Text: HSB00226 Text: HSB00228 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 7C.4A, subsection 4, Code 2001, is 1 2 amended to read as follows: 1 3 4. Twenty-one percent of the state ceiling shall be 1 4 allocated to the agricultural development authority 1 5 established pursuant to section 175.3, for qualified small 1 6 issue bonds issuedforto assist first-time farmers and 1 7 agricultural producers, as provided in chapter 175. However, 1 8 at any time during the calendar year thegovernor's designee,1 9with the approval of the Iowa agricultural development1 10authority,agricultural development authority's board may 1 11 determine that a lesser amount need be allocatedtofor 1 12 qualified small issue bondsforto assist first-time farmers 1 13 and agricultural producers, and on that date this lesser 1 14 amount shall be the amount allocated for those bonds and the 1 15 excess shall be allocated under subsection 7. 1 16 Sec. 2. Section 175.2, subsection 3, Code 2001, is amended 1 17 to read as follows: 1 18 3. "Agricultural producer" means a person that engages or 1 19wishes to engage orintends to engage in the business of 1 20 producing and marketing agriculturalproduceproducts or 1 21 processing agricultural products in this state. 1 22 Sec. 3. Section 175.2, Code 2001, is amended by adding the 1 23 following new subsection: 1 24 NEW SUBSECTION. 11A. "Livestock" means an animal 1 25 belonging to the bovine, caprine, equine, ovine, or porcine 1 26 species; ostriches, rheas, or emus; farm deer, as defined in 1 27 section 481A.1; poultry; fish that are raised as part of an 1 28 aquacultural operation; or any other animal that is kept as 1 29 part of a farming operation for its parts or products having 1 30 commercial value, including but not limited to its muscle 1 31 tissue, organs, fat, blood, manure, bones, milk, wool, hide, 1 32 pelt, feathers, eggs, semen, embryos, or honey. 1 33 Sec. 4. Section 175.3, subsection 1, Code 2001, is amended 1 34 to read as follows: 1 35 1. The agricultural development authority is established 2 1 within the department of agriculture and land stewardship. 2 2 The authority is constituted a public instrumentality and 2 3 agency of the state exercising public and essential 2 4 governmental functions. 2 5 a. The authority is established to undertake programs 2 6 which assist beginning farmers in purchasing agricultural land 2 7 and agricultural improvements and depreciable agricultural 2 8 property for the purpose of farming,and programs which2 9provide financing to farmers for permanent soil and water2 10conservation practices on agricultural land within the state2 11or for the acquisition of conservation farm equipment, andto 2 12 undertake programs to assist farmers within the state in 2 13 financing operating expenses and cash flow requirements of 2 14 farming, and to undertake or support programs for agricultural 2 15 education. The authority shall also develop programs to 2 16 assist qualified agricultural producers within the state with 2 17 financing other capital requirements or operating expenses. 2 18 b. The powers of the authority are vested in and exercised 2 19 by a board of eleven members with nine members appointed by 2 20 the governor subject to confirmation by the senate. The 2 21 treasurer of state or the treasurer's designee and the 2 22 secretary of agriculture or the secretary's designee are ex 2 23 officio nonvoting members. No more than five appointed 2 24 members shall belong to the same political party. As far as 2 25 possible the governor shall include within the membership 2 26 persons who represent financial institutions experienced in 2 27 agricultural lending, the real estate sales industry, farmers, 2 28 beginning farmers, average taxpayers, local government, soil 2 29 and water conservation district officials, agricultural 2 30 educators, and other persons specially interested in family 2 31 farm development. 2 32 Sec. 5. Section 175.3 subsection 5, Code 2001, is amended 2 33 by striking the subsection. 2 34 Sec. 6. Section 175.4, subsections 13, 14, 15, and 17, 2 35 Code 2001, are amended by striking the subsections. 3 1 Sec. 7. Section 175.4, subsections 20 through 22, Code 3 2 2001, are amended to read as follows: 3 3 20. Because the Iowa economy is dependent upon the 3 4 production, processing, and marketing of agriculturalproduce3 5 products, the inability of agricultural producers to obtain, 3 6 retain, restructure, or service loans or other financing on a 3 7 reasonable and an affordable basis for operating expenses, 3 8 cash flow requirements, or capital asset acquisition or 3 9 maintenance contributes to a general decline of the state's 3 10 economy. 3 11 21. The decline in the number ofbeef cattlelivestock 3 12 production operations is a serious problem within the state, 3 13 resulting in the conversion of land used for pasture to row 3 14 crop production, which threatens to destroy a significant part 3 15 of Iowa's agricultural base and damage the economic viability 3 16 of the state. 3 17 22. It is necessary to create a program in this state to 3 18 assist agricultural producers who have established or intend 3 19 to establishbeef cattlelivestock production operations, to 3 20 obtain adequate financing, and management assistance and 3 21 training, and to convert land used for row crop production to 3 22 pasture. 3 23 Sec. 8. Section 175.4, Code 2001, is amended by adding the 3 24 following new subsection: 3 25 NEW SUBSECTION. 23. A vital need exists to provide 3 26 agricultural education in this state, in order to better 3 27 inform persons regarding farming, the production of 3 28 agricultural products, the processing of agricultural 3 29 products, and the benefits of farming as an avocation and way 3 30 of life. 3 31 Sec. 9. Section 175.6, subsection 12, Code 2001, is 3 32 amended to read as follows: 3 33 12. Inco-operationcooperation with other local, state, 3 34 or federal governmental agencies or instrumentalities and 3 35 private entities, undertake or support agricultural education 4 1 programs, conduct studies of beginning farmer or agricultural 4 2 producer agricultural needs, and gather and compile data 4 3 useful to facilitate decision making. 4 4 Sec. 10. Section 175.8, subsection 1, unnumbered paragraph 4 5 1, Code 2001, is amended to read as follows: 4 6TheUpon request of the governor or a member of the general 4 7 assembly, the authority shall submitto the governor and to4 8the members of the general assembly as request it, not later4 9than January 15 of each year,acomplete and economically4 10designed and reproduced report setting forth:status report. 4 11 The governor or member of the general assembly may request 4 12 that the status report contain a summary of the authority's 4 13 activities and its finances, including any of the following: 4 14 Sec. 11. Section 175.8, subsection 2, Code 2001, is 4 15 amended to read as follows: 4 16 2. Theannual report shallauthority may prepare a 4 17 performance report as part of the status report or as another 4 18 or independent report. The status report shall identify 4 19 performance goals of the authority, and clearly indicate the 4 20 extent of progress during the reporting period, in attaining 4 21 the goals. Where possible, results shall be expressed in 4 22 terms of number of loans and acres of agricultural land. 4 23 Sec. 12. Section 175.13A, subsection 2, paragraphs b and 4 24 c, Code 2001, are amended to read as follows: 4 25 b. The agricultural producer's landand farm operations4 26areused to produce or process agricultural products is 4 27 located within the state. 4 28c. Based upon the agricultural producer's net worth, cash4 29flow, debt-to-asset ratio, and other criteria as prescribed by4 30rule of the authority, the authority determines that without4 31such assistance the agricultural producer could not reasonably4 32be expected to be able to obtain, retain, restructure, or4 33service loans or other financing for operating expenses, cash4 34flow requirements, or capital acquisition and maintenance upon4 35a reasonable and affordable basis.5 1 Sec. 13. Section 175.36, subsection 1, unnumbered 5 2 paragraph 1, Code 2001, is amended to read as follows: 5 3 The authority shall create and develop programs to assist 5 4 agricultural producers who have established or intend to 5 5 establish in this state,beef cattlelivestock production 5 6 operations, including but not limited to the following 5 7 assistance: 5 8 Sec. 14. Section 175.36, subsection 1, paragraph a, Code 5 9 2001, is amended to read as follows: 5 10 a. INSURANCE OR LOAN GUARANTEE PROGRAM. An insurance or 5 11 loan guarantee program to provide for the insuring or 5 12 guaranteeing of all or part of a loan made to an agricultural 5 13 producer for the acquisition ofbeef cattlelivestock to 5 14 establish or expand a feeder cattle operation. 5 15 Sec. 15. Section 175.36, subsection 1, paragraph b, 5 16 unnumbered paragraph 1, Code 2001, is amended to read as 5 17 follows: 5 18 b. The authority may contract with a participating lending 5 19 institution and a qualified agricultural producer to reduce 5 20 the interest rate charged on a loan for the acquisition of 5 21beef cattlebreeding stock. The authority shall determine the 5 22 amount that the rate is reduced, by considering the lending 5 23 institution's customary loan rate for the acquisition ofbeef5 24cattlebreeding stock as certified to the authority by the 5 25 lending institution. 5 26 Sec. 16. Section 175.36, subsection 1, paragraphs c and d, 5 27 Code 2001, are amended to read as follows: 5 28 c. A COST-SHARING PROGRAM. The authority may contract 5 29 with an agricultural producer to reimburse the producer for 5 30 the cost of converting land planted to row crops to pasture 5 31 suitable forbeef cattlelivestock production. However, the 5 32 amount reimbursed shall not be more than twenty-five dollars 5 33 per acre converted, or fifty percent of the conversion costs, 5 34 whichever is less. The contract shall apply to not more than 5 35 one hundred fifty acres of row crop land converted to pasture. 6 1 The converted land shall be utilized inbeef cattlelivestock 6 2 production for a minimum of five years. The amount to be 6 3 reimbursed shall be reduced by the amount that the 6 4 agricultural producer receives under any other state or 6 5 federal program that contributes toward the cost of converting 6 6 the same land from row crops to pasture. 6 7 d. A MANAGEMENT ASSISTANCE AND TRAINING PROGRAM. The 6 8 authority in cooperation with any agency or instrumentality of 6 9 the federal government or with any state agency, including any 6 10 state university or those associations organized for the 6 11 purpose of assisting agricultural producers involved inbeef6 12cattlelivestock production, or with any farm management 6 13 company if such company specializes inbeef cattlelivestock 6 14 production or in assistingbeef cattlelivestock producers, as 6 15 prescribed by rules adopted by the authority, shall establish 6 16 programs to train and assist agricultural producers to 6 17 effectively managebeef cattlelivestock production 6 18 operations. 6 19 Sec. 17. Section 175.36, subsection 2, paragraphs b and d, 6 20 Code 2001, are amended to read as follows: 6 21 b. The agricultural producer has land or other facilities 6 22 available to establish abeef cattlelivestock production 6 23 operation as prescribed by rules of the authority. 6 24 d. The land or other facilities available to establish a 6 25beef cattlelivestock production operation are located within 6 26 the state. 6 27 Sec. 18. Section 175.34, Code 2001, is repealed. 6 28 EXPLANATION 6 29 This bill amends a number of provisions regarding the 6 30 agricultural development authority (referred to as the 6 31 "authority") established in Code chapter 175, the "Iowa 6 32 Agricultural Development Act". The authority is an 6 33 instrumentality under the department of agriculture and land 6 34 stewardship responsible for administering a number of programs 6 35 to assist agricultural producers and farmers, including the 7 1 beginning farmer program financed through the issuance of 7 2 private activity bonds that are exempt from federal and state 7 3 taxation. 7 4 BONDING. Code section 7C.4A allocates a ceiling among the 7 5 various governmental units authorized to issue private 7 6 activity bonds under that the laws of this state. The section 7 7 allocates a percentage of the state ceiling for a number of 7 8 public purposes, including housing, job training, and 7 9 education. Twenty-one percent of the state ceiling is 7 10 allocated to qualified small issue bonds issued for "first- 7 11 time" farmers under programs administered by the authority. 7 12 The section permits the governor's designee, with the approval 7 13 of the authority, to determine that a lesser amount need be 7 14 allocated to qualified small issue bonds. This bill 7 15 eliminates participation by the governor's designee in that 7 16 decision. It also provides that the bonds may be used to 7 17 assist agricultural producers rather than "first-time 7 18 farmers." 7 19 PROCESSING. Code chapter 175 establishes programs to 7 20 assist agricultural producers, including beginning farmers, in 7 21 acquiring capital in order to carry out farming operations. 7 22 Code section 175.2 defines "agricultural producer". The 7 23 section currently provides that an agricultural producer is a 7 24 person engaging in the business of producing and marketing 7 25 agricultural produce in this state. The bill amends the 7 26 definition to provide that it includes processing agricultural 7 27 products. 7 28 BONDING BY MEMBERS. The bill strikes a provision in Code 7 29 section 175.3 that requires a board member to provide a bond. 7 30 The bill amends various provisions in the Code chapter that 7 31 establish programs assisting agricultural producers, including 7 32 Code section 175.13A. That section authorizes the authority 7 33 to establish a broad variety of programs to assist 7 34 agricultural producers, including through loan guarantees, 7 35 interest buy-downs, grants, secured or unsecured direct loans, 8 1 secondary market purchases of loans or mortgages, or loans to 8 2 lending institutions or lenders as provided by rules adopted 8 3 by the authority. The section places certain restrictions 8 4 upon applicants. An applicant must have farm operations in 8 5 the state; and be unable to reasonably obtain, retain, 8 6 restructure, or service loans or other financing. The bill 8 7 amends these requirements by providing that the applicant 8 8 produce or process agricultural products in the state. The 8 9 bill eliminates the provision relating to the inability to 8 10 reasonably obtain financing. 8 11 AGRICULTURAL EDUCATION. The bill amends various Code 8 12 sections, including Code sections 175.3 and 175.4, to allow 8 13 the authority to establish or support agricultural educational 8 14 programs in order to better inform persons regarding farming, 8 15 the production and processing of agricultural products, and 8 16 the benefits of farming as an avocation and way of life. 8 17 LIVESTOCK PROGRAMS. The bill amends Code section 175.2 to 8 18 provide a definition of livestock that includes traditional 8 19 species of livestock and poultry as well as other animals that 8 20 are produced for their parts or products. Current law 8 21 provides a definition of farming that includes aquaculture and 8 22 hydroponics. The chapter's provisions that provide for 8 23 assisting operations would include assistance to livestock 8 24 operations. 8 25 REPORTING REQUIREMENTS. Code section 175.8 requires the 8 26 authority to submit an annual report to the governor and 8 27 general assembly that includes a summary of its operations and 8 28 financial condition. The bill amends the provision to 8 29 eliminate annual reporting and to provide that the authority 8 30 shall submit the information upon request by the governor or a 8 31 member of the general assembly. Code section 175.8 also 8 32 requires the authority to identify performance goals and 8 33 indicate progress in attaining those goals. The bill provides 8 34 that the authority may undergo such an evaluation at its own 8 35 discretion. 9 1 In addition, the bill amends Code section 175.36 which 9 2 provides programs to assist beef cattle operations. The bill 9 3 amends that Code section to provide for programs to assist 9 4 livestock producers generally. The programs include an 9 5 insurance or loan guarantee program, an interest buy-down 9 6 program, and a management assistance and training program. 9 7 The program requirements that applied to beef cattle 9 8 operations would apply to livestock operations. For example, 9 9 the agricultural producer qualifying for program assistance 9 10 must be a resident of the state; hold land or other facilities 9 11 available to establish an operation; and be an individual, 9 12 partnership, or a family farm corporation. In addition, the 9 13 land or other facilities must be located within the state, the 9 14 agricultural producer must have a net worth of $400,000 or 9 15 less, and the agricultural producer must develop a farm unit 9 16 conservation plan. 9 17 SOIL CONSERVATION PROGRAMS. Code section 175.34 requires 9 18 the authority to establish a soil conservation loan program to 9 19 facilitate the implementation of permanent soil and water 9 20 conservation practices and the acquisition of conservation 9 21 farm equipment for agricultural land within the state. The 9 22 bill eliminates this program by repealing Code section 175.34, 9 23 and amending correlating provisions in Code section 175.4. 9 24 LSB 2673HC 79 9 25 da/pj/5.1
Text: HSB00226 Text: HSB00228 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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