1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a dairy 
  1.3             modernization program; proposing coding for new law in 
  1.4             Minnesota Statutes, chapters 17; 116J. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [17.844] [LIVESTOCK PRODUCTION POLICY.] 
  1.7      (a) The policy of the state is to promote livestock 
  1.8   production under a broad range of management systems and sizes 
  1.9   of operation, provided that operations are environmentally sound 
  1.10  and meet all legal requirements of all jurisdictions, including 
  1.11  federal, state, county, town, city, and watershed district 
  1.12  requirements. 
  1.13     (b) In order to promote livestock production, state 
  1.14  agencies and local governments when appropriate shall, to the 
  1.15  extent allowed by law: 
  1.16     (1) allow farms to be competitive and have the potential to 
  1.17  generate a net profit through adoption of new technology, growth 
  1.18  in their farm business, and reinvestment in buildings, 
  1.19  equipment, and other infrastructure; 
  1.20     (2) provide encouragement for establishment of livestock 
  1.21  enterprises on farms; 
  1.22     (3) promote environmental protection and water quality 
  1.23  improvement through increased livestock production that results 
  1.24  in controlling runoff through increased acreage of hay, pasture, 
  1.25  and small grains; and 
  2.1      (4) promote more farms to use agronomically applied manure 
  2.2   to increase the water holding capacity of the soil, control 
  2.3   erosion, and decrease phosphorus runoff. 
  2.4      Sec. 2.  [116J.407] [DAIRY MODERNIZATION.] 
  2.5      Subdivision 1.  [GENERALLY.] The commissioner shall make 
  2.6   funds available to eligible regional or statewide development 
  2.7   organizations defined under section 116J.8731 to be used for the 
  2.8   purposes of this section. 
  2.9      Subd. 2.  [ELIGIBLE EXPENDITURES.] Money may be used for 
  2.10  loans for the acquisition, construction, or improvement of 
  2.11  buildings or facilities, or the acquisition of equipment, for 
  2.12  dairy animal housing, confinement, animal feeding, milk 
  2.13  production, and waste management, including the following, if 
  2.14  related to dairy animals: 
  2.15     (1) freestall barns; 
  2.16     (2) fences; 
  2.17     (3) watering facilities; 
  2.18     (4) feed storage and handling equipment; 
  2.19     (5) milking parlors; 
  2.20     (6) robotic equipment; 
  2.21     (7) scales; 
  2.22     (8) milk storage and cooling facilities; 
  2.23     (9) bulk tanks; 
  2.24     (10) manure pumping and storage facilities; 
  2.25     (11) digesters; 
  2.26     (12) equipment used to produce energy; and 
  2.27     (13) capital investment in pasture.  
  2.28     Subd. 3.  [APPLICATION PROCESS.] The commissioner of 
  2.29  agriculture and the commissioner of employment and economic 
  2.30  development shall establish a process by which an eligible dairy 
  2.31  producer may make application for assistance under this section 
  2.32  to the county in which the producer is located.  The application 
  2.33  must require the producer and county to provide information 
  2.34  regarding the producer's existing business, the intended use of 
  2.35  the requested funds, and other information the commissioners 
  2.36  find necessary to evaluate the feasibility, likely success, and 
  3.1   economic return of the project, and to ensure that money can be 
  3.2   provided consistent with other state and federal laws. 
  3.3      Sec. 3.  [DAIRY PRODUCER PAYMENT REPORT.] 
  3.4      By January 15, 2005, the commissioner of agriculture shall 
  3.5   report to the senate and house policy and finance committees 
  3.6   with jurisdiction over agriculture on a value-added agriculture 
  3.7   program to pay beginning dairy farmers based on the amount of 
  3.8   milk production.  The report shall include suggested language to 
  3.9   create the program.