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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1985 

                         CHAPTER 80-H.F.No. 1570
           An act relating to agriculture; creating an exception 
          to the corporate farming law; amending Minnesota 
          Statutes 1984, section 500.24, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 500.24, 
subdivision 3, is amended to read: 
    Subd. 3.  [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY 
CORPORATIONS RESTRICTED.] No corporation or pension or 
investment fund shall engage in farming; nor shall any 
corporation or pension or investment fund, directly or 
indirectly, own, acquire, or otherwise obtain an interest, 
whether legal, beneficial or otherwise, in any title to real 
estate used for farming or capable of being used for farming in 
this state.  Provided, however, that the restrictions provided 
in this subdivision shall not apply to the following: 
    (a) A bona fide encumbrance taken for purposes of security; 
    (b) A family farm corporation or an authorized farm 
corporation as defined in subdivision 2; 
    (c) Agricultural land and land capable of being used for 
farming owned by a corporation as of May 20, 1973 or a pension 
or investment fund as of May 12, 1981 including the normal 
expansion of such ownership at a rate not to exceed 20 percent 
of the amount of land owned as of May 20, 1973, or, in the case 
of a pension or investment fund, as of May 12, 1981, measured in 
acres, in any five year period, and including additional 
ownership reasonably necessary to meet the requirements of 
pollution control regulations; 
     (d) Agricultural land operated for research or experimental 
purposes, provided that any commercial sales from such farm 
shall be incidental to the research or experimental objectives 
of the corporation; 
     (e) Agricultural land operated by a corporation for the 
purpose of raising breeding stock for resale to farmers or 
operated for the purpose of growing seed, wild rice, nursery 
plants or sod; 
     (f) Agricultural land and land capable of being used for 
farming leased by a corporation in an amount, measured in acres, 
not to exceed the acreage under lease to such corporation as of 
May 20, 1973 and the additional acreage required for normal 
expansion at a rate not to exceed 20 percent of the amount of 
land leased as of May 20, 1973 in any five year period, and the 
additional acreage reasonably necessary to meet the requirements 
of pollution control regulations; 
     (g) Agricultural land when acquired as a gift (either by 
grant or a devise) by an educational, religious or charitable 
non-profit corporation or by a pension or investment fund; 
provided that all lands so acquired by a pension or investment 
fund, and all lands so acquired by a corporation which are not 
operated for research or experimental purposes, or are not 
operated for the purpose of raising breeding stock for resale to 
farmers or operated for the purpose of growing seed, wild rice, 
nursery plants or sod must be disposed of within ten years after 
acquiring title thereto; 
     (h) Agricultural land acquired by a pension or investment 
fund or a corporation other than a family farm corporation or 
authorized farm corporation, as defined in subdivision 2, for 
which the corporation has documented plans to use and 
subsequently uses the land within six years from the date of 
purchase for a specific nonfarming purpose, or if the land is 
zoned nonagricultural, or if the land is located within an 
incorporated area.  A pension or investment fund or a 
corporation may hold such agricultural land in such acreage as 
may be necessary to its nonfarm business operation; provided, 
however, that pending the development of agricultural land for 
nonfarm purposes, such land may not be used for farming except 
under lease to a family farm unit, a family farm corporation or 
an authorized farm corporation, or except when controlled 
through ownership, options, leaseholds, or other agreements by a 
corporation which has entered into an agreement with the United 
States of America pursuant to the New Community Act of 1968 
(Title IV of the Housing and Urban Development Act of 1968, 42 
U.S.C. 3901-3914) as amended, or a subsidiary or assign of such 
a corporation; 
     (i) Agricultural lands acquired by a pension or investment 
fund or a corporation by process of law in the collection of 
debts, or by any procedure for the enforcement of a lien or 
claim thereon, whether created by mortgage or otherwise; 
provided, however, that all lands so acquired be disposed of 
within ten years after acquiring the title thereto, and further 
provided that the land so acquired shall not be used for farming 
during the ten year period except under a lease to a family farm 
unit, a family farm corporation or an authorized farm 
corporation.  The aforementioned ten year limitation period 
shall be deemed a covenant running with the title to the land 
against any pension or investment fund or corporate grantee or 
assignee or the successor of such pension or investment fund or 
corporation; 
     (j) Agricultural land acquired by a corporation regulated 
under the provisions of Minnesota Statutes 1974, Chapter 216B, 
for purposes described in that chapter or by an electric 
generation or transmission cooperative for use in its business, 
provided, however, that such land may not be used for farming 
except under lease to a family farm unit, or a family farm 
corporation; 
     (k) Agricultural land, either leased or owned, totaling no 
more than 2700 acres, acquired after May 20, 1973 for the 
purpose of replacing or expanding asparagus growing operations, 
provided that such corporation had established 2000 acres of 
asparagus production; 
     (l) All agricultural land or land capable of being used for 
farming which was owned or leased by an authorized farm 
corporation as defined in Minnesota Statutes 1974, Section 
500.24, Subdivision 1, Clause (d) but which does not qualify as 
an authorized farm corporation as defined in subdivision 2, 
clause (d); 
     (m) A corporation formed primarily for religious purposes 
whose sole income is derived from agriculture; 
     (n) Agricultural land owned or leased by a corporation 
prior to August 1, 1975, which was exempted from the restriction 
of subdivision 3 under the provisions of Laws 1973, Chapter 427, 
including normal expansion of such ownership or leasehold 
interest to be exercised at a rate not to exceed 20 percent of 
the amount of land owned or leased on August 1, 1975 in any five 
year period and the additional ownership reasonably necessary to 
meet requirements of pollution control regulations. 
     (o) Agricultural land owned or leased by a corporation 
prior to August 1, 1978, including normal expansion of such 
ownership or leasehold interest, to be exercised at a rate not 
to exceed 20 percent of the amount of land owned or leased on 
August 1, 1978 and the additional ownership reasonably necessary 
to meet requirements of pollution control regulations, provided 
that nothing herein shall reduce any exemption contained under 
the provisions of Laws 1975, Chapter 324, Section 1, Subdivision 
2.  
     (p) An interest in the title to agricultural land acquired 
by a pension fund or family trust established by the owners of a 
family farm, authorized farm corporation or family farm 
corporation, but limited to the farm on which one or more of 
those owners or shareholders have resided or have been actively 
engaged in farming as required by subdivision 2, clause (b), 
(c), or (d).  
    (q) Agricultural land owned by a nursing home located in a 
city with a population, according to the state demographer's 
1985 estimate, between 900 and 1,000, in a county with a 
population, according to the state demographer's 1985 estimate, 
between 18,000 and 19,000, if the land was given to the nursing 
home as a gift with the expectation that it would not be sold 
during the donor's lifetime.  This exemption is available until 
July 1, 1995. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved May 6, 1985