1.1 	A bill for an act
1.2 	relating to agriculture; updating terms of certain loan programs; abolishing the 
1.3 	family farm security program;amending Minnesota Statutes 2008, sections 
1.4 	17.115, subdivision 2; 41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, 
1.5 	subdivision 4; 41B.043, subdivision 1b; 41B.045, subdivision 2; repealing 
1.6 	Minnesota Statutes 2008, sections 41.51; 41.52; 41.53; 41.55; 41.56; 41.57; 
1.7 	41.58; 41.59; 41.60; 41.61; 41.62; 41.63; 41.65.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2008, section 17.115, subdivision 2, is amended to read:
1.10 		Subd. 2.Loan criteria. (a) The shared savings loan program must provide loans for 
1.11 	purchase of new or used machinery and installation of equipment for projects that make 
1.12 	environmental improvements or and enhance farm profitability. Eligible loan uses do not 
1.13 	include seed, fertilizer, or fuel.
1.14 	(b) Loans may not exceed $25,000 $40,000 per individual applying for a loan and 
1.15 	may not exceed $100,000 for loans to four or more individuals on joint projects. The loan 
1.16 	repayment period may be up to seven years as determined by project cost and energy 
1.17 	savings. The interest rate on the loans must not exceed six percent. For loans made from 
1.18 	May 1, 2004, to June 30, 2007, the interest rate must not exceed three percent.
1.19 	(c) Loans may only be made to residents of this state engaged in farming.

1.20 	Sec. 2. Minnesota Statutes 2008, section 41B.039, subdivision 2, is amended to read:
1.21 		Subd. 2.State participation. The state may participate in a new real estate loan 
1.22 	with an eligible lender to a beginning farmer to the extent of 45 percent of the principal 
1.23 	amount of the loan or $200,000 $300,000, whichever is less. The interest rates and 
2.1 	repayment terms of the authority's participation interest may be different than the interest 
2.2 	rates and repayment terms of the lender's retained portion of the loan.

2.3 	Sec. 3. Minnesota Statutes 2008, section 41B.04, subdivision 8, is amended to read:
2.4 		Subd. 8.State's State participation. With respect to loans that are eligible for 
2.5 	restructuring under sections 41B.01 to 41B.23 and upon acceptance by the authority, 
2.6 	the authority shall enter into a participation agreement or other financial arrangement 
2.7 	whereby it shall participate in a restructured loan to the extent of 45 percent of the primary 
2.8 	principal or $225,000 $400,000, whichever is less. The authority's portion of the loan 
2.9 	must be protected during the authority's participation by the first mortgage held by the 
2.10 	eligible lender to the extent of its participation in the loan.  

2.11 	Sec. 4. Minnesota Statutes 2008, section 41B.042, subdivision 4, is amended to read:
2.12 		Subd. 4.Participation limit; interest. The authority may participate in new 
2.13 	seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or 
2.14 	$200,000 $300,000, whichever is less. The interest rates and repayment terms of the 
2.15 	authority's participation interest may be different than the interest rates and repayment 
2.16 	terms of the seller's retained portion of the loan.

2.17 	Sec. 5. Minnesota Statutes 2008, section 41B.043, subdivision 1b, is amended to read:
2.18 		Subd. 1b.Loan participation. The authority may participate in an agricultural 
2.19 	improvement loan with an eligible lender to a farmer who meets the requirements of 
2.20 	section 41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming. 
2.21 	Participation is limited to 45 percent of the principal amount of the loan or $200,000
2.22 	$300,000, whichever is less. The interest rates and repayment terms of the authority's 
2.23 	participation interest may be different than the interest rates and repayment terms of 
2.24 	the lender's retained portion of the loan.  

2.25 	Sec. 6. Minnesota Statutes 2008, section 41B.045, subdivision 2, is amended to read:
2.26 		Subd. 2.Loan participation. The authority may participate in a livestock 
2.27 	expansion loan with an eligible lender to a livestock farmer who meets the requirements 
2.28 	of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in 
2.29 	a livestock operation. A prospective borrower must have a total net worth, including 
2.30 	assets and liabilities of the borrower's spouse and dependents, of less than $660,000 in 
2.31 	2004 and an amount in subsequent years which is adjusted for inflation by multiplying 
3.1 	that amount by the cumulative inflation rate as determined by the United States All-Items 
3.2 	Consumer Price Index.  
3.3 	Participation is limited to 45 percent of the principal amount of the loan or $275,000
3.4 	$400,000, whichever is less. The interest rates and repayment terms of the authority's 
3.5 	participation interest may be different from the interest rates and repayment terms of 
3.6 	the lender's retained portion of the loan.

3.7 	Sec. 7.  REPEALER.
 3.8 	Minnesota Statutes 2008, sections 41.51; 41.52; 41.53; 41.55; 41.56; 41.57; 41.58; 
3.9 	41.59; 41.60; 41.61; 41.62; 41.63; and 41.65, are repealed.