HF 2110

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 03:08pm

A bill for an act
relating to sustainable agriculture; modifying certain programs and grants;
amending Minnesota Statutes 2012, sections 17.115, subdivisions 2, 3; 17.116;
17.1161.

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

Section 1.

Minnesota Statutes 2012, section 17.115, subdivision 2, is amended to read:

Subd. 2.

Loan criteria.

(a) The shared savings loan program must provide loans
for purchase of new or used machinery new text begin , urban agriculture development in cities with
populations greater than 60,000 people, new text end and installation of equipment for projects that
make environmental improvements and enhance farm profitability. Eligible loan uses do
not include seed, fertilizer, or fuel.

(b) Loans may not exceed $40,000 per individual new text begin or organization new text end applying for a loan
and may not exceed $160,000 for loans to four or more individuals new text begin or to two or more
organizations new text end on joint projects. The loan repayment period may be up to seven years as
determined by project cost and energy savings. The interest rate on the loans must not
exceed six percent.

(c) Loans may only be made to residents new text begin and organizations new text end of this state engaged in
farming.

Sec. 2.

Minnesota Statutes 2012, section 17.115, subdivision 3, is amended to read:

Subd. 3.

Awarding of loans.

(a) Applications for loans must be made to the
commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a loan review
panel appointed by the commissioner. The loan review panel shall consist of two
lenders with agricultural experience, two resident farmers of the state using sustainable
agriculture methods, two resident farmers of the state using organic agriculture methods,
a farm management specialist, new text begin two residents of the state practicing urban agriculture, new text end a
representative from a postsecondary education institution, and a chair from the department.

(c) The loan review panel shall rank applications according to the following criteria:

(1) realize savings to the cost of agricultural production;

(2) reduce or make more efficient use of energy or inputs;

(3) increase overall farm profitability; and

(4) result in environmental benefits.

(d) A loan application must show that the loan can be repaid by the applicant.

(e) The commissioner must consider the recommendations of the loan review panel
and may make loans for eligible projects.

Sec. 3.

Minnesota Statutes 2012, section 17.116, is amended to read:

17.116 SUSTAINABLE AGRICULTURE DEMONSTRATION GRANTS.

Subdivision 1.

Establishment.

The commissioner shall establish a grant program
for sustainable agriculture methods that demonstrates best management practices,
including farm input reduction or management, new text begin urban agriculture development in cities
with populations greater than 60,000 people, new text end enterprise diversification including new crops
and livestock, farm energy efficiency or production, or the transfer of technologies that
enhance the environment and farm profitability. The commissioner shall use the program
to demonstrate and publicize the energy efficiency, environmental benefit, and profitability
of sustainable agriculture techniques or systems from production through marketing new text begin ,
and to assist eligible organizations and individuals in qualifying urban cities address
fresh food access including access to affordable organic foods to reduce food deserts, as
defined by the United States Department of Agriculture, through the development of urban
agriculture projects new text end . The grants must fund research or demonstrations on farms consistent
with the program objectives.

Subd. 2.

Eligibility.

(a) Grants may only be made to farmers, educational institutions,
individuals at educational institutions, or nonprofit organizations residing or located in the
state for research or demonstrations on farms in the state new text begin or organizations and individuals
in qualifying urban cities that address fresh food access including access to affordable
organic foods to reduce food deserts through the development of urban agriculture projects new text end .

(b) Grants may only be made deleted text begin for projects that show deleted text end :

(1) new text begin for projects that demonstrate:
new text end

new text begin (i) new text end the ability to maximize direct or indirect energy savings or production;

deleted text begin (2) deleted text end new text begin (ii) new text end a positive effect or reduced adverse effect on the environment; and

deleted text begin (3) deleted text end new text begin (iii) new text end increased profitability for the individual farm by reducing costs or improving
marketing opportunities deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) for projects that address fresh food access including access to affordable organic
foods to reduce food deserts through the development of urban agriculture projects.
new text end

Subd. 3.

Awarding of grants.

(a) Applications for grants must be made to the
commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a technical
review panel appointed by the commissioner. The technical review panel shall consist of a
soil scientist, an agronomist, a representative from a postsecondary educational institution,
an agricultural marketing specialist, two resident farmers of the state using sustainable
agriculture methods, two resident farmers of the state using organic agriculture methods,
new text begin two residents of the state practicing urban agriculture, new text end and a chair from the department.

(c) The technical review panel shall rank applications according to the following
criteria:

(1) direct or indirect energy savings or production;

(2) environmental benefit;

(3) farm profitability;

(4) the number of farms able to apply the techniques or the technology proposed;

(5) the effectiveness of the project as a demonstration;

(6) the immediate transferability of the project to farms; deleted text begin and
deleted text end

(7) the ability of the project to accomplish its goals deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) the ability to address fresh food access including access to affordable organic
foods to improve both local and regional food security through the development of urban
agriculture projects; and
new text end

new text begin (9) the ability to address health disparities related to food access.
new text end

(d) The commissioner shall consider the recommendations of the technical review
panel and may award grants for eligible projects. Priority must be given to applicants who
are farmers or groups of farmers.

(e) Grants for eligible projects may not exceed $25,000 unless the portion above
$25,000 is matched on an equal basis by the applicant's cash or in-kind land use
contribution. Grant funding of projects may not exceed $50,000 under this section, but
applicants may utilize other funding sources. A portion of each grant must be targeted for
public information activities of the project.

(f) A project may continue for up to three years. Multiyear projects must be
reevaluated by the technical review panel and the commissioner before second or third
year funding is approved. A project is limited to one grant for its funding.

Sec. 4.

Minnesota Statutes 2012, section 17.1161, is amended to read:

17.1161 SUSTAINABLE DEVELOPMENT OF MINNESOTA
AGRICULTURE PROGRAM.

Subdivision 1.

Establishment; framework.

The Minnesota Institute for Sustainable
Agriculture shall establish a framework for participatory problem-solving in local
communities throughout rural new text begin and urban new text end Minnesota that will strengthen the connection
between local communities, new text begin identified food deserts, as defined by the United States
Department of Agriculture, and deficient affordable fresh and organic food access zones in
urban communities, new text end regions, and the land-grant university; invest research, education, and
outreach dollars to meet agreed-upon local and regional needs; and foster the development
of integrated agricultural systems that are profitable, enhance environmental quality, and
support new text begin healthy new text end rural new text begin and urban new text end communities. The framework must include regional,
community-controlled agricultural sustainable development centers located at University
of Minnesota regional experiment stations. At each center, the Minnesota Institute for
Sustainable Agriculture shall facilitate the development of a leadership team comprised
of farmers, researchers, public agencies, and other local community representatives to
identify problems, chart trends in problems over time, and develop an understanding of
the agricultural system as a whole, common goals for development of the system, and
five-year action plans to address those goals. The Minnesota Institute for Sustainable
Agriculture shall appoint a statewide oversight group of persons with a thorough
knowledge of agriculture-related issues, including farmers' organizations, commodity
groups, rural economic development groups, the Department of Agriculture and other
public agencies, academic personnel, the Agricultural Utilization Research Institute, the
Minnesota Extension Service, and representatives from each regional leadership team.
The oversight group shall review and comment on the regional centers' action plans and
integrate them into a comprehensive agenda for long-term basic and applied research,
education, and outreach activities. The oversight group shall use this agenda to make
recommendations on the allocation of funds for regional or statewide use. The Minnesota
Institute for Sustainable Agriculture board of directors shall review and give final approval
of the allocation of funds after consultation with the dean of the College of Agricultural,
Food, and Environmental Sciences at the University of Minnesota.

Subd. 2.

Program areas.

Long-term research and education activities must be
focused in deleted text begin four deleted text end new text begin five new text end program areas:

(1) sustainable cropping systems;

(2) development of markets and agriculture-related businesses;

(3) sustainable livestock systems; deleted text begin and
deleted text end

(4) new text begin improving access to high-quality fresh fruits and vegetables and increasing local
food security in very low to moderate income communities; and
new text end

new text begin (5) new text end intergenerational transfer in agriculture.