1.1 	A bill for an act
1.2 	relating to agriculture; establishing a variable rate fertilizer application 
1.3 	equipment grant program; appropriating money;proposing coding for new law 
1.4 	in Minnesota Statutes, chapter 17.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [17.119] VARIABLE RATE FERTILIZER APPLICATION 
1.7 	EQUIPMENT GRANT PROGRAM.
1.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
1.9 	this subdivision have the meanings given.
1.10 	(b) "Eligible person" means a partnership, corporation, cooperative, or other legal 
1.11 	business structure that applies fertilizer to agricultural land for hire.
1.12 	(c) "Eligible equipment" means variable rate fertilizer application machinery or 
1.13 	equipment that is capable of applying three or more products simultaneously at variable 
1.14 	rates.
1.15 		Subd. 2.Grant program; administration. The commissioner of agriculture shall 
1.16 	administer a grant program to partially reimburse an eligible person for the purchase of 
1.17 	eligible equipment. Before receiving a grant, an eligible person must submit an affidavit 
1.18 	on a form provided by the commissioner of agriculture certifying that the eligible person 
1.19 	or the eligible person's agent will use the eligible equipment to fertilize at least 5,000 
1.20 	agricultural acres in this state in each of the following five years. A grant may not exceed 
1.21 	ten percent of the amount paid by the eligible person to purchase the eligible equipment. 
1.22 	If eligible grant applications exceed available funds, the commissioner of agriculture may 
1.23 	develop and employ an equitable lottery system to select grant recipients.

2.1 	Sec. 2. APPROPRIATION; VARIABLE RATE FERTILIZER APPLICATION 
2.2 	EQUIPMENT GRANT PROGRAM.
 2.3 	$2,000,000 is appropriated in fiscal year 2011 from the clean water fund to the 
2.4 	commissioner of agriculture to award grants under section 1.