Minnesota Session Laws - 2006, Regular Session

CHAPTER 268--S.F.No. 3017

An act

relating to agriculture; providing for a study and report on public and private funding of a milk volume production loan program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin MILK VOLUME PRODUCTION LOAN PROGRAM FUNDING STUDY. new text end

new text begin Subdivision 1. new text end

new text begin Study. new text end

new text begin The commissioners of agriculture and employment and economic development must study the feasibility of a public and private partnership to fund a milk volume production loan program that would make low-interest loans to dairy producers of at least $500 per cow, as part of the producers' dairy capital improvement projects designed to increase milk production in Minnesota. The commissioners shall recommend an appropriate limit on the number of cows per producer to be covered by this program. The study must determine whether there is sufficient interest among agricultural lenders, private agribusiness, and the dairy industry to establish an adequate revolving loan fund for the program, consisting of private donations matched by public funding from existing economic development funds, rural development funds, or additional legislative appropriations. new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin By January 2, 2007, the commissioners of agriculture and employment and economic development must report on the results of the study required in subdivision 1 to the chairs of the committees of the house of representatives and the senate with jurisdiction over agricultural policy. The report must include recommendations on the following items: new text end

new text begin (1) estimated program administration costs; new text end

new text begin (2) the terms of a milk volume production loan including, but not limited to, amortization options and the rate of interest required only to cover program administration costs; new text end

new text begin (3) producer loan eligibility criteria; and new text end

new text begin (4) the amount of annual private contributions and public matching funds needed to establish a sustainable and effective revolving loan program for milk volume production loans. new text end

Sec. 2.

new text begin EFFECTIVE DATE. new text end

new text begin Section 1 is effective the day following final enactment. new text end

Presented to the governor May 22, 2006

Signed by the governor May 26, 2006, 5:12 p.m.