SF 296

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; providing milk producer
payments to beginning milk producers; proposing coding
for new law in Minnesota Statutes, chapter 41A.

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

Section 1.

new text begin [41A.10] MILK PRODUCTION DEVELOPMENT PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this
subdivision apply to this section.
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new text begin (b) "Beginning milk producer" means:
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new text begin (1) a natural person who is an adult and who:
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new text begin (i) has not directly or indirectly owned or whose spouse
has not directly or indirectly owned more than 20 lactating
dairy cattle in the five years prior to June 30, 2005, or has
rebuilt milk production capacity and suffered an uninsured loss
in excess of $100,000 that was due to a fire or other disaster;
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new text begin (ii) has acquired at least five dairy cows after June 30,
2005;
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new text begin (iii) is actively operating the farm where the dairy cows
reside; and
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new text begin (iv) has a total net worth, including assets and
liabilities of the person's spouse and dependents, of less than
$400,000; or
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new text begin (2) a family farm corporation, family farm partnership,
family farm limited liability company, or family farm trust, as
the terms are defined in section 500.24, subdivision 2, that has:
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new text begin (i) not directly or indirectly owned more than 20 lactating
dairy cattle in the five years prior to June 30, 2005, or has
rebuilt milk production capacity and suffered an uninsured loss
in excess of $100,000 that was due to a fire or other disaster;
new text end

new text begin (ii) acquired at least five dairy cows after June 30, 2005;
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new text begin (iii) at least one of the related shareholders or members
is actively operating the farm where the dairy cows reside;
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new text begin (iv) a total net worth, including assets and liabilities of
all of the shareholders or members, of less than $400,000; and
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new text begin (v) not changed its structure with continued control by the
same individuals in order to become eligible to receive payments
under this section.
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new text begin (c) "Commissioner" means the commissioner of agriculture.
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new text begin Subd. 2. new text end

new text begin Milk producer payments. new text end

new text begin (a) The commissioner
shall make cash payments to a beginning milk producer located in
this state. The amount of the payment for each beginning milk
producer's annual production is $1 per 100 pounds of milk for
the first 1,000,000 pounds produced each year on the dairy farm
for the first five years from the start of milk production.
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new text begin (b) The total payments to an individual, married couple, or
entity under paragraph (a) in any fiscal year may not exceed
$10,000. The total payments for two or more beginning milk
producers operating on a single premise under paragraph (a) in
any fiscal year may not exceed $20,000.
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new text begin (c) By the last day of October, January, April, and July,
each dairy producer shall file a claim for payment for milk
production during the preceding three calendar months. A
producer filing a claim under this subdivision shall include a
statement of the producer's total milk production in this state
during the quarter covered by the claim. The volume of milk
production on the claim and the beginning dairy producer's
eligibility must be certified by a farm management program
instructor approved by the commissioner.
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new text begin (d) Payments must be made by November 15, February 15, May
15, and August 15. If the total amount for which all beginning
milk producers are eligible in a quarter exceeds the amount
available for payments, the commissioner shall make payments on
a pro rata basis.
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new text begin Subd. 3. new text end

new text begin Farm management program. new text end

new text begin As a condition of
receiving payments under subdivision 2, a beginning milk
producer must agree to participate in a farm management program
approved by the commissioner.
new text end