1.1                          A bill for an act
  1.2             relating to agriculture; promoting the development of 
  1.3             new small family farms; authorizing independent 
  1.4             contractors to provide start-up technical services for 
  1.5             beginning small farms; appropriating money; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 16B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [16B.175] [SMALL FAMILY FARM INCUBATOR 
  1.9   SERVICES.] 
  1.10     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
  1.11  finds that it is in the best interest of the state to promote 
  1.12  the development of new small family farms as the most 
  1.13  economically desirable and socially appropriate entity for 
  1.14  agricultural production.  The creation of new small family farms 
  1.15  enhances the stability and well-being of rural society in 
  1.16  Minnesota and strengthens the nuclear family. 
  1.17     Further, the legislature finds that most of the agencies 
  1.18  originally established to provide services to small farmers, 
  1.19  including the department of agriculture, the Minnesota extension 
  1.20  service, and the University of Minnesota, have shifted their 
  1.21  focus to promoting primarily large-scale, highly mechanized, 
  1.22  chemical-intensive farm enterprises at the expense of 
  1.23  traditional small family farms.  The services provided by the 
  1.24  university and the department of agriculture imply that success 
  1.25  in agricultural production can be achieved only on huge, capital 
  1.26  intensive farms.  The legislature concludes that it is 
  2.1   appropriate and in the public interest to establish a program 
  2.2   allowing qualified independent contractors to provide the 
  2.3   training, technical support, services, and financial guidance 
  2.4   needed to allow for the creation of new small family farms.  
  2.5      Further, the legislature concludes that there is ample 
  2.6   talent and interest in the private sector to provide the 
  2.7   required support for beginning family farms. 
  2.8      Subd. 2.  [DEFINITIONS.] The definitions in this 
  2.9   subdivision apply to this section. 
  2.10     (a) "Farming" means the production of:  
  2.11     (1) agricultural products; 
  2.12     (2) livestock or livestock products; 
  2.13     (3) milk or milk products; or 
  2.14     (4) fruit or other horticultural products. 
  2.15     "Farming" does not include the processing, refining, or 
  2.16  packaging of agricultural products or the production of timber 
  2.17  or forest products. 
  2.18     (b) "Small family farm" means an unincorporated farming 
  2.19  unit of not more than 200 acres owned or leased by one or more 
  2.20  persons residing on the farm, actively engaged in farming, and 
  2.21  deriving or intending to derive at least 60 percent of their 
  2.22  gross income from the sale of agricultural products produced on 
  2.23  the farm. 
  2.24     (c) "Small farm consultant" or "consultant" means a public 
  2.25  or nonpublic entity eligible to contract with the commissioner 
  2.26  of administration to provide appropriate services to small 
  2.27  family farms and persons desiring to establish small family 
  2.28  farms. 
  2.29     Subd. 3.  [PROPOSALS FROM SMALL FARM CONSULTANTS.] (a) The 
  2.30  commissioner shall establish a program to solicit and evaluate 
  2.31  proposals submitted by small farm consultants for assisting in 
  2.32  the establishment of new small family farms. 
  2.33     (b) Each proposal must include: 
  2.34     (1) an itemization of the services the consultant proposes 
  2.35  to provide to new small family farms; 
  2.36     (2) the number of new small family farms the consultant 
  3.1   proposes to help establish, and in what time period; 
  3.2      (3) criteria to be used in determining that creation of a 
  3.3   new small family farm has been successful; 
  3.4      (4) the level of compensation required by the consultant 
  3.5   for providing technical and other services to the prospective or 
  3.6   new small family farms; and 
  3.7      (5) a clear agreement that the state of Minnesota assumes 
  3.8   no financial liability for actions of the consultant or of new 
  3.9   small family farm operators and that the consultant agrees to 
  3.10  defend, indemnify, and hold the state harmless against any 
  3.11  claims to the contrary.  The proposal must provide that this 
  3.12  obligation will be secured by a liability insurance policy or 
  3.13  bond acceptable to the commissioner. 
  3.14     (c) The commissioner shall review proposals submitted by 
  3.15  prospective family farm consultants and may enter into 
  3.16  contractual arrangements to the extent allowed by appropriated 
  3.17  funds. 
  3.18     Sec. 2.  [APPROPRIATION.] 
  3.19     $....... is appropriated from the general fund to the 
  3.20  commissioner of administration for purposes of the family farm 
  3.21  incubator services program in section 1, to be available until 
  3.22  June 30, 1997.  Of this amount, not more than $....... is 
  3.23  available for administrative expenses of the program in each 
  3.24  fiscal year of the biennium.