Text: HSB00226                          Text: HSB00228
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 227

Bill Text

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 issued for to assist first-time farmers and
  1  7 agricultural producers, as provided in chapter 175.  However,
  1  8 at any time during the calendar year the governor's designee,
  1  9 with the approval of the Iowa agricultural development
  1 10 authority, agricultural development authority's board may
  1 11 determine that a lesser amount need be allocated to for
  1 12 qualified small issue bonds for to 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 19 wishes to engage or intends to engage in the business of
  1 20 producing and marketing agricultural produce products 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 which
  2  9 provide financing to farmers for permanent soil and water
  2 10 conservation practices on agricultural land within the state
  2 11 or for the acquisition of conservation farm equipment, and to
  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 agricultural produce
  3  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 of beef cattle livestock
  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 establish beef cattle livestock 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.  In co-operation  cooperation 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  6    The Upon request of the governor or a member of the general
  4  7 assembly, the authority shall submit to the governor and to
  4  8 the members of the general assembly as request it, not later
  4  9 than January 15 of each year, a complete and economically
  4 10 designed 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.  The annual report shall authority 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 land and farm operations
  4 26 are used to produce or process agricultural products is
  4 27 located within the state.
  4 28    c.  Based upon the agricultural producer's net worth, cash
  4 29 flow, debt-to-asset ratio, and other criteria as prescribed by
  4 30 rule of the authority, the authority determines that without
  4 31 such assistance the agricultural producer could not reasonably
  4 32 be expected to be able to obtain, retain, restructure, or
  4 33 service loans or other financing for operating expenses, cash
  4 34 flow requirements, or capital acquisition and maintenance upon
  4 35 a 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 cattle livestock 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 of beef cattle livestock 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 21 beef cattle breeding 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 of beef
  5 24 cattle breeding 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 for beef cattle livestock 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 in beef cattle livestock
  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 in beef
  6 12 cattle livestock production, or with any farm management
  6 13 company if such company specializes in beef cattle livestock
  6 14 production or in assisting beef cattle livestock 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 manage beef cattle livestock 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 a beef cattle livestock production
  6 23 operation as prescribed by rules of the authority.
  6 24    d.  The land or other facilities available to establish a
  6 25 beef cattle livestock 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

© 2001 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Fri Mar 23 03:35:27 CST 2001
URL: /DOCS/GA/79GA/Legislation/HSB/00200/HSB00227/010313.html
jhf