
 17.6   remain infected and under quarantine because of pseudorabies; 
 17.7   and 
 17.8      WHEREAS, there is substantial danger that Minnesota herds 
 17.9   will be unintentionally reinfected with pseudorabies by the 
 17.10  transport of swine from the State of Iowa to slaughter 
 17.11  facilities in Minnesota; NOW, THEREFORE, 
 17.12     BE IT RESOLVED by the Legislature of the State of Minnesota 
 17.13  that it memorializes the Legislature of the State of Iowa to 
 17.14  accelerate the program for the control and eradication of 
 17.15  pseudorabies in Iowa. 
 17.16     BE IT FURTHER RESOLVED that the Secretary of State of the 
 17.17  State of Minnesota is directed to prepare copies of this 
 17.18  memorial and transmit them to the Governor of Iowa, the 
 17.19  President of the Iowa Senate, the Speaker of the Iowa House of 
 17.20  Representatives, and the Iowa Secretary of Agriculture.