HF 1687

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:00pm

A bill for an act
relating to agriculture; providing an agriculture cooperative grant program;
authorizing rulemaking; amending Minnesota Statutes 2020, section 17.101,
subdivisions 2, 5, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 17.101, subdivision 2, is amended to read:

Subd. 2.

Agricultural development grants and contracts.

In order to carry out the
duties in subdivision 1, the commissioner, in addition to whatever other resources the
department may commit, shall make grants and enter into contracts to fulfill the obligations
of subdivision 1. The commissioner may enter into partnerships or seek gifts to carry out
subdivision 1. The commissioner may contract with, among others, agricultural commodity
organizations, the University of Minnesota, and agriculture related businesses to fulfill the
duties. The commissioner shall make permanent rules for the administration of these grants
and contracts new text begin , including the grants authorized under subdivision 7 new text end . The rules shall specify
at a minimum:

(a) eligibility criteria;

(b) application procedures;

(c) provisions for application review and project approval;

(d) provisions for program monitoring and review for all approved grants and contracts;
and

(e) other provisions the commissioner finds necessary.

Contracts entered into by the commissioner pursuant to this subdivision shall not exceed
75 percent of the cost of the project supported by the commissioner's grant. In any year, no
organization shall receive more than $70,000 in grants from the commissioner.

Sec. 2.

Minnesota Statutes 2020, section 17.101, subdivision 5, is amended to read:

Subd. 5.

Definitions.

For purposes of this section:

(1) "agricultural commodity" means a material produced for use in or as food, feed,
seed, or fiber and includes crops for fiber, food, oilseeds, seeds, livestock, livestock products,
dairy, dairy products, poultry, poultry products, and other products or by-products of the
farm produced for the same or similar use, except ethanol; deleted text begin and
deleted text end

(2) "agricultural product processing facility" means land, buildings, structures, fixtures,
and improvements located or to be located in Minnesota and used or operated primarily for
the processing or production of marketable products from agricultural commodities produced
in Minnesota deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) "agricultural service" means an action made under the direction of a farmer that
provides value to another entity. Agricultural service includes grazing to manage vegetation.
new text end

Sec. 3.

Minnesota Statutes 2020, section 17.101, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Cooperative grants. new text end

new text begin (a) To carry out the duties in subdivision 1, the
commissioner must establish and implement a value-added agricultural product processing
and marketing grant program to help farmers finance new cooperatives that organize for
the purposes of operating agricultural product processing facilities, forming marketing
cooperatives, or otherwise marketing an agricultural service or an agricultural product.
new text end

new text begin (b) To be eligible for this program, a grantee must:
new text end

new text begin (1) be a cooperative organized under chapter 308A;
new text end

new text begin (2) certify that all control and equity in the cooperative is from farmers, family farm
partnerships, family farm limited liability companies, or family farm corporations as defined
in section 500.24, subdivision 2, who are actively engaged in agricultural commodity
production;
new text end

new text begin (3) be operated primarily for the processing or marketing of agricultural commodities
or services produced in Minnesota; and
new text end

new text begin (4) receive agricultural commodities produced primarily by shareholders or members
of the cooperative.
new text end

new text begin (c) The commissioner may receive applications from eligible cooperatives and make
grants up to $50,000 for feasibility, marketing analysis, assistance with organizational
development, financing and managing new cooperatives, product development, development
of business and marketing plans, and predesign of facilities including site analysis,
development of bid specifications, preliminary blueprints and schematics, and completion
of purchase agreements and other necessary legal documents.
new text end