SF 2437

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2014 04:44pm

A bill for an act
relating to agriculture; modifying provisions related to the shared savings loan
program; modifying definition applicable to the pilot agricultural microloan
program; amending Minnesota Statutes 2012, sections 17.115, subdivisions
1, 2, 3, 4; 41B.056, subdivision 2; repealing Minnesota Statutes 2012, section
17.115, subdivision 5.

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

Section 1.

Minnesota Statutes 2012, section 17.115, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The commissioner shall establish a shared savings
loan program to provide loans that enable farmers to deleted text begin adopt best management practices
that emphasize sufficiency and self-sufficiency in agricultural inputs, including energy
efficiency, reduction or improved management of inputs, increasing energy production by
agricultural producers, and environmental improvements. deleted text end new text begin :
new text end

new text begin (1) add value to crops or livestock produced in Minnesota;
new text end

new text begin (2) adopt best management practices that emphasize sufficiency and self-sufficiency;
new text end

new text begin (3) reduce or improve management of agricultural inputs resulting in environmental
improvements; or
new text end

new text begin (4) increase production of on-farm energy.
new text end

Sec. 2.

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 deleted text begin machinery deleted text end new text begin equipment new text end and installation of equipment for projects
that make environmental improvements and enhance farm profitability. new text begin The loan program
may also be used to add value to crops or livestock produced in Minnesota by: (1) initiating
or expanding livestock product processing; (2) purchasing equipment to initiate, upgrade,
or modernize value-added agricultural businesses; or (3) increasing farmers' processing
and aggregating capacity to facilitate entry into farm-to-institution and other markets.
new text end Eligible loan uses do not include seed, fertilizer, or fuel new text begin or other operating expenses new text end .

(b) Loans may not exceed $40,000 per individual applying for a loan and may
not exceed $160,000 for loans to four or more individuals 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 of this state engaged in farming.

new text begin (d) The commissioner may impose a reasonable nonrefundable application fee for
each application for a loan. The commissioner may review the fee annually and make
adjustments as necessary. The application fee shall be initially set at $50. Application
fees must be deposited in the revolving loan account established in this section. The
commissioner may also collect fees that are related to the origination of the loan.
new text end

Sec. 3.

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. deleted text begin 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, a representative from a postsecondary education institution, and a
chair from the department.
deleted text end

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

deleted text begin (1) realize savings to the cost of agricultural production;
deleted text end

deleted text begin (2) reduce or make more efficient use of energy or inputs;
deleted text end

deleted text begin (3) increase overall farm profitability; and
deleted text end

deleted text begin (4) result in environmental benefits.
deleted text end

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

deleted text begin (e) deleted text end new text begin (c) new text end The commissioner must consider the recommendations of the loan review
panel and may make loans for eligible projects.

Sec. 4.

Minnesota Statutes 2012, section 17.115, subdivision 4, is amended to read:

Subd. 4.

Administration; information dissemination.

new text begin The shared savings
revolving loan account is established in the special revenue fund. new text end The amount in the
revolving loan account is appropriated to the commissioner to make loans under this
section and administer the loan program. The interest on the money in the revolving loan
account deleted text begin and deleted text end new text begin , new text end the interest on loans repaid to the state new text begin , and any application fees new text end may be spent
by the commissioner for administrative expenses. The commissioner shall collect and
disseminate information relating to projects for which loans are given under this section.

Sec. 5.

Minnesota Statutes 2012, section 41B.056, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Intermediary" means any lending institution or other organization of a for-profit
or nonprofit nature that is in good standing with the state of Minnesota that has the
appropriate business structure and trained personnel suitable to providing efficient
disbursement of loan funds and the servicing and collection of loans.

(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
and other horticultural products, that are intensively cultivated.

(d) "Eligible livestock" means deleted text begin poultry that has been allowed access to the outside,
sheep, or goats deleted text end new text begin beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
ratitae, bison, sheep, horses, and llamas new text end .

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 17.115, subdivision 5, new text end new text begin is repealed.
new text end