1.1                          A bill for an act 
  1.2             relating to agriculture; providing additional funding 
  1.3             for a dairy diagnostics and modernization program; 
  1.4             appropriating money.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [APPROPRIATION; DAIRY DIAGNOSTICS AND 
  1.7   MODERNIZATION PROGRAM.] 
  1.8      (a) $2,300,000 in fiscal year 2002 and $2,500,000 in fiscal 
  1.9   year 2003 are appropriated from the general fund to the 
  1.10  commissioner of agriculture for grants to continue the dairy 
  1.11  diagnostics and modernization program under Laws 1997, chapter 
  1.12  216, section 7, subdivision 2, and to expand the program to 
  1.13  include additional dairy business planning and modernization 
  1.14  activities.  Grants from this appropriation and from base level 
  1.15  funding must require periodic reports to the commissioner on the 
  1.16  aggregate changes in producer financial stability, productivity, 
  1.17  product quality, animal health, environmental protection, and 
  1.18  other performance measures attributable to the dairy diagnostics 
  1.19  and modernization program.  Information reported to the 
  1.20  commissioner must be sufficient to establish regional and 
  1.21  statewide performance benchmarks for the dairy industry. 
  1.22     (b) While designing and implementing the program under this 
  1.23  section, the commissioner must consult with the dairy leaders 
  1.24  roundtable; appropriate producer and processor groups; the 
  1.25  Minnesota state colleges and universities system; the Minnesota 
  2.1   extension service; farm credit services; and other agricultural 
  2.2   lending institutions. 
  2.3      (c) Of this amount $1,200,000 the first year and $1,200,000 
  2.4   the second year are for the activities of dairy diagnostic teams.
  2.5   The commissioner must make grants, under contract, to regional 
  2.6   or statewide organizations qualified to manage the several 
  2.7   components of the dairy diagnostics and modernization program.  
  2.8   Each regional or statewide organization must designate a 
  2.9   coordinator responsible for overseeing the program and making 
  2.10  required reports to the commissioner.  Diagnostic teams are 
  2.11  encouraged to engage in activities including, but not limited 
  2.12  to, comprehensive financial analysis, risk management education, 
  2.13  enhanced milk marketing tools and technologies, five-year 
  2.14  business plans, and design and engineering costs.  Up to 40 
  2.15  percent of the appropriation under this paragraph is for 
  2.16  environmental grants to assist producers with technical and 
  2.17  environmental compliance support services needed to implement 
  2.18  dairy quality environmental assurance practices.  A producer is 
  2.19  eligible for support under any program in this section for no 
  2.20  more than three consecutive calendar years.  
  2.21     (d) Of this amount up to $2,000,000 may be used as grants 
  2.22  to producers to develop comprehensive five-year business plans. 
  2.23     (e) The regional or statewide organizations must provide 
  2.24  required reports to the commissioner in a format that maintains 
  2.25  the confidentiality of business information related to any 
  2.26  single dairy producer. 
  2.27     (f) These appropriations are in addition to base level 
  2.28  funding and are one-time appropriations.