1999 Minnesota Statutes

     17.115 Shared savings loan program. 

    Subdivision 1.    Establishment.  The commissioner shall 
 establish a shared savings loan program to provide loans that 
 enable farmers to adopt best management practices that emphasize 
 sufficiency and self-sufficiency in agricultural inputs, 
 including energy efficiency, reduction of petroleum and chemical 
 inputs, and increasing the energy self-sufficiency of 
 agricultural producers. 

    Subd. 2.    Loan criteria.  (a) The shared savings loan 
 program must provide loans for purchase of new or used 
 machinery, installation of equipment, and projects that reduce 
 or make more efficient farm energy use.  Eligible loan uses do 
 not include seed, fertilizer, or fuel. 

    (b) Loans may not exceed $15,000 per individual applying 
 for a loan and may not exceed $75,000 for loans to five or more 
 individuals on joint projects.  The loan repayment period may be 
 up to seven years as determined by project cost and energy 
 savings.  The interest on the loans is six percent. 

    (c) Loans may only be made to residents of this state 
 engaged in farming.  

    Subd. 3.    Awarding of loans.  (a) Applications for 
 loans must be made to the commissioner on forms prescribed by 
 the commissioner. 

    (b) The applications must be reviewed, ranked, and 
 recommended by a loan review panel appointed by the 
 commissioner.  The loan review panel shall consist of two 
 lenders with agricultural experience, two resident farmers of 
 the state using sustainable agriculture methods, two resident 
 farmers of the state using organic agriculture methods, a farm 
 management specialist, a representative from a post-secondary 
 education institution, and a chair from the department.  

    (c) The loan review panel shall rank applications according 
 to the following criteria: 

    (1) realize savings to the cost of agricultural production 
 and project savings to repay the cost of the loan; 

    (2) reduce or make more efficient use of energy; and 

    (3) reduce production costs.  

    (d) A loan application must show that the loan can be 
 repaid by the applicant.  

    (e) The commissioner must consider the recommendations of 
 the loan review panel and may make loans for eligible projects.  
 Priority must be given based on the amount of savings realized 
 by adopting the practice implemented by the loan. 

    Subd. 4.    Administration; information dissemination.  
 The amount in the revolving loan account is appropriated to the 
 commissioner to make loans under this section and administer the 
 loan program.  The interest on the money in the revolving loan 
 account and the interest on loans repaid to the state may be 
 spent by the commissioner for administrative expenses.  The 
 commissioner shall collect and disseminate information relating 
 to projects for which loans are given under this section.  

    HIST: 1986 c 444; 1988 c 688 art 15 s 1; 1999 c 231 s 26