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SF 27

as introduced - 91st Legislature, 2020 5th Special Session (2020 - 2020) Posted on 11/12/2020 03:05pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to agriculture; modifying the farm loan origination fee grant program;
amending Laws 2020, chapter 101, section 5, subdivision 1.

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

Section 1.

Laws 2020, chapter 101, section 5, subdivision 1, is amended to read:


Subdivision 1.

Farm loan origination fee grants.

(a) $175,000 in fiscal year 2020 is
appropriated from the coronavirus relief federal fund to the commissioner of agriculture for
grants to eligible farmers who have been approved for farm debt restructuring loans
guaranteed by the United States Department of Agriculture (USDA), Farm Service Agency
or issued under a loan program administered by the Rural Finance Authority. The
commissioner must award an eligible farmer a grant in an amount equal to 50 percent of
the loan origination fee amount required for the farmer to obtain the USDA, Farm Service
Agency guaranteed loan or Rural Finance Authority program loan.

(b) For purposes of this section, "eligible farmer" means an individual who regularly
participates in physical labor or operations management in the individual's farming operation
and files "Schedule F" as part of the person's annual Form 1040 filing with the United States
Internal Revenue Service or a family farm organized under Minnesota Statutes, section
500.24, if the individual or family farmdeleted text begin:
deleted text end

deleted text begin (1)deleted text end has a total net worth of less than $800,000 in calendar year 2020deleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) is either in mediation proceedings under Minnesota Statutes, chapter 583, or has
received a mediation notice under Minnesota Statutes, section 583.26, subdivision 1,
paragraph (a).
deleted text end

(c) The commissioner must give first priority to grant applicants who are currently in
mediation under Minnesota Statutes, chapter 583deleted text begin, and must give second priority to grant
applicants who have received a mediation notice under Minnesota Statutes, section 583.26,
subdivision 1
, paragraph (a)
deleted text end.

(d) The amount appropriated under this subdivision is onetime.

(e) The commissioner may use up to ten percent of the amount appropriated under this
section to administer the grant program.

new text begin (f) If money appropriated under this subdivision is not encumbered by November 15,
2020, the commissioner may award the unencumbered amount as grants of not more than
$5,000 per farmer to eligible farmers who can otherwise demonstrate financial need due to
COVID-19 but have not been approved for a farm debt restructuring loan guaranteed by
USDA, Farm Service Agency or issued under a loan program administered by the Rural
Finance Authority. When awarding grants under this paragraph, the commissioner must
give preference to farmers in mediation as required under paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end