Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 619-H.F.No. 2493
An act relating to agriculture; changing the law on
nuisance liability of agricultural operations;
establishing an advisory committee; providing for
research and memorandums of agreement; clarifying
terms; authorizing a livestock expansion loan program;
changing loan procedures; regulating animal lots;
establishing a demonstration program; changing
pesticide posting laws; amending Minnesota Statutes
1992, sections 18B.07, subdivision 3, as amended;
41B.02, by adding a subdivision; 116.07, subdivision
7; and 561.19, subdivisions 1 and 2; Minnesota
Statutes 1993 Supplement, section 41B.03, subdivision
3; proposing coding for new law in Minnesota Statutes,
chapters 17; and 41B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [17.136] [ANIMAL FEEDLOTS; POLLUTION CONTROL;
FEEDLOT AND MANURE MANAGEMENT ADVISORY COMMITTEE.]
(a) The commissioner of agriculture and the commissioner of
the pollution control agency shall establish a feedlot and
manure management advisory committee to identify needs, goals,
and suggest policies for research, monitoring, and regulatory
activities regarding feedlot and manure management. In
establishing the committee, the commissioner shall give first
consideration to members of the existing feedlot advisory group.
(b) The committee must include representation from beef,
dairy, pork, chicken, and turkey producer organizations. The
committee shall not exceed 18 members, but must include
representatives from at least three environmental organizations,
eight livestock producers, and four experts in soil and water
science, nutrient management, and animal husbandry, one member
from an organization representing local units of government, one
member from the senate, and one member from the house of
representatives. In addition, the department of agriculture,
the pollution control agency, board of water and soil resources,
soil and water conservation districts, the federal Soil
Conservation Service, the association of Minnesota counties, and
the Agricultural Stabilization and Conservation Service shall
serve on the committee as ex-officio nonvoting members.
(c) Persons who participated in activities of the feedlot
advisory group existing on and before the effective date of this
section must be allowed to speak at proceedings of the advisory
committee. These persons hold nonvoting status and are not
eligible for reimbursement of expenses under paragraph (h).
(d) The advisory committee shall elect a chair from its
members. The department and the agency shall provide staff
support to the committee.
(e) The commissioner of agriculture and the commissioner of
the pollution control agency shall consult with the advisory
committee during the development of any policies, rules, or
funding proposals or recommendations relating to feedlots or
feedlot-related manure management.
(f) The commissioner of agriculture shall consult with the
advisory committee on establishing a list of manure management
research needs and priorities.
(g) The advisory committee shall advise the commissioners
on other appropriate matters.
(h) Nongovernment members of the advisory committee shall
receive expenses, in accordance with section 15.059, subdivision
6. The advisory committee expires on June 30, 1997.
Sec. 2. [17.138] [MANURE MANAGEMENT RESEARCH AND
MONITORING PRIORITIES; COORDINATION OF RESEARCH.]
Subdivision 1. [PRIORITIES.] (a) The commissioner, in
consultation with the commissioner of the pollution control
agency and the feedlot and manure management advisory committee,
shall develop and maintain a list of manure management research
and monitoring needs and priorities.
(b) The commissioner shall solicit the needs and ideas of
livestock producers and consult with producers in developing the
list.
(c) The commissioner shall also consult with agricultural
and environmental researchers, state and federal agencies, and
other appropriate organizations to identify current efforts as
well as to assist in the development of research and monitoring
needs and priorities.
Subd. 2. [COORDINATION OF RESEARCH.] The commissioner
shall coordinate manure management research and monitoring and
make recommendations on manure management research and
monitoring funding priorities to the legislature and other
funding bodies.
Sec. 3. [17.139] [MEMORANDUM OF AGREEMENT AMONG STATE
AGENCIES ON INSPECTIONS OF AGRICULTURAL OPERATIONS.]
The commissioner shall develop memorandums of agreement
among all state and federal agencies that have authority to
inspect property in agricultural use, as defined in section
17.81, subdivision 4, to ensure that reasonable and effective
protocols are followed when inspecting sites in agricultural
use. The memorandum shall specify procedures that address, but
are not limited to, the following:
(1) when appropriate, advance notice to the agricultural
use landowner or operator;
(2) procedures for notification of the inspection results
or conclusions to the owner or operator; and
(3) special procedures as might be necessary, such as to
prevent the introduction of diseases.
Sec. 4. Minnesota Statutes 1992, section 18B.07,
subdivision 3, as amended by Laws 1994, chapter 482, section 1,
is amended to read:
Subd. 3. [POSTING.] (a) All fields receiving applications
of pesticide(s) bearing the label statement "Notify workers of
the application by warning them orally and by posting signs at
entrances to treated areas" must be posted in accordance with
labeling and rules adopted under this chapter.
(b) Sites being treated with pesticides through irrigation
systems must be posted throughout the period of pesticide
treatment. The posting must be done in accordance with labeling
and rules adopted under this chapter.
(c) If federal worker protection standards are not
applicable, soil applied insecticides are exempt from posting
requirements.
Sec. 5. Minnesota Statutes 1992, section 41B.02, is
amended by adding a subdivision to read:
Subd. 10a. [LIVESTOCK EXPANSION.] "Livestock expansion"
means improvements to a livestock operation, including the
purchase and construction or installation of improvements to
land, buildings, and other permanent structures, including
equipment incorporated in or permanently affixed to the land,
buildings, or structures, which are useful for and intended to
be used for the purpose of raising livestock.
Sec. 6. Minnesota Statutes 1993 Supplement, section
41B.03, subdivision 3, is amended to read:
Subd. 3. [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In
addition to the requirements under subdivision 1, a prospective
borrower for a beginning farm loan in which the authority holds
an interest, must:
(1) have sufficient education, training, or experience in
the type of farming for which the loan is desired;
(2) have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, of less
than $200,000 in 1991 and an amount in subsequent years which is
adjusted for inflation by multiplying $200,000 by the cumulative
inflation rate as determined by the United States All-Items
Consumer Price Index;
(3) demonstrate a need for the loan;
(4) demonstrate an ability to repay the loan;
(5) certify that the agricultural land to be purchased will
be used by the borrower for agricultural purposes;
(6) certify that farming will be the principal occupation
of the borrower;
(7) agree to participate in a farm management program
approved by the commissioner of agriculture for at least the
first five years of the loan, if an approved program is
available within 45 miles from the borrower's residence. The
commissioner may waive this requirement for any of the programs
administered by the authority if the participant requests a
waiver and has either a four-year degree in an agricultural
program or certification as an adult farm management instructor;
and
(8) agree to file an approved soil and water conservation
plan with the soil conservation service office in the county
where the land is located.
(b) If a borrower fails to participate under paragraph (a),
clause (7), the borrower is subject to penalty as determined by
the authority.
Sec. 7. [41B.045] [LIVESTOCK EXPANSION LOAN PROGRAM.]
Subdivision 1. [ESTABLISHMENT.] The authority may
establish, adopt rules for, and implement a loan program to
finance livestock expansions in the state.
Subd. 2. [LOAN PARTICIPATION.] The authority may
participate in a livestock expansion loan with an eligible
lender to a livestock farmer who meets the requirements of
section 41B.03, subdivision 1, clauses (1) and (2), and who are
actively engaged in a livestock operation. Participation is
limited to 45 percent of the principal amount of the loan or
$100,000, whichever is less. The interest rates and repayment
terms of the authority's participation interest may be different
from the interest rates and repayment terms of the lender's
retained portion of the loan.
Subd. 3. [SPECIFICATIONS.] No loan may be made to
refinance an existing debt. Each loan participation must be
secured by a mortgage on real property and such other security
as the authority may require.
Subd. 4. [APPLICATION AND ORIGINATION FEE.] The authority
may impose a reasonable nonrefundable application fee for each
application for a loan participation and an origination fee for
each loan issued under the livestock expansion loan program.
The origination fee initially shall be set at 1.5 percent and
the application fee at $50. The authority may review the fees
annually and make adjustments as necessary. The fees must be
deposited in the state treasury and credited to an account in
the special revenue fund. Money in this account is appropriated
to the commissioner for administrative expenses of the livestock
expansion loan program.
Subd. 5. [INTEREST RATE.] The interest rate per annum on
the livestock expansion loan participation must be at the rate
of interest determined by the authority to be necessary to
provide for the timely payment of principal and interest when
due on bonds or other obligations of the authority issued under
this chapter, to provide financing for loan participations made
under the livestock expansion loan program, and to provide for
reasonable and necessary costs of issuing, carrying,
administering, and securing the bonds or notes and to pay the
costs incurred and to be incurred by the authority in the
implementation of the livestock expansion loan program.
Sec. 8. Minnesota Statutes 1992, section 116.07,
subdivision 7, is amended to read:
Subd. 7. [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL
LOT PERMITS.] Any Minnesota county board may, by resolution,
with approval of the pollution control agency, assume
responsibility for processing applications for permits required
by the pollution control agency under this section for livestock
feedlots, poultry lots or other animal lots. The responsibility
for permit application processing, if assumed by a county, may
be delegated by the county board to any appropriate county
officer or employee.
(a) For the purposes of this subdivision, the term
"processing" includes:
(a) (1) the distribution to applicants of forms provided by
the pollution control agency;
(b) (2) the receipt and examination of completed
application forms, and the certification, in writing, to the
pollution control agency either that the animal lot facility for
which a permit is sought by an applicant will comply with
applicable rules and standards, or, if the facility will not
comply, the respects in which a variance would be required for
the issuance of a permit; and
(c) (3) rendering to applicants, upon request, assistance
necessary for the proper completion of an application.
(b) For the purposes of this subdivision, the term
"processing" may include, at the option of the county board:
(d), issuing, denying, modifying, imposing conditions upon,
or revoking permits pursuant to the provisions of this section
or rules promulgated pursuant to it, subject to review,
suspension, and reversal by the pollution control agency. The
pollution control agency shall, after written notification, have
15 days to review, suspend, modify, or reverse the issuance of
the permit. After this period, the action of the county board
is final, subject to appeal as provided in chapter 14.
(c) For the purpose of administration of rules adopted
under this subdivision, the commissioner and the agency may
provide exceptions for cases where the owner of a feedlot has
specific written plans to close the feedlot within five years.
These exceptions include waiving requirements for major capital
improvements.
(d) For purposes of this subdivision, a discharge caused by
an extraordinary natural event such as a precipitation event of
greater magnitude than the 25-year, 24-hour event, tornado, or
flood in excess of the 100-year flood is not a "direct discharge
of pollutants."
(e) In adopting and enforcing rules under this subdivision,
the commissioner shall cooperate closely with other governmental
agencies.
(f) The pollution control agency shall work with the
Minnesota extension service, the department of agriculture, the
board of water and soil resources, producer groups, local units
of government, as well as with appropriate federal agencies such
as the Soil Conservation Service and the Agricultural
Stabilization and Conservation Service, to notify and educate
producers of rules under this subdivision at the time the rules
are being developed and adopted and at least every two years
thereafter.
(g) The pollution control agency shall adopt rules
governing the issuance and denial of permits for livestock
feedlots, poultry lots or other animal lots pursuant to this
section. These rules apply both to permits issued by counties
and to permits issued by the pollution control agency directly.
(h) The pollution control agency shall exercise supervising
authority with respect to the processing of animal lot permit
applications by a county.
Sec. 9. Minnesota Statutes 1992, section 561.19,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For the purposes of this
section, the following terms have the meanings given them:
(a) "Agricultural operation" means a facility and its
appurtenances for the production of crops, livestock, poultry,
dairy products or poultry products, but not a facility primarily
engaged in processing agricultural products.
(b) "Established date of operation" means the date on which
the agricultural operation commenced. If the agricultural
operation is subsequently expanded or significantly altered, the
established date of operation for each expansion or alteration
is deemed to be the date of commencement of the expanded or
altered operation. As used in this paragraph, "expanded or
significantly altered" means:
(1) an expansion by at least 25 percent in the amount of a
particular crop grown or the number of a particular kind of
animal or livestock located on an agricultural operation; or
(2) a distinct change in the kind of agricultural
operation, as in changing from one kind of crop, livestock,
animal, or product to another, but not merely a change from one
generally accepted agricultural practice to another in producing
the same crop or product.
(c) "Family farm" means an unincorporated farm unit owned
by one or more persons or spouses of persons related to each
other within the third degree of kindred according to the rules
of the civil law at least one of whom is residing or actively
engaged in farming on the farm unit, or a "family farm
corporation," as that term is defined in section 500.24,
subdivision 2.
Sec. 10. Minnesota Statutes 1992, section 561.19,
subdivision 2, is amended to read:
Subd. 2. [AGRICULTURAL OPERATION NOT A NUISANCE.] An
agricultural operation which is a part of a family farm is not
and shall not become a private or public nuisance after six two
years from its established date of operation if the operation
was not a nuisance at its established date of operation.
The provisions of this subdivision do not apply:
(a) (1) to a condition or injury which results from the
negligent or improper operation of an agricultural operation or
from operations contrary to commonly accepted agricultural
practices or to applicable state or local laws, ordinances,
rules, or permits;
(b) (2) when an agricultural operation causes injury or
direct threat of injury to the health or safety of any person;
(c) (3) to the pollution of, or change in the condition of,
the waters of the state or the overflow of waters on the lands
of any person;
(d) (4) to an animal feedlot facility with a swine capacity
of 1,000 or more animal units as defined in the rules of the
pollution control agency for control of pollution from animal
feedlots, or a cattle capacity of 2,500 animals or more; or
(e) (5) to any prosecution for the crime of public nuisance
as provided in section 609.74 or to an action by a public
authority to abate a particular condition which is a public
nuisance.
Sec. 11. [1994 and 1995 DEMONSTRATION PROGRAM;
RESTRICTIONS.]
(a) During the years 1994 and 1995, loan participations
under Minnesota Statutes, section 41B.045, must comply with the
restrictions in this section.
(b) To the extent that herd health will not be jeopardized,
farms receiving assistance from the authority must be available
for tours within the first two years after completion of the
expansion.
(c) All livestock expansion loans must be for expansions
that include some of the most up-to-date, efficient systems
available. Projects must be approved by a University of
Minnesota extension livestock specialist prior to approval by
the authority.
Sec. 12. [EFFECTIVE DATE.]
Section 4 is effective the day following final enactment.
Presented to the governor May 6, 1994
Signed by the governor May 10, 1994, 4:50 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes