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HF 3558

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/05/2020 02:46pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; encouraging advanced grant payments to certain persons;
establishing an emerging farmers working group; doubling the maximum loan
amount under the pilot agricultural microloan program; amending Minnesota
Statutes 2018, sections 17.03, by adding a subdivision; 41B.056, subdivision 4;
proposing coding for new law in Minnesota Statutes, chapter 17.


Section 1.

Minnesota Statutes 2018, section 17.03, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Advance grant payments encouraged. new text end

new text begin Notwithstanding section 16A.41,
subdivision 1, the commissioner is encouraged to advance up to 50 percent of a grant award
to a person who demonstrates to the commissioner's satisfaction that the person:
new text end

new text begin (1) is new to farming or has farmed for less than ten consecutive years;
new text end

new text begin (2) is a member of a protected group as defined in section 43A.02, subdivision 33, or a
qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph (b); or
new text end

new text begin (3) has served in the armed forces and first obtained veteran status during the last ten
new text end

Sec. 2.

new text begin [17.055] EMERGING FARMERS.
new text end

new text begin Subdivision 1. new text end

new text begin Emerging farmers working group. new text end

new text begin To advise the commissioner and
legislature regarding the development and implementation of programs and initiatives that
support emerging farmers in this state, the commissioner must periodically convene a
working group consisting, to the extent possible, of persons who are, and organizations that
represent, farmers or aspiring farmers who are women, veterans, persons with disabilities,
American Indian or Alaskan Natives, members of a community of color, young, or urban,
or any other emerging farmers as determined by the commissioner. No later than January
15 each year, the commissioner must update the chairs and ranking minority members of
the legislative committees and divisions with jurisdiction over agriculture regarding the
working group's activities and recommendations.
new text end

new text begin Subd. 2. new text end

new text begin Expiration. new text end

new text begin This section expires August 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2018, section 41B.056, subdivision 4, is amended to read:

Subd. 4.


(a) The authority may disburse loans through an intermediary to farmers
who are eligible under subdivision 3. The total accumulative loan principal must not exceed
deleted text begin $10,000deleted text endnew text begin $20,000new text end per loan.

(b) Refinancing an existing debt is not an eligible purpose.

(c) The loan may be disbursed over a period not to exceed six years.

(d) A borrower may receive loans, depending on the availability of funds, up to 70
percent of the estimated value of the crop or livestock.

(e) Security for the loan must be a personal note executed by the borrower and any other
security required by the intermediary or the authority.

(f) The authority may prescribe forms and establish an application process for applicants
to apply for a loan.

(g) The interest payable on loans for the pilot agricultural microloan program must be
at a rate determined by the authority.

(h) Loans under this program will be made using money in the revolving loan account
established under section 41B.06.

(i) Repayments of financial assistance under this section, including principal and interest,
must be deposited into the revolving loan account established under section 41B.06.