1.1                          A bill for an act 
  1.2             relating to agriculture; expanding a grant program for 
  1.3             livestock and dairy processing and marketing ventures 
  1.4             to include other commodities; appropriating money; 
  1.5             amending Minnesota Statutes 1997 Supplement, section 
  1.6             17.101, subdivision 5. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.9   17.101, subdivision 5, is amended to read: 
  1.10     Subd. 5.  [VALUE-ADDED AGRICULTURAL LIVESTOCK PRODUCT 
  1.11  PROCESSING AND MARKETING GRANT PROGRAM.] (a) For purposes of 
  1.12  this section, "livestock or dairy agricultural commodity" means 
  1.13  a material produced for use in or as food, feed, seed, or fiber 
  1.14  and includes crops for fiber, food, oilseeds, seeds, livestock, 
  1.15  livestock products, dairy, dairy products, poultry, poultry 
  1.16  products, and other products or by-products of the farm produced 
  1.17  for the same or similar use, except ethanol.  "Agricultural 
  1.18  product processing facility" means land, buildings, structures, 
  1.19  fixtures, and improvements located or to be located in Minnesota 
  1.20  and used or operated primarily for the processing or production 
  1.21  of marketable products from agricultural livestock or dairy 
  1.22  commodities produced in Minnesota.  
  1.23     (b) The commissioner shall establish and implement a 
  1.24  value-added agricultural livestock and dairy product processing 
  1.25  and marketing grant program to help farmers finance new 
  1.26  cooperatives that organize for the purposes of 
  2.1   operating livestock and dairy agricultural product processing 
  2.2   facilities and for marketing activities related to the sale and 
  2.3   distribution of processed livestock and dairy agricultural 
  2.4   products.  
  2.5      (c) To be eligible for this program a grantee must:  
  2.6      (1) be a cooperative organized under chapter 308A; 
  2.7      (2) certify that all of the control and equity in the 
  2.8   cooperative is from farmers as defined in section 500.24, 
  2.9   subdivision 2, who are actively engaged in livestock or dairy 
  2.10  agricultural commodity production; 
  2.11     (3) be operated primarily for the processing of livestock 
  2.12  or dairy agricultural commodities produced in Minnesota; 
  2.13     (4) receive livestock or dairy agricultural commodities 
  2.14  produced primarily by shareholders or members of the 
  2.15  cooperative; and 
  2.16     (5) have no direct or indirect involvement in the 
  2.17  production of livestock and dairy agricultural commodities.  
  2.18     (d) The commissioner may receive applications from and make 
  2.19  grants up to $50,000 for feasibility, marketing analysis, and 
  2.20  predesign of facilities to eligible cooperatives.  The 
  2.21  commissioner shall give priority to applicants who use the 
  2.22  grants for planning costs related to an application for 
  2.23  financial assistance from the United States Department of 
  2.24  Agriculture, Rural Business - Cooperative Service. 
  2.25     Sec. 2.  [APPROPRIATION.] 
  2.26     (a) $200,000 in fiscal year 1999 is appropriated from the 
  2.27  general fund to the department of agriculture for grants under 
  2.28  Minnesota Statutes, section 17.101, subdivision 5. 
  2.29     (b) The appropriation in Laws 1997, chapter 216, section 7, 
  2.30  subdivision 3, for grants under Minnesota Statutes, section 
  2.31  17.101, subdivision 5, is available until June 30, 2001.