Bill Text: MN SF2437 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Agriculture shared savings loan program provisions modifications; pilot agricultural microloan program definition modification
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2014-03-06 - Referred to Jobs, Agriculture and Rural Development [SF2437 Detail]
Download: Minnesota-2013-SF2437-Introduced.html
1.2relating to agriculture; modifying provisions related to the shared savings loan
1.3program; modifying definition applicable to the pilot agricultural microloan
1.4program;amending Minnesota Statutes 2012, sections 17.115, subdivisions
1.51, 2, 3, 4; 41B.056, subdivision 2; repealing Minnesota Statutes 2012, section
1.617.115, subdivision 5.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 17.115, subdivision 1, is amended to read:
1.9 Subdivision 1. Establishment. The commissioner shall establish a shared savings
1.10loan program to provide loans that enable farmers toadopt best management practices
1.11that emphasize sufficiency and self-sufficiency in agricultural inputs, including energy
1.12efficiency, reduction or improved management of inputs, increasing energy production by
1.13agricultural producers, and environmental improvements.:
1.14(1) add value to crops or livestock produced in Minnesota;
1.15(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
1.16(3) reduce or improve management of agricultural inputs resulting in environmental
1.17improvements; or
1.18(4) increase production of on-farm energy.
1.19 Sec. 2. Minnesota Statutes 2012, section 17.115, subdivision 2, is amended to read:
1.20 Subd. 2. Loan criteria. (a) The shared savings loan program must provide loans for
1.21purchase of new or usedmachinery equipment and installation of equipment for projects
1.22that make environmental improvements and enhance farm profitability. The loan program
1.23may also be used to add value to crops or livestock produced in Minnesota by: (1) initiating
1.24or expanding livestock product processing; (2) purchasing equipment to initiate, upgrade,
2.1or modernize value-added agricultural businesses; or (3) increasing farmers' processing
2.2and aggregating capacity to facilitate entry into farm-to-institution and other markets.
2.3Eligible loan uses do not include seed, fertilizer, or fuel or other operating expenses.
2.4(b) Loans may not exceed $40,000 per individual applying for a loan and may
2.5not exceed $160,000 for loans to four or more individuals on joint projects. The loan
2.6repayment period may be up to seven years as determined by project cost and energy
2.7savings. The interest rate on the loans must not exceed six percent.
2.8(c) Loans may only be made to residents of this state engaged in farming.
2.9(d) The commissioner may impose a reasonable nonrefundable application fee for
2.10each application for a loan. The commissioner may review the fee annually and make
2.11adjustments as necessary. The application fee shall be initially set at $50. Application
2.12fees must be deposited in the revolving loan account established in this section. The
2.13commissioner may also collect fees that are related to the origination of the loan.
2.14 Sec. 3. Minnesota Statutes 2012, section 17.115, subdivision 3, is amended to read:
2.15 Subd. 3. Awarding of loans. (a) Applications for loans must be made to the
2.16commissioner on forms prescribed by the commissioner.
2.17(b) The applications must be reviewed, ranked, and recommended by a loan review
2.18panel appointed by the commissioner.The loan review panel shall consist of two lenders
2.19with agricultural experience, two resident farmers of the state using sustainable agriculture
2.20methods, two resident farmers of the state using organic agriculture methods, a farm
2.21management specialist, a representative from a postsecondary education institution, and a
2.22chair from the department.
2.23(c) The loan review panel shall rank applications according to the following criteria:
2.24(1) realize savings to the cost of agricultural production;
2.25(2) reduce or make more efficient use of energy or inputs;
2.26(3) increase overall farm profitability; and
2.27(4) result in environmental benefits.
2.28(d) A loan application must show that the loan can be repaid by the applicant.
2.29(e) (c) The commissioner must consider the recommendations of the loan review
2.30panel and may make loans for eligible projects.
2.31 Sec. 4. Minnesota Statutes 2012, section 17.115, subdivision 4, is amended to read:
2.32 Subd. 4. Administration; information dissemination. The shared savings
2.33revolving loan account is established in the special revenue fund. The amount in the
2.34revolving loan account is appropriated to the commissioner to make loans under this
3.1section and administer the loan program. The interest on the money in the revolving loan
3.2accountand, the interest on loans repaid to the state, and any application fees may be spent
3.3by the commissioner for administrative expenses. The commissioner shall collect and
3.4disseminate information relating to projects for which loans are given under this section.
3.5 Sec. 5. Minnesota Statutes 2012, section 41B.056, subdivision 2, is amended to read:
3.6 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
3.7(b) "Intermediary" means any lending institution or other organization of a for-profit
3.8or nonprofit nature that is in good standing with the state of Minnesota that has the
3.9appropriate business structure and trained personnel suitable to providing efficient
3.10disbursement of loan funds and the servicing and collection of loans.
3.11(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
3.12and other horticultural products, that are intensively cultivated.
3.13(d) "Eligible livestock" meanspoultry that has been allowed access to the outside,
3.14sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
3.15ratitae, bison, sheep, horses, and llamas.
3.16 Sec. 6. REPEALER.
3.17Minnesota Statutes 2012, section 17.115, subdivision 5, is repealed.
1.3program; modifying definition applicable to the pilot agricultural microloan
1.4program;amending Minnesota Statutes 2012, sections 17.115, subdivisions
1.51, 2, 3, 4; 41B.056, subdivision 2; repealing Minnesota Statutes 2012, section
1.617.115, subdivision 5.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 17.115, subdivision 1, is amended to read:
1.9 Subdivision 1. Establishment. The commissioner shall establish a shared savings
1.10loan program to provide loans that enable farmers to
1.11
1.12
1.13
1.14(1) add value to crops or livestock produced in Minnesota;
1.15(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
1.16(3) reduce or improve management of agricultural inputs resulting in environmental
1.17improvements; or
1.18(4) increase production of on-farm energy.
1.19 Sec. 2. Minnesota Statutes 2012, section 17.115, subdivision 2, is amended to read:
1.20 Subd. 2. Loan criteria. (a) The shared savings loan program must provide loans for
1.21purchase of new or used
1.22that make environmental improvements and enhance farm profitability. The loan program
1.23may also be used to add value to crops or livestock produced in Minnesota by: (1) initiating
1.24or expanding livestock product processing; (2) purchasing equipment to initiate, upgrade,
2.1or modernize value-added agricultural businesses; or (3) increasing farmers' processing
2.2and aggregating capacity to facilitate entry into farm-to-institution and other markets.
2.3Eligible loan uses do not include seed, fertilizer, or fuel or other operating expenses.
2.4(b) Loans may not exceed $40,000 per individual applying for a loan and may
2.5not exceed $160,000 for loans to four or more individuals on joint projects. The loan
2.6repayment period may be up to seven years as determined by project cost and energy
2.7savings. The interest rate on the loans must not exceed six percent.
2.8(c) Loans may only be made to residents of this state engaged in farming.
2.9(d) The commissioner may impose a reasonable nonrefundable application fee for
2.10each application for a loan. The commissioner may review the fee annually and make
2.11adjustments as necessary. The application fee shall be initially set at $50. Application
2.12fees must be deposited in the revolving loan account established in this section. The
2.13commissioner may also collect fees that are related to the origination of the loan.
2.14 Sec. 3. Minnesota Statutes 2012, section 17.115, subdivision 3, is amended to read:
2.15 Subd. 3. Awarding of loans. (a) Applications for loans must be made to the
2.16commissioner on forms prescribed by the commissioner.
2.17(b) The applications must be reviewed, ranked, and recommended by a loan review
2.18panel appointed by the commissioner.
2.19
2.20
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30panel and may make loans for eligible projects.
2.31 Sec. 4. Minnesota Statutes 2012, section 17.115, subdivision 4, is amended to read:
2.32 Subd. 4. Administration; information dissemination. The shared savings
2.33revolving loan account is established in the special revenue fund. The amount in the
2.34revolving loan account is appropriated to the commissioner to make loans under this
3.1section and administer the loan program. The interest on the money in the revolving loan
3.2account
3.3by the commissioner for administrative expenses. The commissioner shall collect and
3.4disseminate information relating to projects for which loans are given under this section.
3.5 Sec. 5. Minnesota Statutes 2012, section 41B.056, subdivision 2, is amended to read:
3.6 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
3.7(b) "Intermediary" means any lending institution or other organization of a for-profit
3.8or nonprofit nature that is in good standing with the state of Minnesota that has the
3.9appropriate business structure and trained personnel suitable to providing efficient
3.10disbursement of loan funds and the servicing and collection of loans.
3.11(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
3.12and other horticultural products, that are intensively cultivated.
3.13(d) "Eligible livestock" means
3.14
3.15ratitae, bison, sheep, horses, and llamas.
3.16 Sec. 6. REPEALER.
3.17Minnesota Statutes 2012, section 17.115, subdivision 5, is repealed.
