SF 2704

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; creating a livestock investment grant program;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 17.

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

Section 1.

new text begin [17.118] LIVESTOCK INVESTMENT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner may award a livestock investment
grant to a person who raises livestock in this state equal to ten percent of the first $500,000
of qualifying expenditures, provided the person makes qualifying expenditures of at least
$40,000. The commissioner may award multiple livestock investment grants to a person
over the life of the program as long as the cumulative amount does not exceed $50,000.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
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new text begin (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
cervidae, ratitae, bison, and llamas.
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new text begin (c) "Qualifying expenditures" means the amount spent for:
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new text begin (1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products; or
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new text begin (2) the acquisition of equipment for livestock housing, confinement, feeding, and
waste management including, but not limited to, the following:
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new text begin (i) freestall barns;
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new text begin (ii) watering facilities;
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new text begin (iii) feed storage and handling equipment;
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new text begin (iv) milking parlors;
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new text begin (v) robotic equipment;
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new text begin (vi) scales;
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new text begin (vii) milk storage and cooling facilities;
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new text begin (viii) bulk tanks;
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new text begin (ix) computer hardware and software and associated equipment used to monitor
the productivity and feeding of livestock;
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new text begin (x) manure pumping and storage facilities;
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new text begin (xi) swine farrowing facilities;
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new text begin (xii) swine and cattle finishing barns;
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new text begin (xiii) calving facilities;
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new text begin (xiv) digesters;
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new text begin (xv) equipment used to produce energy; and
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new text begin (xvi) on-farm processing facilities and equipment.
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new text begin Qualifying expenditures only include amounts that are allowed to be capitalized and
deducted under either section 167 or 179 of the Internal Revenue Code in computing
federal taxable income. Qualifying expenditures do not include an amount paid to
refinance existing debt.
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new text begin (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
calendar year of which the first six months precede the first day of the current fiscal year.
For example, an eligible person who makes qualifying expenditures during calendar
year 2008 is eligible to receive a livestock investment grant between July 1, 2008, and
June 30, 2009.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible for a livestock investment grant, a person
must:
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new text begin (1) be a resident of Minnesota or an entity authorized to farm in this state under
section 500.24, subdivision 3;
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new text begin (2) be the principal operator of the farm;
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new text begin (3) hold an appropriate feedlot registration; and
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new text begin (4) apply to the commissioner on forms prescribed by the commissioner including a
statement of the qualifying expenditures of at least $40,000 made during the qualifying
period along with any proof or other documentation the commissioner may require.
new text end

new text begin (b) The $50,000 maximum grant applies at the entity level for partnerships, S
corporations, trusts, and estates as well as at the individual level. In the case of married
individuals, the grant is limited to $50,000 for a married couple.
new text end

new text begin Subd. 4. new text end

new text begin Process. new text end

new text begin The commissioner shall review completed applications and
award grants to eligible applicants in the order in which applications were received by
the commissioner. The commissioner shall certify eligible applications up to the amount
appropriated for a fiscal year. The commissioner must place any additional eligible
applications on a waiting list and, notwithstanding subdivision 2, paragraph (c), give
them priority during the next fiscal year. The commissioner shall notify in writing any
applicant who applies for a grant and is ineligible under the provisions of this section
as well as any applicant whose application is received or reviewed after the fiscal year
funding limit has been reached.
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new text begin Subd. 5. new text end

new text begin Livestock investment grant account. new text end

new text begin A livestock investment grant
account is hereby established in the agricultural fund to receive general fund appropriations
and money transferred from other accounts. Any interest earned on money in the account
accrues to the account. Money in the account is appropriated to the commissioner for
the purposes of the livestock investment grant program, including costs incurred to
administer the program.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $....... is appropriated from the general fund in fiscal year 2009 to the commissioner
of agriculture for the purposes of section 1.
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