Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 126-S.F.No. 338
An act relating to agriculture; changing limitations
on ownership of agricultural land by corporations,
limited liability companies, pension or investment
funds, and limited partnerships; amending Minnesota
Statutes 1996, section 500.24, subdivisions 2, 3, 3a,
3b, and 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 500.24,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For the purposes of this section,
the terms defined The definitions in this subdivision have the
meanings here given them: apply to this section.
(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, or the feeding and
caring for livestock that are delivered to a corporation for
slaughter or processing for up to 20 days before slaughter or
processing.
(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 under clause (1) or (2):
(1)(i) its it has no more than five shareholders do not
exceed five in number;
(ii) (2) all its shareholders, other than any estate, are
natural persons;
(iii) (3) it does not have more than one class of shares;
and
(iv) (4) its revenues revenue from rent, royalties,
dividends, interest, and annuities does not exceed 20 percent of
its gross receipts; and
(v) (5) shareholders holding 51 percent or more of the
interest in the corporation must be residing reside on the farm
or are actively engaging in farming;
(vi) the authorized farm corporation (6) it does not,
directly or indirectly, owns own or otherwise has have 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 agricultural
land; and
(vii) a shareholder of the authorized farm corporation is
not a shareholder (7) none of its shareholders are shareholders
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; or agricultural
land.
(2)(i) the corporation (e) "Authorized livestock farm
corporation" means a corporation formed for the production of
livestock and meeting the following standards:
(1) it is engaged in the production of livestock other than
dairy cattle; and not engaged in farming activities otherwise
prohibited under this section;
(ii) (2) all its shareholders, other than an any estate,
are natural persons or a family farm corporation corporations;
(iii) (3) it does not have more than one class of shares;
(iv) (4) its revenue from rent, royalties, dividends,
interest, and annuities does not exceed 20 percent of its gross
receipts;
(v) (5) shareholders holding 75 percent or more of the
control and, financial, and capital investment in the
corporation must be are farmers residing in Minnesota and at
least 51 percent of the required percentage of farmers must be
are actively engaged in livestock production;
(vi) the authorized farm corporation (6) it does not,
directly or indirectly, owns own or otherwise has have 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 agricultural
land; and
(vii) a shareholder of the authorized farm corporation is
not a shareholder (7) none of its shareholders are shareholders
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; and
(viii) the corporation was formed for the production of
livestock other than dairy cattle by natural persons or family
farm corporations that provide 75 percent or more of the capital
investment agricultural land.
(e) (f) "Agricultural land" means land real estate used for
farming or capable of being used for farming in this state.
(f) (g) "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) (h) "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) (i) "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) (j) "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 no more than five partners do not exceed five in
number;
(3) all its partners, other than an any estate, are natural
persons;
(4) its revenues revenue 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 it does not, directly
or indirectly, does not own or otherwise have an interest,
whether legal, beneficial, or otherwise, in a any title to more
than 1,500 acres of real estate used for farming or capable of
being used for farming in this state agricultural land; and
(8) a limited partner of the authorized farm partnership is
not a none of its limited partners are limited partner partners
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 agricultural
land.
(j) (k) "Farmer" means a natural person who regularly
participates in physical labor or operations management in
the farmer's person's farming operation and files "Schedule F"
as part of the person's annual Form 1040 filing with the United
States Internal Revenue Service.
(k) (l) "Actively engaged in livestock production" means
that a person performs performing day-to-day physical labor or
day-to-day operations management that significantly contributes
to livestock production and the functioning of a livestock
operation.
(m) "Research or experimental farm" means a corporation,
limited partnership, or pension or investment fund that owns or
operates agricultural land for research or experimental
purposes, provided that any commercial sales from the operation
are incidental to the research or experimental objectives of the
corporation. A corporation, limited partnership, or pension or
investment fund seeking initial approval by the commissioner to
operate agricultural land for research or experimental purposes
must first 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.
(n) "Breeding stock farm" means a corporation or limited
partnership that owns land for the purpose of raising breeding
stock, including embryos, for resale to farmers or for the
purpose of growing seed, wild rice, nursery plants, or sod. An
entity that is organized to raise livestock other than dairy
cattle under this paragraph that does not qualify as an
authorized farm corporation must:
(1) sell all castrated animals to be fed out or finished to
farming operations that are neither directly nor indirectly
owned by the business entity operating the breeding stock
operation; and
(2) report its total production and sales annually to the
commissioner.
(o) "Aquatic farm" means a corporation or limited
partnership that owns or leases agricultural land as a necessary
part of an aquatic farm as defined in section 17.47, subdivision
3.
(p) "Religious farm" means a corporation formed primarily
for religious purposes whose sole income is derived from
agriculture.
(q) "Utility corporation" means a corporation regulated
under Minnesota Statutes 1974, chapter 216B, that owns
agricultural land for purposes described in that chapter, or an
electric generation or transmission cooperative that owns
agricultural land for use in its business if the land is not
used for farming except under lease to a family farm unit, a
family farm corporation, or a family farm partnership.
(r) "Benevolent trust" means a pension fund or family trust
established by the owners of a family farm, authorized farm
corporation, authorized livestock farm corporation, or family
farm corporation that holds an interest in title to agricultural
land on which one or more of those owners or shareholders have
resided or have been actively engaged in farming as required by
paragraph (b), (c), (d), or (e).
(s) "Development organization" means a corporation, limited
partnership, or pension or investment fund that owns
agricultural land for which the corporation, limited
partnership, or pension or investment fund 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 corporation, limited partnership, or
pension or investment fund may hold agricultural land in the
amount necessary for its nonfarm business operation; provided,
however, that pending the development of agricultural land for
nonfarm purposes, the land may not be used for farming except
under lease to a family farm unit, a family farm corporation, an
authorized farm corporation, an authorized livestock 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 that
has entered into an agreement with the United States under 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.
(t) "Exempt land" means agricultural land owned or leased
by a corporation as of May 20, 1973, agricultural land owned or
leased by a pension or investment fund as of May 12, 1981, or
agricultural land owned or leased by a limited partnership as of
May 1, 1988, including the normal expansion of that ownership at
a rate not to exceed 20 percent of the amount of land owned as
of May 20, 1973, for a corporation; May 12, 1981, for a pension
or investment fund; or May 1, 1988, for a limited partnership,
measured in acres, in any five-year period, and including
additional ownership reasonably necessary to meet the
requirements of pollution control rules. A corporation, limited
partnership, or pension or investment fund that is eligible to
own or lease agricultural land under this section prior to May
1997 may continue to own or lease agricultural land subject to
the same conditions and limitations as previously allowed.
(u) "Gifted land" means agricultural land acquired as a
gift, either by grant or devise, by an educational, religious,
or charitable nonprofit corporation, limited partnership, or
pension or investment fund if all land so acquired is disposed
of within ten years after acquiring the title.
(v) "Repossessed land" means agricultural land acquired by
a corporation, limited partnership, or pension or investment
fund by process of law in the collection of debts, or by any
procedure for the enforcement of a lien or claim on the land,
whether created by mortgage or otherwise if all land so acquired
is disposed of within five years after acquiring the title. The
five-year limitation is a covenant running with the title to the
land against any grantee, assignee, or successor of the pension
or investment fund, corporation, or limited partnership. The
land so acquired must not be used for farming during the
five-year period, except under a lease to a family farm unit, a
family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm
partnership, or an authorized farm 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 dispose of the agricultural land within
ten years of acquiring the title. Livestock acquired by a
pension or investment fund, corporation, or limited partnership
in the collection of debts, or by a procedure for the
enforcement of lien or claim on the livestock whether created by
security agreement or otherwise after August 1, 1994, must be
sold or disposed of within one full production cycle for the
type of livestock acquired or 18 months after the livestock is
acquired, whichever is later.
(w) "Commissioner" means the commissioner of agriculture.
Sec. 2. Minnesota Statutes 1996, section 500.24,
subdivision 3, is amended to read:
Subd. 3. [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY
CORPORATIONS RESTRICTED.] No corporation, limited liability
company, pension or investment fund, or limited partnership
shall engage in farming; nor shall any corporation, limited
liability company, pension or investment fund, or limited
partnership, directly or indirectly, own, acquire, or otherwise
obtain an any 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. Livestock that are delivered
for slaughter or processing may be fed and cared for by a
corporation up to 20 days prior to slaughter or processing.
Provided, however, that the restrictions in this subdivision do
not apply to 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 (s) 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
(s): in agricultural land other than a bona fide encumbrance
taken for purposes of security. This subdivision does not apply
to general partnerships. This subdivision does not apply to any
agricultural land, corporation, limited partnership, or pension
or investment fund that meet any of the definitions in
subdivision 2, paragraphs (b) to (e), (i), (j), and (m) to (v),
has a conservation plan prepared for the agricultural land, and
reports as required under subdivision 4.
(a) a bona fide encumbrance taken for purposes of security;
(b) a family farm corporation, 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 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 May 1, 1988, 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. An entity that
is organized to raise livestock other than dairy cattle under
this clause that does not meet the definition requirement for an
authorized farm corporation must:
(1) sell all castrated animals to be fed out or finished to
farming operations that are neither directly nor indirectly
owned by the business entity operating the breeding stock
operation; and
(2) report its total production and sales annually to the
commissioner of agriculture;
(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, 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, 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
grantee, assignee, or successor of the pension or investment
fund, corporation, or limited partnership. Notwithstanding the
five-year divestiture requirement under this clause, 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. Livestock acquired by a pension or investment
fund, corporation, or limited partnership in the collection of
debts, or by a procedure for the enforcement of lien or claim on
the livestock whether created by security agreement or otherwise
after August 1, 1994, must be sold or disposed of within one
full production cycle for the type of livestock acquired or 18
months after the livestock is acquired, whichever is later;
(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, 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 this subdivision 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;
(s) agricultural land owned or leased as a necessary part
of an aquatic farm as defined in section 17.47, subdivision 3.
Sec. 3. Minnesota Statutes 1996, 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, an
authorized farm corporation, an authorized livestock farm
corporation, a family farm partnership, or an authorized farm
partnership, when leasing farm land to a family farm unit, a
family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm
partnership, or an authorized farm partnership under provisions
of subdivision 3, clause (i) 2, paragraph (v), must include
within the lease agreement a provision prohibiting intentional
damage or destruction to a conservation practice on the
agricultural land.
Sec. 4. Minnesota Statutes 1996, 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, an authorized farm
corporation, an authorized livestock farm corporation, a family
farm partnership, or authorized farm partnership, which, during
the period of time it holds agricultural land under subdivision
3, clause (i) 2, paragraph (v), intentionally destroys a
conservation practice as defined in section 103F.401,
subdivision 3, 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. 5. Minnesota Statutes 1996, section 500.24,
subdivision 4, is amended to read:
Subd. 4. [REPORTS.] (a) The chief executive officer of
every pension or investment fund, corporation, 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,
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 agricultural land or land used for the keeping or feeding of
poultry 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 ten 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;
(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, an authorized farm corporation, an
authorized livestock 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 paragraph (a) shall, prior
to April 15 of each year, file with the commissioner of
agriculture a report containing the information required
in clause paragraph (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) The commissioner or the commissioner's authorized
representative may enter into a written agreement with a person
required to file a report under this subdivision who, for good
cause shown, has failed issue a written waiver or reduction of
the civil penalty for failure to make a timely filing of the
annual report required by this subdivision. An agreement must
be construed as a "no contest" pleading and may encompass a
reduction or waiver of the civil penalty for late filing. The
agreement waiver or reduction is final and conclusive with
respect to the civil penalty, and may not be reopened or
modified by an officer, employee, or agent of the state, except
upon a showing of fraud or malfeasance or misrepresentation of a
material fact. The matter agreed upon in the agreement may not
be reopened or modified by an officer, employee, or agent of the
state. The report required under paragraph (b) must be
completed prior to a reduction or waiver under this
paragraph. The commissioner may enter into an agreement under
this paragraph only once for each person required to file under
this subdivision. The commissioner may enter into an agreement
under this paragraph only once for each corporation or
partnership.
(d) Failure to file a required report, or the willful
filing of false information, shall constitute is a gross
misdemeanor.
Sec. 6. [RENUMBERING INSTRUCTION.]
The revisor of statutes shall renumber Minnesota Statutes,
section 500.24, subdivisions 6, 7, and 8 to be subdivisions 1,
2, and 3 of a new section 500.245 with the section heading
"RIGHT OF FIRST REFUSAL FOR AGRICULTURAL LAND" and correct all
references to those subdivisions in Minnesota Statutes and
Minnesota Rules.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 6 are effective the day after final enactment.
Presented to the governor May 8, 1997
Signed by the governor May 9, 1997, 8:12 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes