1.1                          A bill for an act 
  1.2             relating to agriculture; providing milk producer 
  1.3             payments to beginning milk producers; establishing a 
  1.4             dairy modernization grant program; proposing coding 
  1.5             for new law in Minnesota Statutes, chapters 41A; 116J. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [41A.10] [MILK PRODUCTION DEVELOPMENT PROGRAM.] 
  1.8      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  1.9   section, the terms defined in this subdivision have the meanings 
  1.10  given them. 
  1.11     (b) "Beginning milk producer" means a natural person who 
  1.12  has: 
  1.13     (1) not owned more than 20 lactating dairy cattle in the 
  1.14  five years prior to June 30, 2005, or has rebuilt milk 
  1.15  production capacity after June 30, 2005, that was destroyed by a 
  1.16  barn fire; and 
  1.17     (2) purchased dairy cows after June 30, 2005. 
  1.18     (c) "Commissioner" means the commissioner of agriculture. 
  1.19     Subd. 2.  [MILK PRODUCER PAYMENTS.] (a) The commissioner 
  1.20  shall make cash payments to a beginning milk producer located in 
  1.21  the state.  The amount of the payment for each beginning milk 
  1.22  producer's annual production is $1 per hundred pounds of milk 
  1.23  for the first one million pounds produced each year on the dairy 
  1.24  farm for the first five years from the start of milk production. 
  1.25     (b) The total payments to a dairy producer under paragraph 
  2.1   (a) in any fiscal year may not exceed $10,000. 
  2.2      (c) By the last day of October, January, April, and July, 
  2.3   each dairy producer shall file a claim for payment for milk 
  2.4   production during the preceding three calendar months.  A 
  2.5   producer that files a claim under this subdivision shall include 
  2.6   a statement of the producer's total milk production in Minnesota 
  2.7   during the quarter covered by the claim.  The volume of milk 
  2.8   production on the claim must be certified by a farm management 
  2.9   program instructor approved by the commissioner. 
  2.10     (d) Payments shall be made November 15, February 15, May 
  2.11  15, and August 15. 
  2.12     Subd. 3.  [FARM MANAGEMENT PROGRAM.] As a condition of 
  2.13  receiving the payments under subdivision 2, a beginning milk 
  2.14  producer must agree to participate in a farm management program 
  2.15  approved by the commissioner. 
  2.16     Sec. 2.  [116J.407] [DAIRY MODERNIZATION GRANTS.] 
  2.17     Subdivision 1.  [GENERALLY.] The commissioner shall make 
  2.18  funds available to eligible regional or statewide development 
  2.19  organizations defined under section 116J.8731 to be used for the 
  2.20  purposes of this section. 
  2.21     Subd. 2.  [ELIGIBLE EXPENDITURES.] Grant funds may be used 
  2.22  for the acquisition, construction, or improvement of buildings 
  2.23  or facilities, or the acquisition of equipment, for dairy animal 
  2.24  housing, confinement, animal feeding, milk production, and waste 
  2.25  management, including the following, if related to dairy animals:
  2.26     (1) freestall barns; 
  2.27     (2) fences; 
  2.28     (3) watering facilities; 
  2.29     (4) feed storage and handling equipment; 
  2.30     (5) milking parlors; 
  2.31     (6) robotic equipment; 
  2.32     (7) scales; 
  2.33     (8) milk storage and cooling facilities; 
  2.34     (9) bulk tanks; 
  2.35     (10) manure pumping and storage facilities; 
  2.36     (11) digesters; 
  3.1      (12) equipment used to produce energy; and 
  3.2      (13) capital investment in pasture.  
  3.3      Subd. 3.  [APPLICATION PROCESS.] The commissioner of 
  3.4   agriculture and the commissioner of employment and economic 
  3.5   development shall establish a process by which an eligible dairy 
  3.6   producer may make application for assistance under this section 
  3.7   to the county in which the producer is located.  The application 
  3.8   must require the producer and county to provide information 
  3.9   regarding the producer's existing business, the intended use of 
  3.10  the requested funds, and other information the commissioners 
  3.11  find necessary to evaluate the feasibility, likely success, and 
  3.12  economic return of the project, and to ensure that grant funds 
  3.13  can be provided consistent with other state and federal laws.