SF 3031

2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; changing the corporate and 
  1.3             partnership farming law; amending Minnesota Statutes 
  1.4             1998, sections 500.24, subdivisions 3a, 3b, 4, and 5; 
  1.5             and 500.245, subdivision 2; Minnesota Statutes 1999 
  1.6             Supplement, sections 500.24, subdivisions 2 and 3; and 
  1.7             500.245, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  500.24, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [DEFINITIONS.] The definitions in this 
  1.12  subdivision apply to this section. 
  1.13     (a) "Farming" means the production of (1) agricultural 
  1.14  products; (2) livestock or livestock products; (3) milk or milk 
  1.15  products; or (4) fruit or other horticultural products.  It does 
  1.16  not include the processing, refining, or packaging of said 
  1.17  products, nor the provision of spraying or harvesting services 
  1.18  by a processor or distributor of farm products.  It does not 
  1.19  include the production of timber or forest products, the 
  1.20  production of poultry or poultry products, or the feeding and 
  1.21  caring for livestock that are delivered to a corporation for 
  1.22  slaughter or processing for up to 20 days before slaughter or 
  1.23  processing. 
  1.24     (b) "Family farm" means an unincorporated farming unit 
  1.25  owned by one or more persons residing on the farm or actively 
  1.26  engaging in farming. 
  2.1      (c) "Family farm corporation" means a corporation founded 
  2.2   for the purpose of farming and the ownership of agricultural 
  2.3   land in which the majority of the voting stock is held by and 
  2.4   the majority of the stockholders are persons or, the spouses of 
  2.5   persons, or current beneficiaries of one or more family farm 
  2.6   trusts in which the trustee holds stock in a family farm 
  2.7   corporation, related to each other within the third degree of 
  2.8   kindred according to the rules of the civil law, and at least 
  2.9   one of said related persons is residing on or actively operating 
  2.10  the farm, and none of whose stockholders are corporations; 
  2.11  provided that a family farm corporation shall not cease to 
  2.12  qualify as such hereunder by reason of any devise or bequest: 
  2.13     (1) transfer of shares of voting stock to a person or the 
  2.14  spouse of a person related within the third degree of kindred 
  2.15  according to the rules of civil law to the person making the 
  2.16  transfer, or to a family farm trust of which the shareholder, 
  2.17  spouse, or related person is a current beneficiary; or 
  2.18     (2) distribution from a family farm trust of shares of 
  2.19  stock to a beneficiary related within the third degree of 
  2.20  kindred according to the rules of civil law to a majority of the 
  2.21  current beneficiaries of the trust, or to a family farm trust of 
  2.22  which the shareholder, spouse, or related person is a current 
  2.23  beneficiary. 
  2.24     For the purposes of this section, a transfer may be made 
  2.25  with or without consideration, either directly or indirectly, 
  2.26  during life or at death, whether or not in trust, of the shares 
  2.27  in the family farm corporation, and stock owned by a family farm 
  2.28  trust are considered to be owned in equal shares by the current 
  2.29  beneficiaries. 
  2.30     (d) "Family farm trust" means: 
  2.31     (1) a trust in which: 
  2.32     (i) a majority of the current beneficiaries are persons or 
  2.33  spouses of persons who are related to each other within the 
  2.34  third degree of kindred according to the rules of civil law; 
  2.35     (ii) all of the current beneficiaries are natural persons 
  2.36  or nonprofit corporations or trusts described in Internal 
  3.1   Revenue Code, section 170(c), as amended, and the regulations 
  3.2   under that section; and 
  3.3      (iii) one of the family member current beneficiaries is 
  3.4   residing on or actively operating the farm; or 
  3.5      (2) a charitable remainder trust as defined in Internal 
  3.6   Revenue Code, section 664, as amended, and the regulations under 
  3.7   that section, and a charitable lead trust as set forth in 
  3.8   Internal Revenue Code, section 170(f), and the regulations under 
  3.9   that section, if the lead period does not exceed ten years and 
  3.10  the majority of remainder beneficiaries are related to the 
  3.11  grantor within the third degree of kindred according to the 
  3.12  rules of civil law. 
  3.13     For the purposes of this section, if a distributee trust 
  3.14  becomes entitled to, or at the discretion of any person may 
  3.15  receive, a distribution from income or principal of a family 
  3.16  farm trust, then the distributee trust must independently 
  3.17  qualify as a family farm trust. 
  3.18     (e) "Authorized farm corporation" means a corporation 
  3.19  meeting the following standards: 
  3.20     (1) it has no more than five shareholders, provided that 
  3.21  for the purposes of this section, a husband and wife are 
  3.22  considered one shareholder; 
  3.23     (2) all its shareholders, other than any estate, are 
  3.24  natural persons; 
  3.25     (3) it does not have more than one class of shares; 
  3.26     (4) its revenue from rent, royalties, dividends, interest, 
  3.27  and annuities does not exceed 20 percent of its gross receipts; 
  3.28     (5) shareholders holding 51 percent or more of the interest 
  3.29  in the corporation reside on the farm or are actively engaging 
  3.30  in farming; 
  3.31     (6) it does not, directly or indirectly, own or otherwise 
  3.32  have an interest in any title to more than 1,500 acres of 
  3.33  agricultural land; and 
  3.34     (7) none of its shareholders are shareholders in other 
  3.35  authorized farm corporations that directly or indirectly in 
  3.36  combination with the corporation own more than 1,500 acres of 
  4.1   agricultural land. 
  4.2      (e) (f) "Authorized livestock farm corporation" means a 
  4.3   corporation formed for the production of livestock and meeting 
  4.4   the following standards: 
  4.5      (1) it is engaged in the production of livestock other than 
  4.6   dairy cattle; 
  4.7      (2) all its shareholders, other than any estate, are 
  4.8   natural persons or family farm corporations; 
  4.9      (3) it does not have more than one class of shares; 
  4.10     (4) its revenue from rent, royalties, dividends, interest, 
  4.11  and annuities does not exceed 20 percent of its gross receipts; 
  4.12     (5) shareholders holding 75 percent or more of the control, 
  4.13  financial, and capital investment in the corporation are farmers 
  4.14  residing in Minnesota and at least 51 percent of the required 
  4.15  percentage of farmers are actively engaged in livestock 
  4.16  production; 
  4.17     (6) it does not, directly or indirectly, own or otherwise 
  4.18  have an interest in any title to more than 1,500 acres of 
  4.19  agricultural land; and 
  4.20     (7) none of its shareholders are shareholders in other 
  4.21  authorized farm corporations that directly or indirectly in 
  4.22  combination with the corporation own more than 1,500 acres of 
  4.23  agricultural land. 
  4.24     (f) (g) "Agricultural land" means real estate used for 
  4.25  farming or capable of being used for farming in this state. 
  4.26     (g) (h) "Pension or investment fund" means a pension or 
  4.27  employee welfare benefit fund, however organized, a mutual fund, 
  4.28  a life insurance company separate account, a common trust of a 
  4.29  bank or other trustee established for the investment and 
  4.30  reinvestment of money contributed to it, a real estate 
  4.31  investment trust, or an investment company as defined in United 
  4.32  States Code, title 15, section 80a-3.  
  4.33     (h) (i) "Farm homestead" means a house including adjoining 
  4.34  buildings that has been used as part of a farming operation or 
  4.35  is part of the agricultural land used for a farming operation. 
  4.36     (i) (j) "Family farm partnership" means a limited 
  5.1   partnership formed for the purpose of farming and the ownership 
  5.2   of agricultural land in which the majority of the interests in 
  5.3   the partnership is held by and the majority of the partners are 
  5.4   persons or, the spouses of persons, or current beneficiaries of 
  5.5   one or more family farm trusts in which the trustee holds an 
  5.6   interest in a family farm partnership related to each other 
  5.7   within the third degree of kindred according to the rules of the 
  5.8   civil law, at least one of the related persons is residing on or 
  5.9   the farm, actively operating the farm, or the agricultural land 
  5.10  was owned by one or more of the related persons for a period of 
  5.11  five years before its transfer to the limited partnership, and 
  5.12  none of the partners are corporations.  A family farm 
  5.13  partnership does not cease to qualify as a family farm 
  5.14  partnership because of a devise or bequest: 
  5.15     (1) transfer of a partnership interest in the 
  5.16  partnership to a person or spouse of a person related within the 
  5.17  third degree of kindred according to the rules of civil law to 
  5.18  the person making the transfer or to a family farm trust of 
  5.19  which the partner, spouse, or related person is a current 
  5.20  beneficiary; or 
  5.21     (2) distribution from a family farm trust of a partnership 
  5.22  interest to a beneficiary related within the third degree of 
  5.23  kindred according to the rules of civil law to a majority of the 
  5.24  current beneficiaries of the trust, or to a family farm trust of 
  5.25  which the partner, spouse, or related person is a current 
  5.26  beneficiary. 
  5.27     For the purposes of this section, a transfer may be made 
  5.28  with or without consideration, either directly or indirectly, 
  5.29  during life or at death, whether or not in trust, of a 
  5.30  partnership interest in the family farm partnership, and 
  5.31  interest owned by a family farm trust is considered to be owned 
  5.32  in equal shares by the current beneficiaries. 
  5.33     (j) (k) "Authorized farm partnership" means a limited 
  5.34  partnership meeting the following standards:  
  5.35     (1) it has been issued a certificate from the secretary of 
  5.36  state or is registered with the county recorder and farming and 
  6.1   ownership of agricultural land is stated as a purpose or 
  6.2   character of the business; 
  6.3      (2) no more than five partners; 
  6.4      (3) all its partners, other than any estate, are natural 
  6.5   persons; 
  6.6      (4) its revenue from rent, royalties, dividends, interest, 
  6.7   and annuities do not exceed 20 percent of its gross receipts; 
  6.8      (5) its general partners hold at least 51 percent of the 
  6.9   interest in the land assets of the partnership and reside on the 
  6.10  farm or are actively engaging in farming not more than 1,500 
  6.11  acres as a general partner in an authorized limited partnership; 
  6.12     (6) its limited partners do not participate in the business 
  6.13  of the limited partnership including operating, managing, or 
  6.14  directing management of farming operations; 
  6.15     (7) it does not, directly or indirectly, own or otherwise 
  6.16  have an interest in any title to more than 1,500 acres of 
  6.17  agricultural land; and 
  6.18     (8) none of its limited partners are limited partners in 
  6.19  other authorized farm partnerships that directly or indirectly 
  6.20  in combination with the partnership own more than 1,500 acres of 
  6.21  agricultural land.  
  6.22     (l) "Family farm limited liability company" means a limited 
  6.23  liability company founded for the purpose of farming and the 
  6.24  ownership of agricultural land in which the majority of the 
  6.25  membership interests are held by and the majority of the members 
  6.26  are persons or the spouses of persons related to each other 
  6.27  within the third degree of kindred according to the rules of the 
  6.28  civil law, at least one of the related persons is residing on 
  6.29  and actively operating the farm, and none of the members are 
  6.30  corporations or limited liability companies.  A family farm 
  6.31  limited liability company does not cease to qualify as a family 
  6.32  farm limited liability company because of: 
  6.33     (1) a transfer of a membership interest to a person or 
  6.34  spouse of a person related within the third degree of kindred 
  6.35  according to the rules of civil law to the person making the 
  6.36  transfer or to a family farm trust of which the member, spouse, 
  7.1   or related person is a current beneficiary; or 
  7.2      (2) distribution from a family farm trust of a membership 
  7.3   interest to a beneficiary related within the third degree of 
  7.4   kindred according to the rules of civil law to a majority of the 
  7.5   current beneficiaries of the trust, or to a family farm trust of 
  7.6   which the member, spouse, or related person is a current 
  7.7   beneficiary. 
  7.8      For the purposes of this section, a transfer may be made 
  7.9   with or without consideration, either directly or indirectly, 
  7.10  during life or at death, whether or not in trust, of a 
  7.11  membership interest in the family farm limited liability 
  7.12  company, and interest owned by a family farm trust is considered 
  7.13  to be owned in equal shares by the current beneficiaries. A 
  7.14  member of a family farm limited liability company may not 
  7.15  transfer a membership interest, including a financial interest, 
  7.16  to a person who is not otherwise eligible to be a member under 
  7.17  this paragraph. 
  7.18     (m) "Authorized farm limited liability company" means a 
  7.19  limited liability company meeting the following standards: 
  7.20     (1) it has no more than five members; 
  7.21     (2) all its members, other than any estate, are natural 
  7.22  persons; 
  7.23     (3) it does not have more than one class of membership 
  7.24  interests; 
  7.25     (4) its revenue from rent, royalties, dividends, interest, 
  7.26  and annuities does not exceed 20 percent of its gross receipts; 
  7.27     (5) members holding 51 percent or more of both the 
  7.28  governance rights and financial rights in the limited liability 
  7.29  company reside on the farm and are actively engaged in farming; 
  7.30     (6) it does not, directly or indirectly, own or otherwise 
  7.31  have an interest in any title to more than 1,500 acres of 
  7.32  agricultural land; and 
  7.33     (7) none of its members are members in other authorized 
  7.34  farm limited liability companies that directly or indirectly in 
  7.35  combination with the authorized farm limited liability company 
  7.36  own more than 1,500 acres of agricultural land. 
  8.1      A member of an authorized farm limited liability company 
  8.2   may not transfer a membership interest, including a financial 
  8.3   interest, to a person who is not otherwise eligible to be a 
  8.4   member under this paragraph. 
  8.5      (k) (n) "Farmer" means a natural person who regularly 
  8.6   participates in physical labor or operations management in the 
  8.7   person's farming operation and files "Schedule F" as part of the 
  8.8   person's annual Form 1040 filing with the United States Internal 
  8.9   Revenue Service. 
  8.10     (l) (o) "Actively engaged in livestock production" means 
  8.11  performing day-to-day physical labor or day-to-day operations 
  8.12  management that significantly contributes to livestock 
  8.13  production and the functioning of a livestock operation. 
  8.14     (m) (p) "Research or experimental farm" means a 
  8.15  corporation, limited partnership, or pension, limited liability 
  8.16  company, or investment fund that owns or operates agricultural 
  8.17  land for research or experimental purposes, provided that any 
  8.18  commercial sales from the operation are incidental to the 
  8.19  research or experimental objectives of the corporation.  A 
  8.20  corporation, limited partnership, limited liability company, or 
  8.21  pension or investment fund seeking initial approval by the 
  8.22  commissioner to operate agricultural land for research or 
  8.23  experimental purposes must first submit to the commissioner a 
  8.24  prospectus or proposal of the intended method of operation 
  8.25  containing information required by the commissioner including a 
  8.26  copy of any operational contract with individual participants. 
  8.27     (n) (q) "Breeding stock farm" means a corporation or, 
  8.28  limited partnership, or limited liability company, that owns or 
  8.29  operates agricultural land for the purpose of raising breeding 
  8.30  stock, including embryos, for resale to farmers or for the 
  8.31  purpose of growing seed, wild rice, nursery plants, or sod.  An 
  8.32  entity that is organized to raise livestock other than dairy 
  8.33  cattle under this paragraph that does not qualify as an 
  8.34  authorized farm corporation must:  
  8.35     (1) sell all castrated animals to be fed out or finished to 
  8.36  farming operations that are neither directly nor indirectly 
  9.1   owned by the business entity operating the breeding stock 
  9.2   operation; and 
  9.3      (2) report its total production and sales annually to the 
  9.4   commissioner.  
  9.5      (o) (r) "Aquatic farm" means a corporation or, limited 
  9.6   partnership, or limited liability company, that owns or leases 
  9.7   agricultural land as a necessary part of an aquatic farm as 
  9.8   defined in section 17.47, subdivision 3.  
  9.9      (p) (s) "Religious farm" means a corporation formed 
  9.10  primarily for religious purposes whose sole income is derived 
  9.11  from agriculture.  
  9.12     (q) (t) "Utility corporation" means a corporation regulated 
  9.13  under Minnesota Statutes 1974, chapter 216B, that owns 
  9.14  agricultural land for purposes described in that chapter, or an 
  9.15  electric generation or transmission cooperative that owns 
  9.16  agricultural land for use in its business if the land is not 
  9.17  used for farming except under lease to a family farm unit, a 
  9.18  family farm corporation, or a family farm trust, a family farm 
  9.19  partnership, or a family farm limited liability company.  
  9.20     (r) "Benevolent trust" means a pension fund or family trust 
  9.21  established by the owners of a family farm, authorized farm 
  9.22  corporation, authorized livestock farm corporation, or family 
  9.23  farm corporation that holds an interest in title to agricultural 
  9.24  land on which one or more of those owners or shareholders have 
  9.25  resided or have been actively engaged in farming as required by 
  9.26  paragraph (b), (c), (d), or (e). 
  9.27     (s) (u) "Development organization" means a corporation, 
  9.28  limited partnership, limited liability company, or pension or 
  9.29  investment fund that owns has an interest in agricultural land 
  9.30  for which the corporation, limited partnership, limited 
  9.31  liability company, or pension or investment fund has documented 
  9.32  plans to use and subsequently uses the land within six years 
  9.33  from the date of purchase for a specific nonfarming purpose, or 
  9.34  if the land is zoned nonagricultural, or if the land is located 
  9.35  within an incorporated area.  A corporation, limited 
  9.36  partnership, limited liability company, or pension or investment 
 10.1   fund may hold agricultural land in the amount necessary for its 
 10.2   nonfarm business operation; provided, however, that pending the 
 10.3   development of agricultural land for nonfarm purposes, the land 
 10.4   may not be used for farming except under lease to a family farm 
 10.5   unit, a family farm corporation, a family farm trust, an 
 10.6   authorized farm corporation, an authorized livestock farm 
 10.7   corporation, a family farm partnership, or an authorized farm 
 10.8   partnership, a family farm limited liability company, or an 
 10.9   authorized farm limited liability company, or except when 
 10.10  controlled through ownership, options, leaseholds, or other 
 10.11  agreements by a corporation that has entered into an agreement 
 10.12  with the United States under the New Community Act of 1968 
 10.13  (Title IV of the Housing and Urban Development Act of 1968, 
 10.14  United States Code, title 42, sections 3901 to 3914) as amended, 
 10.15  or a subsidiary or assign of such a corporation.  
 10.16     (t) (v) "Exempt land" means agricultural land owned or 
 10.17  leased by a corporation as of May 20, 1973, agricultural land 
 10.18  owned or leased by a pension or investment fund as of May 12, 
 10.19  1981, or agricultural land owned or leased by a limited 
 10.20  partnership as of May 1, 1988, or agricultural land owned or 
 10.21  leased by a trust as of the effective date of this act, 
 10.22  including the normal expansion of that ownership at a rate not 
 10.23  to exceed 20 percent of the amount of land owned as of May 20, 
 10.24  1973, for a corporation; May 12, 1981, for a pension or 
 10.25  investment fund; or May 1, 1988, for a limited partnership, or 
 10.26  the effective date of this act for a trust, measured in acres, 
 10.27  in any five-year period, and including additional ownership 
 10.28  reasonably necessary to meet the requirements of pollution 
 10.29  control rules.  A corporation, limited partnership, or pension 
 10.30  or investment fund that is eligible to own or lease agricultural 
 10.31  land under this section prior to May 1997, or a corporation that 
 10.32  is eligible to own or lease agricultural land as a benevolent 
 10.33  trust under this section prior to the effective date of this 
 10.34  act, may continue to own or lease agricultural land subject to 
 10.35  the same conditions and limitations as previously allowed.  
 10.36     (u) (w) "Gifted land" means agricultural land acquired as a 
 11.1   gift, either by grant or devise, by an educational, religious, 
 11.2   or charitable nonprofit corporation, limited 
 11.3   partnership, limited liability company, or pension or investment 
 11.4   fund if all land so acquired is disposed of within ten years 
 11.5   after acquiring the title.  
 11.6      (v) (x) "Repossessed land" means agricultural land acquired 
 11.7   by a corporation, limited partnership, limited liability 
 11.8   company, or pension or investment fund by process of law in the 
 11.9   collection of debts, or by any procedure for the enforcement of 
 11.10  a lien or claim on the land, whether created by mortgage or 
 11.11  otherwise if all land so acquired is disposed of within five 
 11.12  years after acquiring the title.  The five-year limitation is a 
 11.13  covenant running with the title to the land against any grantee, 
 11.14  assignee, or successor of the pension or investment fund, 
 11.15  corporation, or limited partnership, or limited liability 
 11.16  company.  The land so acquired must not be used for farming 
 11.17  during the five-year period, except under a lease to a family 
 11.18  farm unit, a family farm corporation, an authorized farm 
 11.19  corporation, an authorized livestock farm corporation, a family 
 11.20  farm partnership, or an authorized farm partnership, a family 
 11.21  farm limited liability company, or an authorized farm limited 
 11.22  liability company.  Notwithstanding the five-year divestiture 
 11.23  requirement under this paragraph, a financial institution may 
 11.24  continue to own the agricultural land if the agricultural land 
 11.25  is leased to the immediately preceding former owner, but must 
 11.26  dispose of the agricultural land within ten years of acquiring 
 11.27  the title.  Livestock acquired by a pension or investment fund, 
 11.28  corporation, or limited partnership, or limited liability 
 11.29  company in the collection of debts, or by a procedure for the 
 11.30  enforcement of lien or claim on the livestock whether created by 
 11.31  security agreement or otherwise after August 1, 1994, must be 
 11.32  sold or disposed of within one full production cycle for the 
 11.33  type of livestock acquired or 18 months after the livestock is 
 11.34  acquired, whichever is later earlier.  
 11.35     (w) (y) "Commissioner" means the commissioner of 
 11.36  agriculture.  
 12.1      (x) (z) "Demonstration "Nonprofit corporation" means a 
 12.2   nonprofit corporation organized under state nonprofit 
 12.3   corporation law and formed primarily for the purpose of 
 12.4   demonstrating historical farming practices or qualified for 
 12.5   tax-exempt status under federal tax law that uses the land for a 
 12.6   specific nonfarming purpose or leases the agricultural land to a 
 12.7   family farm unit, a family farm corporation, an authorized farm 
 12.8   corporation, an authorized livestock farm corporation, a family 
 12.9   farm partnership, or an authorized farm partnership. 
 12.10     (aa) "Current beneficiary" means a person who at any time 
 12.11  during a year is entitled to, or at the discretion of any person 
 12.12  may, receive a distribution from the income or principal of the 
 12.13  trust.  It does not include a distributee trust, other than a 
 12.14  trust described in section 170(c) of the Internal Revenue Code, 
 12.15  as amended, but does include the current beneficiaries of the 
 12.16  distributee trust.  It does not include a person in whose favor 
 12.17  a power of appointment could be exercised until the holder of 
 12.18  the power of appointment actually exercises the power of 
 12.19  appointment in that person's favor.  It does not include a 
 12.20  person who is entitled to receive a distribution only after a 
 12.21  specified time or upon the occurrence of a specified event until 
 12.22  the time or occurrence of the event.  For the purposes of this 
 12.23  section, a distributee trust is a current beneficiary of a 
 12.24  family farm trust. 
 12.25     (bb) "De minimis" means that any corporation, pension or 
 12.26  investment fund, or limited partnership that directly or 
 12.27  indirectly owns, acquires, or otherwise obtains any interest in 
 12.28  40 acres or less of agricultural land and annually receives less 
 12.29  than $150 per acre in gross revenue from rental or agricultural 
 12.30  production. 
 12.31     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 12.32  500.24, subdivision 3, is amended to read: 
 12.33     Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
 12.34  CORPORATIONS RESTRICTED.] (a) No corporation, limited liability 
 12.35  company, pension or investment fund, trust, or limited 
 12.36  partnership shall engage in farming; nor shall any corporation, 
 13.1   limited liability company, pension or investment fund, trust, or 
 13.2   limited partnership, directly or indirectly, own, acquire, or 
 13.3   otherwise obtain any interest, in agricultural land other than a 
 13.4   bona fide encumbrance taken for purposes of security.  This 
 13.5   subdivision does not apply to general partnerships.  This 
 13.6   subdivision does not apply to any agricultural land, 
 13.7   corporation, limited partnership, trust, or pension or 
 13.8   investment fund that meet any of the definitions in subdivision 
 13.9   2, paragraphs (b) to (e) (f), (i), (j) to (m), (m) to 
 13.10  (v) (p) to (x), and (x) (z), and (bb), has a conservation plan 
 13.11  prepared for the agricultural land, and reports as required 
 13.12  under subdivision 4.  
 13.13     (b) A corporation, pension or investment fund, trust, or 
 13.14  limited partnership that cannot meet any of the definitions in 
 13.15  subdivision 2, paragraphs (b) to (f), (j) to (m), (p) to (x), 
 13.16  (z), and (bb), may petition the commissioner for an exemption 
 13.17  from this subdivision.  The commissioner may issue an exemption 
 13.18  if the entity meets the following criteria: 
 13.19     (1) the exemption would not contradict the purpose of this 
 13.20  section; and 
 13.21     (2) the petitioning entity would not have a significant 
 13.22  impact upon the agriculture industry and the economy. 
 13.23     The commissioner shall review annually each entity that is 
 13.24  issued an exemption under this paragraph to ensure that the 
 13.25  entity continues to meet the criteria in clauses (1) and (2).  
 13.26  If an entity fails to meet the criteria, the commissioner shall 
 13.27  withdraw the exemption and the entity is subject to enforcement 
 13.28  proceedings under subdivision 5.  The commissioner shall submit 
 13.29  a report with a list of each entity that is issued an exemption 
 13.30  under this paragraph to the chairs of the senate and house 
 13.31  agricultural policy committees by October 1 of each year. 
 13.32     Sec. 3.  Minnesota Statutes 1998, section 500.24, 
 13.33  subdivision 3a, is amended to read: 
 13.34     Subd. 3a.  [LEASE AGREEMENT; CONSERVATION PRACTICE 
 13.35  PROTECTION CLAUSE.] A corporation, pension or investment fund, 
 13.36  or limited partnership, or limited liability company other than 
 14.1   a family farm corporation, an authorized farm corporation, an 
 14.2   authorized livestock farm corporation, a family farm 
 14.3   partnership, or an authorized farm partnership those meeting any 
 14.4   of the definitions in subdivision 2, paragraphs (c) to (f) or 
 14.5   (j) to (m), when leasing farm land to a family farm unit, a 
 14.6   family farm corporation, an authorized farm corporation, an 
 14.7   authorized livestock farm corporation, a family farm 
 14.8   partnership, or an authorized farm partnership, a family farm 
 14.9   limited liability company, or an authorized farm limited 
 14.10  liability company, under provisions of subdivision 2, paragraph 
 14.11  (v) (x), must include within the lease agreement a provision 
 14.12  prohibiting intentional damage or destruction to a conservation 
 14.13  practice on the agricultural land. 
 14.14     Sec. 4.  Minnesota Statutes 1998, section 500.24, 
 14.15  subdivision 3b, is amended to read: 
 14.16     Subd. 3b.  [PROTECTION OF CONSERVATION PRACTICES.] A 
 14.17  corporation, pension or investment fund, or limited partnership, 
 14.18  or limited liability company other than a family farm 
 14.19  corporation, an authorized farm corporation, an authorized 
 14.20  livestock farm corporation, a family farm partnership, or 
 14.21  authorized farm partnership those meeting any of the definitions 
 14.22  in subdivision 2, paragraphs (c) to (f) or (j) to (m), which, 
 14.23  during the period of time it holds agricultural land under 
 14.24  subdivision 2, paragraph (v) (x), intentionally destroys a 
 14.25  conservation practice as defined in section 103F.401, 
 14.26  subdivision 3, to which the state has made a financial 
 14.27  contribution, must pay the commissioner, for deposit in the 
 14.28  general fund, an amount equal to the state's total contributions 
 14.29  to that conservation practice plus interest from the time of 
 14.30  investment in the conservation practice.  Interest must be 
 14.31  calculated at an annual percentage rate of 12 percent. 
 14.32     Sec. 5.  Minnesota Statutes 1998, section 500.24, 
 14.33  subdivision 4, is amended to read: 
 14.34     Subd. 4.  [REPORTS.] (a) The chief executive officer of 
 14.35  every pension or investment fund, corporation, or limited 
 14.36  partnership, limited liability company, or entity that is 
 15.1   seeking to qualify for an exemption from the commissioner, and 
 15.2   the trustee of a family farm trust that holds any interest in 
 15.3   agricultural land or land used for the breeding, feeding, 
 15.4   pasturing, growing, or raising of livestock, dairy or poultry, 
 15.5   or products thereof, or land used for the production of 
 15.6   agricultural crops or fruit or other horticultural products, 
 15.7   other than a bona fide encumbrance taken for purposes of 
 15.8   security, or which is engaged in farming or proposing to 
 15.9   commence farming in this state after May 20, 1973, shall file 
 15.10  with the commissioner a report containing the following 
 15.11  information and documents: 
 15.12     (1) the name of the pension or investment fund, 
 15.13  corporation, or limited partnership, or limited liability 
 15.14  company and its place of incorporation, certification, or 
 15.15  registration; 
 15.16     (2) the address of the pension or investment plan 
 15.17  headquarters or of the registered office of the corporation in 
 15.18  this state, the name and address of its registered agent in this 
 15.19  state and, in the case of a foreign corporation or, limited 
 15.20  partnership, or limited liability company, the address of its 
 15.21  principal office in its place of incorporation, certification, 
 15.22  or registration; 
 15.23     (3) the acreage and location listed by quarter-quarter 
 15.24  section, township, and county of each lot or parcel of 
 15.25  agricultural land or land used for the keeping or feeding of 
 15.26  poultry in this state owned or leased by the pension or 
 15.27  investment fund, limited partnership, or corporation, or limited 
 15.28  liability company; 
 15.29     (4) the names and addresses of the officers, 
 15.30  administrators, directors, or trustees of the pension or 
 15.31  investment fund, or of the officers, shareholders owning more 
 15.32  than ten percent of the stock, including the percent of stock 
 15.33  owned by each such shareholder, and the members of the board of 
 15.34  directors of the corporation, and the members of the limited 
 15.35  liability company, and the general and limited partners and the 
 15.36  percentage of interest in the partnership by each partner; 
 16.1      (5) the farm products which the pension or investment fund, 
 16.2   limited partnership, or corporation, or limited liability 
 16.3   company produces or intends to produce on its agricultural land; 
 16.4      (6) with the first report, a copy of the title to the 
 16.5   property where the farming operations are or will occur 
 16.6   indicating the particular exception claimed under subdivision 3; 
 16.7   and 
 16.8      (7) with the first or second report, a copy of the 
 16.9   conservation plan proposed by the soil and water conservation 
 16.10  district, and with subsequent reports a statement of whether the 
 16.11  conservation plan was implemented. 
 16.12     The report of a corporation, trust, limited liability 
 16.13  company, or partnership seeking to qualify hereunder as a family 
 16.14  farm corporation, an authorized farm corporation, an authorized 
 16.15  livestock farm corporation, a family farm partnership, or an 
 16.16  authorized farm partnership, a family farm limited liability 
 16.17  company, an authorized farm limited liability company, or a 
 16.18  family farm trust or under an exemption from the commissioner 
 16.19  shall contain the following additional information:  the number 
 16.20  of shares or the, partnership interests, or governance and 
 16.21  financial rights owned by persons or current beneficiaries of a 
 16.22  family farm trust residing on the farm or actively engaged in 
 16.23  farming, or their relatives within the third degree of kindred 
 16.24  according to the rules of the civil law or their spouses; the 
 16.25  name, address, and number of shares owned by each 
 16.26  shareholder or, partnership interests owned by each partner; or 
 16.27  governance and financial rights owned by each member, and a 
 16.28  statement as to percentage of gross receipts of the corporation 
 16.29  derived from rent, royalties, dividends, interest, and 
 16.30  annuities.  No pension or investment fund, limited 
 16.31  partnership, or corporation, or limited liability company shall 
 16.32  commence farming in this state until the commissioner has 
 16.33  inspected the report and certified that its proposed operations 
 16.34  comply with the provisions of this section. 
 16.35     (b) Every pension or investment fund, limited 
 16.36  partnership, trust, or corporation, or limited liability company 
 17.1   as described in paragraph (a) shall, prior to April 15 of each 
 17.2   year, file with the commissioner a report containing the 
 17.3   information required in paragraph (a), based on its operations 
 17.4   in the preceding calendar year and its status at the end of the 
 17.5   year.  A pension or investment fund, limited partnership, or 
 17.6   corporation, or limited liability company that does not file the 
 17.7   report by April 15 must pay a $500 civil penalty.  The penalty 
 17.8   is a lien on the land being farmed under subdivision 3 until the 
 17.9   penalty is paid. 
 17.10     (c) The commissioner may, for good cause shown, issue a 
 17.11  written waiver or reduction of the civil penalty for failure to 
 17.12  make a timely filing of the annual report required by this 
 17.13  subdivision.  The waiver or reduction is final and conclusive 
 17.14  with respect to the civil penalty, and may not be reopened or 
 17.15  modified by an officer, employee, or agent of the state, except 
 17.16  upon a showing of fraud or malfeasance or misrepresentation of a 
 17.17  material fact.  The report required under paragraph (b) must be 
 17.18  completed prior to a reduction or waiver under this paragraph.  
 17.19  The commissioner may enter into an agreement under this 
 17.20  paragraph only once for each corporation or partnership. 
 17.21     (d) Failure to file a required report or the willful filing 
 17.22  of false information is a gross misdemeanor. 
 17.23     Sec. 6.  Minnesota Statutes 1998, section 500.24, 
 17.24  subdivision 5, is amended to read: 
 17.25     Subd. 5.  [ENFORCEMENT.] With reason to believe that a 
 17.26  corporation, limited partnership, limited liability company, 
 17.27  trust, or pension or investment fund is violating subdivision 3, 
 17.28  the attorney general shall commence an action in the district 
 17.29  court in which any agricultural lands relative to such violation 
 17.30  are situated, or if situated in two or more counties, in any 
 17.31  county in which a substantial part of the lands are situated.  
 17.32  The attorney general shall file for record with the county 
 17.33  recorder or the registrar of titles of each county in which any 
 17.34  portion of said lands are located a notice of the pendency of 
 17.35  the action as provided in section 557.02.  If the court finds 
 17.36  that the lands in question are being held in violation of 
 18.1   subdivision 3, it shall enter an order so declaring.  The 
 18.2   attorney general shall file for record any such order with the 
 18.3   county recorder or the registrar of titles of each county in 
 18.4   which any portion of said lands are located.  Thereafter, the 
 18.5   pension or investment fund, limited partnership, or corporation 
 18.6   owning such land shall have a period of five years from the date 
 18.7   of such order to divest itself of such lands.  The 
 18.8   aforementioned five-year limitation period shall be deemed a 
 18.9   covenant running with the title to the land against any pension 
 18.10  or investment fund, limited partnership, or corporate grantee or 
 18.11  assignee or the successor of such pension or investment fund, 
 18.12  limited partnership, or corporation.  Any lands not so divested 
 18.13  within the time prescribed shall be sold at public sale in the 
 18.14  manner prescribed by law for the foreclosure of a mortgage by 
 18.15  action.  In addition, any prospective or threatened violation 
 18.16  may be enjoined by an action brought by the attorney general in 
 18.17  the manner provided by law. 
 18.18     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 18.19  500.245, subdivision 1, is amended to read: 
 18.20     Subdivision 1.  [DISPOSAL OF LAND.] (a) A state or federal 
 18.21  agency, limited partnership, or a corporation, or limited 
 18.22  liability company may not lease or sell agricultural land or a 
 18.23  farm homestead before offering or making a good faith effort to 
 18.24  offer the land for sale or lease to the immediately preceding 
 18.25  former owner at a price no higher than the highest price offered 
 18.26  by a third party that is acceptable to the seller or lessor.  
 18.27  The offer must be made on the notice to offer form under 
 18.28  subdivision 2.  The requirements of this subdivision do not 
 18.29  apply to a sale or lease by a corporation that is a family farm 
 18.30  corporation or an authorized farm corporation or to a sale or 
 18.31  lease by the commissioner of agriculture of property acquired by 
 18.32  the state under the family farm security program under chapter 
 18.33  41.  This subdivision applies only to a sale or lease when the 
 18.34  seller or lessor acquired the property by enforcing a debt 
 18.35  against the agricultural land or farm homestead, including 
 18.36  foreclosure of a mortgage, accepting a deed in lieu of 
 19.1   foreclosure, terminating a contract for deed, or accepting a 
 19.2   deed in lieu of terminating a contract for deed.  Selling or 
 19.3   leasing property to a third party at a price is prima facie 
 19.4   evidence that the price is acceptable to the seller or lessor.  
 19.5   The seller must provide written notice to the immediately 
 19.6   preceding former owner that the agricultural land or farm 
 19.7   homestead will be offered for sale at least 14 days before the 
 19.8   agricultural land or farm homestead is offered for sale.  
 19.9      (b) An immediately preceding former owner is the entity 
 19.10  with record legal title to the agricultural land or farm 
 19.11  homestead before acquisition by the state or federal agency or 
 19.12  corporation except:  if the immediately preceding former owner 
 19.13  is a bankruptcy estate, the debtor in bankruptcy is the 
 19.14  immediately preceding former owner; and if the agricultural land 
 19.15  or farm homestead was acquired by termination of a contract for 
 19.16  deed or deed in lieu of termination of a contract for deed, the 
 19.17  immediately preceding former owner is the purchaser under the 
 19.18  contract for deed.  For purposes of this subdivision, only a 
 19.19  family farm, family farm corporation, or family farm partnership 
 19.20  or family farm limited liability company can be an immediately 
 19.21  preceding former owner. 
 19.22     (c) An immediately preceding former owner may elect to 
 19.23  purchase or lease the entire property or an agreed to portion of 
 19.24  the property.  If the immediately preceding former owner elects 
 19.25  to purchase or lease a portion of the property, the election 
 19.26  must be reported in writing to the seller or lessor prior to the 
 19.27  time the property is first offered for sale or lease.  If 
 19.28  election is made to purchase or lease a portion of the property, 
 19.29  the portion must be contiguous and compact so that it does not 
 19.30  unreasonably reduce access to or the value of the remaining 
 19.31  property. 
 19.32     (d) For purposes of this subdivision, the term "a price no 
 19.33  higher than the highest price offered by a third party" means 
 19.34  the acceptable cash price offered by a third party or the 
 19.35  acceptable time-price offer made by a third party.  A cash price 
 19.36  offer is one that involves simultaneous transfer of title for 
 20.1   payment of the entire amount of the offer.  If the acceptable 
 20.2   offer made by a third party is a time-price offer, the seller or 
 20.3   lessor must make the same time-price offer or an equivalent cash 
 20.4   offer to the immediately preceding former owner.  An equivalent 
 20.5   cash offer is equal to the total of the payments made over a 
 20.6   period of the time-price offer discounted by yield curve of the 
 20.7   United States treasury notes and bonds of similar maturity on 
 20.8   the first business day of the month in which the offer is 
 20.9   personally delivered or mailed for time periods similar to the 
 20.10  time period covered by the time-price offer, plus 2.0 percent.  
 20.11  A time-price offer is an offer that is financed entirely or 
 20.12  partially by the seller and includes an offer to purchase under 
 20.13  a contract for deed or mortgage.  An equivalent cash offer is 
 20.14  not required to be made if the state participates in an offer to 
 20.15  a third party through the rural finance authority. 
 20.16     (e) This subdivision applies to a seller when the property 
 20.17  is sold and to a lessor each time the property is leased, for 
 20.18  the time period specified in section 500.24, subdivision 2, 
 20.19  paragraph (v), after the agricultural land is acquired except:  
 20.20     (1) an offer to lease to the immediately preceding former 
 20.21  owner is required only until the immediately preceding owner 
 20.22  fails to accept an offer to lease the property or the property 
 20.23  is sold; 
 20.24     (2) an offer to sell to the immediately preceding former 
 20.25  owner is required until the property is sold; and 
 20.26     (3) if the immediately preceding former owner elects to 
 20.27  lease or purchase a portion of the property, this subdivision 
 20.28  does not apply to the seller with regard to the balance of the 
 20.29  property after the election is made under paragraph (c).  
 20.30     (f) The notice of an offer under subdivision 2 that is 
 20.31  personally delivered with a signed receipt or sent by certified 
 20.32  mail with a receipt of mailing to the immediately preceding 
 20.33  former owner's last known address is a good faith offer.  
 20.34     (g) This subdivision does not apply to a sale or lease that 
 20.35  occurs after the seller or lessor has held the property for the 
 20.36  time period specified in section 500.24, subdivision 2, 
 21.1   paragraph (v).  
 21.2      (h) For purposes of this subdivision, if the immediately 
 21.3   preceding former owner is a bankruptcy estate the debtor in the 
 21.4   bankruptcy is the immediately preceding owner.  
 21.5      (i) The immediately preceding former owner must exercise 
 21.6   the right to lease all or a portion of the agricultural land or 
 21.7   a homestead located on agricultural land in writing within 15 
 21.8   days after an offer to lease under this subdivision is mailed 
 21.9   with a receipt of mailing or personally delivered.  If election 
 21.10  is made to lease only the homestead or a portion of the 
 21.11  agricultural land, the portion to be leased must be clearly 
 21.12  identified in writing.  The immediately preceding former owner 
 21.13  must exercise the right to buy the agricultural land, a portion 
 21.14  of the agricultural land, or a farm homestead located on 
 21.15  agricultural land, in writing, within 65 days after an offer to 
 21.16  buy under this subdivision is mailed with a receipt of mailing 
 21.17  or is personally delivered.  Within ten days after exercising 
 21.18  the right to lease or buy by accepting the offer, the 
 21.19  immediately preceding owner must fully perform according to the 
 21.20  terms of the offer including paying the amounts due.  A seller 
 21.21  may sell and a lessor may lease the agricultural land or farm 
 21.22  homestead subject to this subdivision to the third party in 
 21.23  accordance with their lease or purchase agreement if: 
 21.24     (1) the immediately preceding former owner does not accept 
 21.25  an offer to lease or buy before the offer terminates; or 
 21.26     (2) the immediately preceding former owner does not perform 
 21.27  the obligations of the offer, including paying the amounts due, 
 21.28  within ten days after accepting the offer. 
 21.29     (j) A certificate indicating whether or not the property 
 21.30  contains agricultural land or a farm homestead that is signed by 
 21.31  the county assessor where the property is located and recorded 
 21.32  in the office of the county recorder or the registrar of titles 
 21.33  where the property is located is prima facie evidence of whether 
 21.34  the property is agricultural land or a farm homestead. 
 21.35     (k) As prima facie evidence that an offer to sell or lease 
 21.36  agricultural land or a farm homestead has terminated, a receipt 
 22.1   of mailing the notice under subdivision 2 and an affidavit, 
 22.2   signed by a person authorized to act on behalf of a state, 
 22.3   federal agency, or corporation selling or leasing the 
 22.4   agricultural land or a farm homestead may be filed in the office 
 22.5   of the county recorder or registrar of titles of the county 
 22.6   where the agricultural land or farm homestead is located.  The 
 22.7   affidavit must state that: 
 22.8      (1) notice of an offer to buy or lease the agricultural 
 22.9   land or farm homestead was provided to the immediately preceding 
 22.10  former owner at a price not higher than the highest price 
 22.11  offered by a third party that is acceptable; 
 22.12     (2) the time during which the immediately preceding former 
 22.13  owner is required to exercise the right to buy or lease the 
 22.14  agricultural land or farm homestead has expired; 
 22.15     (3) the immediately preceding former owner has not 
 22.16  exercised the right to buy or lease the agricultural land or 
 22.17  farm homestead as provided in this subdivision or has accepted 
 22.18  an offer and has not fully performed according to the terms of 
 22.19  the offer; and 
 22.20     (4) the offer to the immediately preceding former owner has 
 22.21  terminated. 
 22.22     (l) The right of an immediately preceding former owner to 
 22.23  receive an offer to lease or purchase agricultural land under 
 22.24  this subdivision or to lease or purchase at a price no higher 
 22.25  than the highest price offered by a third party that is 
 22.26  acceptable to the seller or lessor may be extinguished or 
 22.27  limited by an express statement signed by the immediately 
 22.28  preceding owner that complies with the plain language 
 22.29  requirements of section 325G.31.  The right may not be 
 22.30  extinguished or limited except by: 
 22.31     (1) an express statement in a deed in lieu of foreclosure 
 22.32  of the agricultural land; 
 22.33     (2) an express statement in a deed in lieu of a termination 
 22.34  of a contract for deed for the agricultural land; 
 22.35     (3) an express statement conveying the right to the state 
 22.36  or federal agency or corporation owning the agricultural land 
 23.1   that is required to make an offer under this subdivision; 
 23.2   however, the preceding former owner may rescind the conveyance 
 23.3   by notifying the state or federal agency or corporation in 
 23.4   writing within 20 calendar days after signing the express 
 23.5   statement; 
 23.6      (4) to cure a title defect, an express statement conveying 
 23.7   the right may be made to a person to whom the agricultural land 
 23.8   has been transferred by the state or federal agency or 
 23.9   corporation; or 
 23.10     (5) an express statement conveying the right to a contract 
 23.11  for deed vendee to whom the agricultural land or farm homestead 
 23.12  was sold under a contract for deed by the immediately preceding 
 23.13  former owner if the express statement and the contract for deed 
 23.14  are recorded. 
 23.15     (m) The right of an immediately preceding former owner to 
 23.16  receive an offer to lease or purchase agricultural land under 
 23.17  this subdivision may not be assigned or transferred except as 
 23.18  provided in paragraph (l), but may be inherited.  
 23.19     (n) An immediately preceding former owner, except a former 
 23.20  owner who is actively engaged in farming as defined in section 
 23.21  500.24, subdivision 2, paragraph (a), and who agrees to remain 
 23.22  actively engaged in farming on a portion of the agricultural 
 23.23  land or farm homestead for at least one year after accepting an 
 23.24  offer under this subdivision, may not sell agricultural land 
 23.25  acquired by accepting an offer under this subdivision if the 
 23.26  arrangement of the sale was negotiated or agreed to prior to the 
 23.27  former owner accepting the offer under this subdivision.  A 
 23.28  person who sells property in violation of this paragraph is 
 23.29  liable for damages plus reasonable attorney fees to a person who 
 23.30  is damaged by a sale in violation of this paragraph.  There is a 
 23.31  rebuttable presumption that a sale by an immediately preceding 
 23.32  former owner is in violation of this paragraph if the sale takes 
 23.33  place within 270 days of the former owner accepting the offer 
 23.34  under this subdivision.  This paragraph does not apply to a sale 
 23.35  by an immediately preceding former owner to the owner's spouse, 
 23.36  the owner's parents, the owner's sisters and brothers, the 
 24.1   owner's spouse's sisters and brothers, or the owner's children. 
 24.2      Sec. 8.  Minnesota Statutes 1998, section 500.245, 
 24.3   subdivision 2, is amended to read: 
 24.4      Subd. 2.  [NOTICE OF OFFER.] (a) The state, a federal 
 24.5   agency, limited partnership, or a corporation, or limited 
 24.6   liability company subject to subdivision 1 must provide a notice 
 24.7   of an offer to sell or lease agricultural land substantially as 
 24.8   follows, after inserting the appropriate terms within the 
 24.9   parentheses: 
 24.10         "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND
 24.11  TO:       (...Immediately preceding former owner...)
 24.12  FROM:     (...The state, federal agency, limited
 24.13            partnership, or corporation, or limited
 24.14            liability company subject to
 24.15            subdivision 1...)
 24.16  DATE:     (...date notice is mailed or personally
 24.17            delivered...)
 24.18     (...The state, federal agency, limited partnership, or 
 24.19  corporation, or limited liability company...) HAS ACQUIRED THE 
 24.20  AGRICULTURAL LAND DESCRIBED BELOW AND HAS RECEIVED AN ACCEPTABLE 
 24.21  OFFER TO (LEASE, SELL) THE AGRICULTURAL LAND FROM ANOTHER 
 24.22  PARTY.  UNDER MINNESOTA STATUTES, SECTION 500.245, SUBDIVISION 
 24.23  1, AN OFFER FROM (...the state, federal agency, limited 
 24.24  partnership, or corporation, or limited liability company...) 
 24.25  MUST BE MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER 
 24.26  MADE BY ANOTHER PARTY. 
 24.27     THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY 
 24.28  (...approximate number of acres...) ACRES AND IS INFORMALLY 
 24.29  DESCRIBED AS FOLLOWS: 
 24.30     (Informal description of the agricultural land being 
 24.31  offered that reasonably describes the land.  This description 
 24.32  does not need to be a legal description.) 
 24.33     (...The state, federal agency, limited partnership, or 
 24.34  corporation, or limited liability company...) OFFERS TO (SELL, 
 24.35  LEASE) THE AGRICULTURAL LAND DESCRIBED ABOVE FOR A CASH PRICE OF 
 24.36  $(...cash price or equivalent cash price for lease and lease 
 25.1   period, or cash price or equivalent cash price for sale of 
 25.2   land...), WHICH IS NOT HIGHER THAN THE PRICE OFFERED BY ANOTHER 
 25.3   PARTY.  THE PRICE IS OFFERED ON THE FOLLOWING TERMS: 
 25.4                 (Terms, if any, of acceptable offer)
 25.5      IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the 
 25.6   state, federal agency, limited partnership, or corporation, or 
 25.7   limited liability company...) IN WRITING THAT YOU ACCEPT THE 
 25.8   OFFER OR SIGN UNDERNEATH THE FOLLOWING PARAGRAPH AND RETURN A 
 25.9   COPY OF THIS NOTICE BY (15 for a lease, 65 for a sale) DAYS 
 25.10  AFTER THIS NOTICE IS PERSONALLY DELIVERED OR MAILED TO YOU.  THE 
 25.11  OFFER IN THIS NOTICE TERMINATES ON (...date of termination - 15 
 25.12  days for lease and 65 days for sale after date of mailing or 
 25.13  personal delivery...) 
 25.14                        ACCEPTANCE OF OFFER 
 25.15     I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND 
 25.16  DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE.  AS 
 25.17  PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE 
 25.18  TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE 
 25.19  OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER.  I 
 25.20  UNDERSTAND THAT NEGOTIATING OR AGREEING TO AN ARRANGEMENT TO 
 25.21  SELL THE AGRICULTURAL LAND TO ANOTHER PERSON PRIOR TO ACCEPTING 
 25.22  THIS OFFER MAY BE A VIOLATION OF LAW AND I MAY BE LIABLE TO A 
 25.23  PERSON DAMAGED BY THE SALE. 
 25.24  
 25.25       .........................................
 25.26       Signature of Former Owner Accepting Offer 
 25.27  
 25.28       .........................................
 25.29       Date" 
 25.30                          IMPORTANT NOTICE
 25.31     ANY ACTION FOR THE RECOVERY OF THE AGRICULTURAL LAND 
 25.32  DESCRIBED ABOVE OR ANY ACTION FOR DAMAGES, EXCEPT FOR DAMAGES 
 25.33  FOR FRAUD, REGARDING THIS OFFER MUST BE COMMENCED BY A LAWSUIT 
 25.34  BEFORE THE EXPIRATION OF THREE YEARS AFTER THIS LAND IS SOLD TO 
 25.35  ANOTHER PARTY.  UPON FILING A LAWSUIT, YOU MUST ALSO FILE A 
 25.36  NOTICE OF LIS PENDENS WITH THE COUNTY RECORDER OR REGISTRAR OF 
 25.37  TITLES IN THE COUNTY WHERE THE LAND IS LOCATED. 
 26.1      (b) For an offer to sell, a copy of the purchase agreement 
 26.2   containing the price and terms of the highest offer made by a 
 26.3   third party that is acceptable to the seller and a signed 
 26.4   affidavit by the seller affirming that the purchase agreement is 
 26.5   true, accurate, and made in good faith must be included with the 
 26.6   notice under this subdivision.  At the seller's discretion, 
 26.7   reference to the third party's identity may be deleted from the 
 26.8   copy of the purchase agreement. 
 26.9      (c) For an offer to lease, a copy of the lease containing 
 26.10  the price and terms of the highest offer made by a third party 
 26.11  that is acceptable to the lessor and a signed affidavit by the 
 26.12  lessor affirming that the lease is true, accurate, and made in 
 26.13  good faith must be included with the notice under this 
 26.14  subdivision.  At the lessor's discretion, reference to the third 
 26.15  party's identity may be deleted from the copy of the lease 
 26.16  agreement. 
 26.17     (d) The affidavit under paragraphs (b) and (c) is subject 
 26.18  to section 609.48.