1.1 	A bill for an act
1.2 	relating to agriculture; providing milk producer
1.3 	payments to beginning milk producers; proposing coding
1.4 	for new law in Minnesota Statutes, chapter 41A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [41A.10] MILK PRODUCTION DEVELOPMENT PROGRAM.
1.7 		Subdivision 1.Definitions. (a) The definitions in this
1.8 	subdivision apply to this section.
1.9 	(b) "Beginning milk producer" means:
1.10 	(1) a natural person who is an adult and who:
1.11 	(i) has not directly or indirectly owned or whose spouse
1.12 	has not directly or indirectly owned more than 20 lactating
1.13 	dairy cattle in the five years prior to June 30, 2005, or has
1.14 	rebuilt milk production capacity and suffered an uninsured loss
1.15 	in excess of $100,000 that was due to a fire or other disaster;
1.16 	(ii) has acquired at least five dairy cows after June 30,
1.17 	2005;
1.18 	(iii) is actively operating the farm where the dairy cows
1.19 	reside; and 
1.20 	(iv) has a total net worth, including assets and
1.21 	liabilities of the person's spouse and dependents, of less than
1.22 	$400,000; or 
1.23 	(2) a family farm corporation, family farm partnership,
1.24 	family farm limited liability company, or family farm trust, as
1.25 	the terms are defined in section 500.24, subdivision 2, that has:
2.1 	(i) not directly or indirectly owned more than 20 lactating
2.2 	dairy cattle in the five years prior to June 30, 2005, or has
2.3 	rebuilt milk production capacity and suffered an uninsured loss
2.4 	in excess of $100,000 that was due to a fire or other disaster;
2.5 	(ii) acquired at least five dairy cows after June 30, 2005;
2.6 	(iii) at least one of the related shareholders or members
2.7 	is actively operating the farm where the dairy cows reside;
2.8 	(iv) a total net worth, including assets and liabilities of
2.9 	all of the shareholders or members, of less than $400,000; and 
2.10 	(v) not changed its structure with continued control by the
2.11 	same individuals in order to become eligible to receive payments
2.12 	under this section.
2.13 	(c) "Commissioner" means the commissioner of agriculture.
2.14 		Subd. 2.Milk producer payments. (a) The commissioner
2.15 	shall make cash payments to a beginning milk producer located in
2.16 	this state.  The amount of the payment for each beginning milk
2.17 	producer's annual production is $1 per 100 pounds of milk for
2.18 	the first 1,000,000 pounds produced each year on the dairy farm
2.19 	for the first five years from the start of milk production.
2.20 	(b) The total payments to an individual, married couple, or
2.21 	entity under paragraph (a) in any fiscal year may not exceed
2.22 	$10,000.  The total payments for two or more beginning milk
2.23 	producers operating on a single premise under paragraph (a) in
2.24 	any fiscal year may not exceed $20,000.
2.25 	(c) By the last day of October, January, April, and July,
2.26 	each dairy producer shall file a claim for payment for milk
2.27 	production during the preceding three calendar months.  A
2.28 	producer filing a claim under this subdivision shall include a
2.29 	statement of the producer's total milk production in this state
2.30 	during the quarter covered by the claim.  The volume of milk
2.31 	production on the claim and the beginning dairy producer's
2.32 	eligibility must be certified by a farm management program
2.33 	instructor approved by the commissioner.
2.34 	(d) Payments must be made by November 15, February 15, May
2.35 	15, and August 15.  If the total amount for which all beginning
2.36 	milk producers are eligible in a quarter exceeds the amount
3.1 	available for payments, the commissioner shall make payments on
3.2 	a pro rata basis.
3.3 		Subd. 3.Farm management program. As a condition of
3.4 	receiving payments under subdivision 2, a beginning milk
3.5 	producer must agree to participate in a farm management program
3.6 	approved by the commissioner.