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

  

                         Laws of Minnesota 1988 

                        CHAPTER 610-H.F.No. 2041 
           An act relating to agriculture; limiting ownership of 
          agricultural land by certain corporations and limited 
          partnerships; providing for conveyance of certain 
          interests; amending Minnesota Statutes 1986, sections 
          40.43, by adding a subdivision; 500.24, subdivisions 
          3, 3a, 3b, 4, and 5; Minnesota Statutes 1987 
          Supplement, section 500.24, subdivisions 2, 6, and 7. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 40.43, is 
amended by adding a subdivision to read: 
    Subd. 8.  [CORRECTION OF CONSERVATION EASEMENT BOUNDARY 
LINES.] To correct errors in legal descriptions for easements 
obtained that affect the ownership interests in the state and 
adjacent landowners, the commissioner may, in the name of the 
state, with the approval of the attorney general, convey, 
without consideration, interests of the state necessary to 
correct legal descriptions of boundaries.  The conveyance must 
be by quitclaim deed or release in a form approved by the 
attorney general. 
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
500.24, subdivision 2, is amended to read:  
    Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
the terms defined in this subdivision have the meanings here 
given them: 
    (a) "Farming" means the production of (1) agricultural 
products; (2) livestock or livestock products; (3) milk or milk 
products; or (4) fruit or other horticultural products.  It does 
not include the processing, refining, or packaging of said 
products, nor the provision of spraying or harvesting services 
by a processor or distributor of farm products.  It does not 
include the production of timber or forest products or the 
production of poultry or poultry products. 
    (b) "Family farm" means an unincorporated farming unit 
owned by one or more persons residing on the farm or actively 
engaging in farming. 
    (c) "Family farm corporation" means a corporation founded 
for the purpose of farming and the ownership of agricultural 
land in which the majority of the voting stock is held by and 
the majority of the stockholders are persons or the spouses of 
persons related to each other within the third degree of kindred 
according to the rules of the civil law, and at least one of 
said related persons is residing on or actively operating the 
farm, and none of whose stockholders are corporations; provided 
that a family farm corporation shall not cease to qualify as 
such hereunder by reason of any devise or bequest of shares of 
voting stock. 
    (d) "Authorized farm corporation" means a corporation 
meeting the following standards: 
    (1) its shareholders do not exceed five in number; 
    (2) all its shareholders, other than any estate are natural 
persons; 
    (3) it does not have more than one class of shares; and 
    (4) its revenues from rent, royalties, dividends, interest 
and annuities does not exceed 20 percent of its gross receipts; 
and 
    (5) shareholders holding a majority of the shares 51 
percent or more of the interest in the corporation must be 
residing on the farm or actively engaging in farming; 
    (6) the authorized farm corporation, directly or 
indirectly, owns or otherwise has an interest, whether legal, 
beneficial, or otherwise, in any title to no more than 1,500 
acres of real estate used for farming or capable of being used 
for farming in this state; and 
     (7) a shareholder of the authorized farm corporation is not 
a shareholder in other authorized farm corporations that 
directly or indirectly in combination with the authorized farm 
corporation own not more than 1,500 acres of real estate used 
for farming or capable of being used for farming in this state. 
    (e) "Agricultural land" means land used for farming. 
    (f) "Pension or investment fund" means a pension or 
employee welfare benefit fund, however organized, a mutual fund, 
a life insurance company separate account, a common trust of a 
bank or other trustee established for the investment and 
reinvestment of money contributed to it, a real estate 
investment trust, or an investment company as defined in United 
States Code, title 15, section 80a-3.  "Pension or investment 
fund" does not include a benevolent trust established by the 
owners of a family farm, authorized farm corporation or family 
farm corporation.  
    (g) "Farm homestead" means a house including adjoining 
buildings that has been used as part of a farming operation or 
is part of the agricultural land used for a farming operation. 
    (h) "Family farm partnership" means a limited partnership 
formed for the purpose of farming and the ownership of 
agricultural land in which the majority of the interests in the 
partnership is held by and the majority of the partners are 
persons or the spouses of persons related to each other within 
the third degree of kindred according to the rules of the civil 
law, and at least one of the related persons is residing on or 
actively operating the farm, and none of the partners are 
corporations.  A family farm partnership does not cease to 
qualify as a family farm partnership because of a devise or 
bequest of interest in the partnership.  
    (i) "Authorized farm partnership" means a limited 
partnership meeting the following standards:  
    (1) it has been issued a certificate from the secretary of 
state or is registered with the county recorder and farming and 
ownership of agricultural land is stated as a purpose or 
character of the business; 
    (2) its partners do not exceed five in number;  
    (3) all its partners, other than an estate, are natural 
persons;  
    (4) its revenues from rent, royalties, dividends, interest, 
and annuities do not exceed 20 percent of its gross receipts;  
    (5) its general partners hold at least 51 percent of the 
interest in the land assets of the partnership and reside on the 
farm or are actively engaging in farming not more than 1,500 
acres as a general partner in an authorized limited partnership; 
    (6) its limited partners do not participate in the business 
of the limited partnership including operating, managing, or 
directing management of farming operations;  
    (7) the authorized farm partnership, directly or 
indirectly, does not own or otherwise have an interest, whether 
legal, beneficial, or otherwise, in a title to more than 1,500 
acres of real estate used for farming or capable of being used 
for farming in this state; and 
     (8) a limited partner of the authorized farm partnership is 
not a limited partner in other authorized farm partnerships that 
directly or indirectly in combination with the authorized farm 
partnership own not more than 1,500 acres of real estate used 
for farming or capable of being used for farming in this state.  
    Sec. 3.  Minnesota Statutes 1986, 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, or limited partnership shall engage in farming; 
nor shall any corporation or, pension or investment fund, or 
limited partnership, 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 do not apply to the following corporations or partnerships 
in clause (b) and do not apply to corporations, limited 
partnerships, and pension or investment funds that record its 
name and the particular exception under clauses (a) to (r) under 
which the agricultural land is owned or farmed, have a 
conservation plan prepared for the agricultural land, report as 
required under subdivision 4, and satisfy one of the following 
conditions under clauses (a) to (r): 
    (a) A bona fide encumbrance taken for purposes of security; 
    (b) A family farm corporation or, an authorized farm 
corporation, a family farm partnership, or an authorized farm 
partnership as defined in subdivision 2 or a general partnership;
    (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 rules; 
    (d) Agricultural land operated for research or experimental 
purposes with the approval of the commissioner of agriculture, 
provided that any commercial sales from such farm shall the 
operation must be incidental to the research or experimental 
objectives of the corporation.  A corporation, limited 
partnership, or pension or investment fund seeking to operate 
agricultural land for research or experimental purposes must 
submit to the commissioner a prospectus or proposal of the 
intended method of operation, containing information required by 
the commissioner including a copy of any operational contract 
with individual participants, prior to initial approval of an 
operation.  A corporation, limited partnership, or pension or 
investment fund operating agricultural land for research or 
experimental purposes prior to the effective date of section 2 
must comply with all requirements of this clause except the 
requirement for initial approval of the project; 
    (e) Agricultural land operated by a corporation or limited 
partnership for the purpose of raising breeding stock, including 
embryos, 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 or limited partnership in an 
amount, measured in acres, not to exceed the acreage under lease 
to such corporation as of May 20, 1973, or to the limited 
partnership as of May 1, 1988, 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, for a 
corporation or May 1, 1988, for a limited partnership in any 
five-year period, and the additional acreage reasonably 
necessary to meet the requirements of pollution control rules; 
    (g) Agricultural land when acquired as a gift (either by 
grant or a devise) by an educational, religious or charitable 
nonprofit corporation or by a pension or investment fund or 
limited partnership; provided that all lands so acquired by a 
pension or investment fund, and all lands so acquired by a 
corporation or limited partnership 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, or a 
limited partnership other than a family farm partnership or 
authorized farm partnership as defined in subdivision 2, for 
which the corporation or limited partnership 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 or limited partnership 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, a 
family farm partnership, or an authorized farm partnership, 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, United States Code, title 42, sections 
3901 to 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 or limited partnership 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 if acquired before May 1, 1988, and five years after 
acquiring the title if acquired on or after May 1, 1988, 
acquiring the title thereto, and further provided that the land 
so acquired shall not be used for farming during the ten-year or 
five-year period except under a lease to a family farm unit, a 
family farm corporation or, an authorized farm corporation, a 
family farm partnership, or an authorized farm partnership.  The 
aforementioned ten-year or five-year limitation period shall be 
deemed a covenant running with the title to the land against any 
pension or investment fund or corporate or limited partnership 
grantee or assignee or the successor of such pension or 
investment fund or corporation or limited partnership.  
Notwithstanding the five-year divestiture requirement under this 
paragraph, a financial institution may continue to own the 
agricultural land if the agricultural land is leased to the 
immediately preceding former owner, but must divest of the 
agricultural land within the ten-year period; 
    (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, or a family farm partnership; 
    (k) Agricultural land, either leased or owned, totaling no 
more than 2,700 acres, acquired after May 20, 1973 for the 
purpose of replacing or expanding asparagus growing operations, 
provided that such corporation had established 2,000 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 rules; 
    (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 rules, 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; 
    (r) The acreage of agricultural land and land capable of 
being used for farming owned and recorded by an authorized farm 
corporation as defined in Minnesota Statutes 1986, section 
500.24, subdivision 2, paragraph (d), or a limited partnership 
as of May 1, 1988, including the normal expansion of the 
ownership at a rate not to exceed 20 percent of the land owned 
and recorded as of May 1, 1988, measured in acres, in any 
five-year period, and including additional ownership reasonably 
necessary to meet the requirements of pollution control rules.  
    Sec. 4.  Minnesota Statutes 1986, section 500.24, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [LEASE AGREEMENT; CONSERVATION PRACTICE 
PROTECTION CLAUSE.] A corporation, pension or investment fund, 
or limited partnership, other than a family farm corporation or, 
an authorized farm corporation, a family farm partnership, or an 
authorized farm partnership, when leasing farm land to a family 
farm unit, a family farm corporation, or an authorized farm 
corporation, a family farm partnership, or an authorized farm 
partnership under provisions of subdivision 3, clause (i), must 
include within the lease agreement a provision prohibiting 
intentional damage or destruction to a conservation practice on 
the agricultural land. 
    Sec. 5.  Minnesota Statutes 1986, section 500.24, 
subdivision 3b, is amended to read:  
    Subd. 3b.  [PROTECTION OF CONSERVATION PRACTICES.] If a 
corporation, pension or investment fund, or limited partnership, 
other than a family farm corporation or, an authorized farm 
corporation, a family farm partnership, or authorized farm 
partnership, during the period of time it holds agricultural 
land under subdivision 3, clause (i), intentionally destroys a 
conservation practice as defined in section 40.19, subdivision 
5, to which the state has made a financial contribution, the 
corporation, pension or investment fund, or limited partnership 
must pay the commissioner of agriculture, for deposit in the 
general fund, an amount equal to the state's total contributions 
to that conservation practice plus interest from the time of 
investment in the conservation practice.  Interest must be 
calculated at an annual percentage rate of 12 percent. 
    Sec. 6.  Minnesota Statutes 1986, section 500.24, 
subdivision 4, is amended to read:  
    Subd. 4.  [REPORTS.] (a) The chief executive officer of 
every pension or investment fund or, corporation which, or 
limited partnership, except a family farm corporation or a 
family farm limited partnership, that holds any interest in 
agricultural land or land used for the breeding, feeding, 
pasturing, growing, or raising of livestock, dairy or poultry, 
or products thereof, or land used for the production of 
agricultural crops or fruit or other horticultural products, 
other than a bona fide encumbrance taken for purposes of 
security, or which is engaged in farming or proposing to 
commence farming in this state after May 20, 1973, shall file 
with the commissioner of agriculture a report containing the 
following information and documents: 
    (1) The name of the pension or investment fund or, 
corporation, or limited partnership and its place of 
incorporation, certification, or registration; 
    (2) The address of the pension or investment plan 
headquarters or of the registered office of the corporation in 
this state, the name and address of its registered agent in this 
state and, in the case of a foreign corporation or limited 
partnership, the address of its principal office in its place of 
incorporation, certification, or registration; 
    (3) The acreage and location listed by quarter-quarter 
section, township and county of each lot or parcel of land in 
this state owned or leased by the pension or investment fund, 
limited partnership, or corporation and used for the growing of 
crops or the keeping or feeding of poultry or livestock; 
    (4) The names and addresses of the officers, 
administrators, directors or trustees of the pension or 
investment fund, or of the officers, shareholders owning more 
than 10 percent of the stock, including the percent of stock 
owned by each such shareholder, and the members of the board of 
directors of the corporation, and the general and limited 
partners and the percentage of interest in the partnership by 
each partner; and 
    (5) The farm products which the pension or investment fund, 
limited partnership, or corporation produces or intends to 
produce on its agricultural land; 
    (6) With the first report, a copy of the title to the 
property where the farming operations are or will occur 
indicating the particular exception claimed under subdivision 3, 
clauses (a) to (r); and 
    (7) With the first or second report, a copy of the 
conservation plan proposed by the soil and water conservation 
district, and with subsequent reports a statement of whether the 
conservation plan was implemented. 
    The report of a corporation seeking to qualify hereunder as 
a family farm corporation or, an authorized farm corporation, a 
family farm partnership, or authorized farm partnership shall 
contain the following additional information:  The number of 
shares or the partnership interests owned by persons residing on 
the farm or actively engaged in farming, or their relatives 
within the third degree of kindred according to the rules of the 
civil law or their spouses; the name, address and number of 
shares owned by each shareholder or partnership interests owned 
by each partner; and a statement as to percentage of gross 
receipts of the corporation derived from rent, royalties, 
dividends, interest and annuities.  No pension or investment 
fund, limited partnership, or corporation shall commence farming 
in this state until the commissioner of agriculture has 
inspected the report and certified that its proposed operations 
comply with the provisions of this section. 
    (b) Every pension or investment fund, limited partnership, 
or corporation as described in clause (a) shall, prior to April 
15 of each year, file with the commissioner of agriculture a 
report containing the information required in clause (a), based 
on its operations in the preceding calendar year and its status 
at the end of the year.  A pension or investment fund, limited 
partnership, or corporation that does not file the report by 
April 15 must pay a $500 civil penalty.  The penalty is a lien 
on the land being farmed under subdivision 3 until the penalty 
is paid.  
    (c) Failure to file a required report, or the willful 
filing of false information, shall constitute a gross 
misdemeanor.  
    Sec. 7.  Minnesota Statutes 1986, section 500.24, 
subdivision 5, is amended to read:  
    Subd. 5.  [ENFORCEMENT.] With reason to believe that a 
corporation, limited partnership, or pension or investment fund 
is violating subdivision 3, the attorney general shall commence 
an action in the district court in which any agricultural lands 
relative to such violation are situated, or if situated in two 
or more counties, in any county in which a substantial part of 
the lands are situated.  The attorney general shall file for 
record with the county recorder or the registrar of titles of 
each county in which any portion of said lands are located a 
notice of the pendency of the action as provided in section 
557.02.  If the court finds that the lands in question are being 
held in violation of subdivision 3, it shall enter an order so 
declaring.  The attorney general shall file for record any such 
order with the county recorder or the registrar of titles of 
each county in which any portion of said lands are located.  
Thereafter, the pension or investment fund, limited partnership, 
or corporation owning such land shall have a period of five 
years from the date of such order to divest itself of such 
lands.  The aforementioned five year limitation period shall be 
deemed a covenant running with the title to the land against any 
pension or investment fund, limited partnership, or corporate 
grantee or assignee or the successor of such pension or 
investment fund, limited partnership, or corporation.  Any lands 
not so divested within the time prescribed shall be sold at 
public sale in the manner prescribed by law for the foreclosure 
of a mortgage by action.  In addition, any prospective or 
threatened violation may be enjoined by an action brought by the 
attorney general in the manner provided by law.  
    Sec. 8.  Minnesota Statutes 1987 Supplement, section 
500.24, subdivision 6, is amended to read:  
    Subd. 6.  [DISPOSAL OF LAND.] (a) A state or federal 
agency, limited partnership, or a corporation, other than a 
family farm corporation or an authorized farm corporation, may 
not lease or sell agricultural land or a farm homestead that was 
acquired by enforcing a debt against the agricultural land or 
farm homestead, including foreclosure of a mortgage, accepting a 
deed in lieu of foreclosure, terminating a contract for deed, or 
accepting a deed in lieu of terminating a contract for deed, 
before offering or making a good faith effort to offer the land 
for sale or lease to the immediately preceding former owner at a 
price no higher than the highest price offered by a third party 
that is acceptable to the seller or lessor.  The offer must be 
made on the notice to offer form under subdivision 7.  Selling 
or leasing property to a third party at a price is prima facie 
evidence that the price is acceptable to the seller or lessor.  
    (b) For purposes of this subdivision, the term "a price no 
higher than the highest price offered by a third party" means 
the acceptable cash price offered by a third party or the 
acceptable time-price offer made by a third party.  A cash price 
offer is one that involves simultaneous transfer of title for 
payment of the entire amount of the offer.  If the acceptable 
offer made by a third party is a time-price offer, the seller or 
lessor must make the same time-price offer or an equivalent cash 
offer to the immediately preceding former owner.  An equivalent 
cash offer is equal to the total of the payments made over a 
period of the time-price offer discounted by yield curve of the 
United States treasury notes and bonds on the first business day 
of the month in which the offer is personally delivered or 
mailed for time periods similar to the time period covered by 
the time-price offer, plus 2.0 percent.  A time-price offer is 
an offer that defers payment of a portion of the price and does 
not involve a transfer of fee title until payment of the entire 
amount of the offer is made.  
    (c) This subdivision applies to a seller when the property 
is sold and to a lessor each time the property is leased, for 
five years after the agricultural land is acquired except:  
    (1) an offer to lease to the immediately preceding former 
owner is required only until the immediately preceding owner 
fails to accept an offer to lease the property or the property 
is sold; and 
    (2) an offer to sell to the immediately preceding former 
owner is required until the property is sold.  
    (d) The notice of an offer under subdivision 7 that is 
personally delivered with a signed receipt or sent by certified 
mail with a receipt of mailing to the immediately preceding 
former owner's last known address is a good faith offer.  
    (e) This subdivision does not apply to a sale or lease that 
occurs after the seller or lessor has held the property for five 
years or longer.  
    (f) For purposes of this subdivision, if the immediately 
preceding former owner is a bankruptcy estate the debtor in the 
bankruptcy is the immediately preceding owner.  
    (g) The immediately preceding former owner must exercise 
the right to lease agricultural land or a homestead located on 
agricultural land in writing within 15 days after an offer to 
lease under this subdivision is mailed with a receipt of mailing 
or personally delivered.  The immediately preceding former owner 
must exercise the right to buy the agricultural land or farm 
homestead located on agricultural land, in writing, within 65 
days after an offer to buy under this subdivision is mailed with 
a receipt of mailing or is personally delivered.  Within ten 
days after exercising the right to lease or buy by accepting the 
offer, the immediately preceding owner must fully perform 
according to the terms of the offer including paying the amounts 
due.  A seller may sell and a lessor may lease the agricultural 
land or farm homestead subject to this subdivision to the third 
party in accordance with their lease or purchase agreement if: 
    (1) the immediately preceding former owner does not accept 
an offer to lease or buy before the offer terminates; or 
    (2) the immediately preceding former owner does not perform 
the obligations of the offer, including paying the amounts due, 
within ten days after accepting the offer. 
    (h) A certificate indicating whether or not the property 
contains agricultural land or a farm homestead that is signed by 
the county assessor where the property is located and recorded 
in the office of the county recorder or the registrar of titles 
where the property is located is prima facie evidence of whether 
the property is agricultural land or a farm homestead.  
    (i) As prima facie evidence that an offer to sell or lease 
agricultural land or a farm homestead has terminated, a receipt 
of mailing the notice under subdivision 7 and an affidavit, 
signed by a person authorized to act on behalf of a state, 
federal agency, or corporation selling or leasing the 
agricultural land or a farm homestead may be filed in the office 
of the county recorder or registrar of titles of the county 
where the agricultural land or farm homestead is located.  The 
affidavit must state that: 
    (1) notice of an offer to buy or lease the agricultural 
land or farm homestead was provided to the immediately preceding 
former owner at a price not higher than the highest price 
offered by a third party that is acceptable; 
    (2) the time during which the immediately preceding former 
owner is required to exercise the right to buy or lease the 
agricultural land or farm homestead has expired; 
    (3) the immediately preceding former owner has not 
exercised the right to buy or lease the agricultural land or 
farm homestead as provided in this subdivision or has accepted 
an offer and has not fully performed according to the terms of 
the offer; and 
    (4) the offer to the immediately preceding former owner has 
terminated. 
    (j) The right of an immediately preceding former owner to 
receive an offer to lease or purchase agricultural land under 
this subdivision or to lease or purchase at a price no higher 
than the highest price offered by a third party that is 
acceptable to the seller or lessor may be extinguished or 
limited by an express statement signed by the immediately 
preceding owner that complies with the plain language 
requirements of section 325G.31.  The right may not be 
extinguished or limited except by the express statement in a 
deed in lieu of foreclosure or in a deed in lieu of a 
termination of a contract for deed for the agricultural land.  
    (k) The right of an immediately preceding former owner to 
receive an offer to lease or purchase agricultural land under 
this subdivision may not be assigned or transferred, but may be 
inherited. 
    Sec. 9.  Minnesota Statutes 1987 Supplement, section 
500.24, subdivision 7, is amended to read:  
    Subd. 7.  [NOTICE OF OFFER.] (a) The state, a federal 
agency, limited partnership, or a corporation subject to 
subdivision 6 must provide a notice of an offer to sell or lease 
agricultural land substantially as follows, after inserting the 
appropriate terms within the parentheses:  

           "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND 
TO:    (...Immediately preceding former owner...) 
FROM:  (...The state, federal agency, limited partnership, or 
       corporation subject to subdivision 6...) 
DATE: (...date notice is mailed or personally delivered...) 
    (...The state, federal agency, limited partnership, or 
corporation...) HAS ACQUIRED THE AGRICULTURAL LAND DESCRIBED 
BELOW AND HAS RECEIVED AN ACCEPTABLE OFFER TO (LEASE, SELL) THE 
AGRICULTURAL LAND FROM ANOTHER PARTY.  UNDER MINNESOTA STATUTES, 
SECTION 500.24, SUBDIVISION 6, AN OFFER FROM (...the state, 
federal agency, limited partnership, or corporation...) MUST BE 
MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER MADE BY 
ANOTHER PARTY.  
    THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY 
(...approximate number of acres...) ACRES AND IS INFORMALLY 
DESCRIBED AS FOLLOWS: 
 (Informal description of the agricultural land being 
offered that reasonably describes the land.  This 
description does not need to be a legal description.) 
    (...The state, federal agency, limited partnership, or 
corporation...) OFFERS TO (SELL, LEASE) THE AGRICULTURAL LAND 
DESCRIBED ABOVE FOR A CASH PRICE OF $(...cash price or 
equivalent cash price for lease and lease period, or cash price 
or equivalent cash price for sale of land...), WHICH IS NOT 
HIGHER THAN THE PRICE OFFERED BY ANOTHER PARTY.  THE PRICE IS 
OFFERED ON THE FOLLOWING TERMS:  

                 (Terms, if any, of acceptable offer)  
    IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the 
state, federal agency, limited partnership, or corporation...) 
IN WRITING THAT YOU ACCEPT THE OFFER OR SIGN UNDERNEATH THE 
FOLLOWING PARAGRAPH AND RETURN A COPY OF THIS NOTICE BY (15 for 
a lease, 65 for a sale) DAYS AFTER THIS NOTICE IS PERSONALLY 
DELIVERED OR MAILED TO YOU.  THE OFFER IN THIS NOTICE TERMINATES 
ON (...date of termination - 15 days for lease and 65 days for 
sale after date of mailing or personal delivery...). 

                          ACCEPTANCE OF OFFER 
    I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND 
DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE.  AS 
PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE 
TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE 
OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER. 

                    ......................................... 
                    Signature of Former Owner Accepting Offer 
                    .........................................  
                    Date"
    (b) For an offer to sell, a copy of the purchase agreement 
containing the price and terms of the highest offer made by a 
third party that is acceptable to the seller and a signed 
affidavit by the seller affirming that the purchase agreement is 
true, accurate, and made in good faith must be included with the 
notice under this subdivision.  At the seller's discretion, 
reference to the third party's identity may be deleted from the 
copy of the purchase agreement. 
    (c) For an offer to lease, a copy of the lease containing 
the price and terms of the highest offer made by a third party 
that is acceptable to the lessor and a signed affidavit by the 
lessor affirming that the lease is true, accurate, and made in 
good faith must be included with the notice under this 
subdivision.  At the lessor's discretion, reference to the third 
party's identity may be deleted from the copy of the lease 
agreement.  
    (d) The affidavit under paragraphs (b) and (c) is subject 
to section 609.48.  
    Sec. 10.  [EFFECTIVE DATE.] 
    This act is effective May 1, 1988. 
    Approved April 24, 1988