HF 1796

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/03/2025 02:44 p.m.

A bill for an act
relating to agriculture; modifying grant awards for the livestock investment grant
program; amending Minnesota Statutes 2024, section 17.118, subdivisions 1, 2,
3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 17.118, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Establishment deleted text end new text begin Administration and grant awards new text end .

The commissioner
may award a livestock investment grant to a person who raises livestock in this state equal
to deleted text begin ten percent of the first $500,000 of qualifying expenditures, provided the person makes
qualifying expenditures of at least $4,000 deleted text end new text begin 50 percent of the first $20,000 of qualifying
expenditures and 20 percent of the next $220,000 of qualifying expenditures new text end . The
commissioner may award multiple livestock investment grants to a person over the life of
the program and shall give preference to applicants who have not previously received a
grant under this section.

Sec. 2.

Minnesota Statutes 2024, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
Cervidae, Ratitae, bison, sheep, horses, deleted text begin and deleted text end llamas new text begin , rabbits, donkeys, and alpacas new text end .

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps, and
well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste
management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor the
productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences, including but not limited to farmed Cervidae perimeter fences required
under section 35.155, subdivision 4; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable income.
Qualifying expenditures do not include an amount paid to refinance existing debt.

Sec. 3.

Minnesota Statutes 2024, section 17.118, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for a livestock investment grant, a person must new text begin be a
representative of a Minnesota Tribal government as defined in section 10.65, subdivision
2, or new text end :

(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
subdivision 2, that is eligible to own farmland and operate a farm in this state under section
500.24;

(2) be the principal operator of the farm;

(3) hold a feedlot registration, if required; and

(4) apply to the commissioner on forms prescribed by the commissioner including a
statement of the qualifying expenditures made during the qualifying period along with any
proof or other documentation the commissioner may require.