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Senate Study Bill 1013

Bill Text

PAG LIN
  1  1    Section 1.  Section 175.2, subsection 3, Code 2003, is
  1  2 amended to read as follows:
  1  3    3.  "Agricultural producer" means a person that engages or
  1  4 wishes to engage or intends to engage in the business of
  1  5 producing and marketing agricultural produce products or
  1  6 processing agricultural products in this state.
  1  7    Sec. 2.  Section 175.2, Code 2003, is amended by adding the
  1  8 following new subsection:
  1  9    NEW SUBSECTION.  11A.  "Livestock" means an animal
  1 10 belonging to the bovine, caprine, equine, ovine, or porcine
  1 11 species; ostriches, rheas, or emus; farm deer, as defined in
  1 12 section 481A.1; poultry; fish that are raised as part of an
  1 13 aquacultural operation; or any other animal that is kept as
  1 14 part of a farming operation for its parts or products having
  1 15 commercial value, including but not limited to its muscle
  1 16 tissue, organs, fat, blood, manure, bones, milk, wool, hide,
  1 17 pelt, feathers, eggs, semen, embryos, or honey.
  1 18    Sec. 3.  Section 175.3, subsection 1, Code 2003, is amended
  1 19 to read as follows:
  1 20    1.  The agricultural development authority is established
  1 21 within the department of agriculture and land stewardship.
  1 22 The authority is constituted a public instrumentality and
  1 23 agency of the state exercising public and essential
  1 24 governmental functions.
  1 25    a.  The authority is established to undertake programs
  1 26 which assist beginning farmers in purchasing agricultural land
  1 27 and agricultural improvements and depreciable agricultural
  1 28 property for the purpose of farming, and programs which
  1 29 provide financing to farmers for permanent soil and water
  1 30 conservation practices on agricultural land within the state
  1 31 or for the acquisition of conservation farm equipment, and to
  1 32 undertake programs to assist farmers within the state in
  1 33 financing operating expenses and cash flow requirements of
  1 34 farming, and to undertake or support programs for agricultural
  1 35 education.  The authority shall also develop programs to
  2  1 assist qualified agricultural producers within the state with
  2  2 financing other capital requirements or operating expenses.
  2  3    b.  The powers of the authority are vested in and exercised
  2  4 by a board of eleven members with nine members appointed by
  2  5 the governor subject to confirmation by the senate.  The
  2  6 treasurer of state or the treasurer's designee and the
  2  7 secretary of agriculture or the secretary's designee are ex
  2  8 officio nonvoting members.  No more than five appointed
  2  9 members shall belong to the same political party.  As far as
  2 10 possible the governor shall include within the membership
  2 11 persons who represent financial institutions experienced in
  2 12 agricultural lending, the real estate sales industry, farmers,
  2 13 beginning farmers, average taxpayers, local government, soil
  2 14 and water conservation district officials, agricultural
  2 15 educators, and other persons specially interested in family
  2 16 farm development.
  2 17    Sec. 4.  Section 175.3 subsection 5, Code 2003, is amended
  2 18 by striking the subsection.
  2 19    Sec. 5.  Section 175.4, subsections 13, 14, 15, and 17,
  2 20 Code 2003, are amended by striking the subsections.
  2 21    Sec. 6.  Section 175.4, subsections 20 through 22, Code
  2 22 2003, are amended to read as follows:
  2 23    20.  Because the Iowa economy is dependent upon the
  2 24 production, processing, and marketing of agricultural produce
  2 25 products, the inability of agricultural producers to obtain,
  2 26 retain, restructure, or service loans or other financing on a
  2 27 reasonable and an affordable basis for operating expenses,
  2 28 cash flow requirements, or capital asset acquisition or
  2 29 maintenance contributes to a general decline of the state's
  2 30 economy.
  2 31    21.  The decline in the number of beef cattle livestock
  2 32 production operations is a serious problem within the state,
  2 33 resulting in the conversion of land used for pasture to row
  2 34 crop production, which threatens to destroy a significant part
  2 35 of Iowa's agricultural base and damage the economic viability
  3  1 of the state.
  3  2    22.  It is necessary to create a program in this state to
  3  3 assist agricultural producers who have established or intend
  3  4 to establish beef cattle livestock production operations, to
  3  5 obtain adequate financing, and management assistance and
  3  6 training, and to convert land used for row crop production to
  3  7 pasture.
  3  8    Sec. 7.  Section 175.4, Code 2003, is amended by adding the
  3  9 following new subsection:
  3 10    NEW SUBSECTION.  23.  A vital need exists to provide
  3 11 agricultural education in this state, in order to better
  3 12 inform persons regarding farming, the production of
  3 13 agricultural products, the processing of agricultural
  3 14 products, and the benefits of farming as an avocation and way
  3 15 of life.
  3 16    Sec. 8.  Section 175.6, subsection 12, Code 2003, is
  3 17 amended to read as follows:
  3 18    12.  In co-operation  cooperation with other local, state,
  3 19 or federal governmental agencies or instrumentalities and
  3 20 private entities, undertake or support agricultural education
  3 21 programs, conduct studies of beginning farmer or agricultural
  3 22 producer agricultural needs, and gather and compile data
  3 23 useful to facilitate decision making.
  3 24    Sec. 9.  Section 175.8, subsection 1, unnumbered paragraph
  3 25 1, Code 2003, is amended to read as follows:
  3 26    The Upon request of the governor or a member of the general
  3 27 assembly, the authority shall submit to the governor and to
  3 28 the members of the general assembly as request it, not later
  3 29 than January 15 of each year, a complete and economically
  3 30 designed and reproduced report setting forth: status report to
  3 31 the governor or a member.  The governor or member of the
  3 32 general assembly may request that the status report contain a
  3 33 summary of the authority's activities and its finances,
  3 34 including any of the following:
  3 35    Sec. 10.  Section 175.8, subsection 2, Code 2003, is
  4  1 amended to read as follows:
  4  2    2.  The annual report shall authority may prepare a
  4  3 performance report as part of the status report or as another
  4  4 or independent report.  The performance report shall identify
  4  5 performance goals of the authority, and clearly indicate the
  4  6 extent of progress during the reporting period, in attaining
  4  7 the goals.  Where possible, results shall be expressed in
  4  8 terms of number of loans and acres of agricultural land.
  4  9    Sec. 11.  Section 175.13A, subsection 2, paragraphs b and
  4 10 c, Code 2003, are amended to read as follows:
  4 11    b.  The agricultural producer's land and farm operations
  4 12 are used to produce or process agricultural products is
  4 13 located within the state.
  4 14    c.  Based upon the agricultural producer's net worth, cash
  4 15 flow, debt-to-asset ratio, and other criteria as prescribed by
  4 16 rule of the authority, the authority determines that without
  4 17 such assistance the agricultural producer could not reasonably
  4 18 be expected to be able to obtain, retain, restructure, or
  4 19 service loans or other financing for operating expenses, cash
  4 20 flow requirements, or capital acquisition and maintenance upon
  4 21 a reasonable and affordable basis.
  4 22    Sec. 12.  Section 175.36, subsection 1, unnumbered
  4 23 paragraph 1, Code 2003, is amended to read as follows:
  4 24    The authority shall create and develop programs to assist
  4 25 agricultural producers who have established or intend to
  4 26 establish in this state, beef cattle livestock production
  4 27 operations, including but not limited to the following
  4 28 assistance:
  4 29    Sec. 13.  Section 175.36, subsection 1, paragraph a, Code
  4 30 2003, is amended to read as follows:
  4 31    a.  INSURANCE OR LOAN GUARANTEE PROGRAM.  An insurance or
  4 32 loan guarantee program to provide for the insuring or
  4 33 guaranteeing of all or part of a loan made to an agricultural
  4 34 producer for the acquisition of beef cattle livestock to
  4 35 establish or expand a feeder cattle operation.
  5  1    Sec. 14.  Section 175.36, subsection 1, paragraph b,
  5  2 unnumbered paragraph 1, Code 2003, is amended to read as
  5  3 follows:
  5  4    The authority may contract with a participating lending
  5  5 institution and a qualified agricultural producer to reduce
  5  6 the interest rate charged on a loan for the acquisition of
  5  7 beef cattle breeding stock.  The authority shall determine the
  5  8 amount that the rate is reduced, by considering the lending
  5  9 institution's customary loan rate for the acquisition of beef
  5 10 cattle breeding stock as certified to the authority by the
  5 11 lending institution.
  5 12    Sec. 15.  Section 175.36, subsection 1, paragraphs c and d,
  5 13 Code 2003, are amended to read as follows:
  5 14    c.  A COST-SHARING PROGRAM.  The authority may contract
  5 15 with an agricultural producer to reimburse the producer for
  5 16 the cost of converting land planted to row crops to pasture
  5 17 suitable for beef cattle livestock production.  However, the
  5 18 amount reimbursed shall not be more than twenty-five dollars
  5 19 per acre converted, or fifty percent of the conversion costs,
  5 20 whichever is less.  The contract shall apply to not more than
  5 21 one hundred fifty acres of row crop land converted to pasture.
  5 22 The converted land shall be utilized in beef cattle livestock
  5 23 production for a minimum of five years.  The amount to be
  5 24 reimbursed shall be reduced by the amount that the
  5 25 agricultural producer receives under any other state or
  5 26 federal program that contributes toward the cost of converting
  5 27 the same land from row crops to pasture.
  5 28    d.  A MANAGEMENT ASSISTANCE AND TRAINING PROGRAM.  The
  5 29 authority in cooperation with any agency or instrumentality of
  5 30 the federal government or with any state agency, including any
  5 31 state university or those associations organized for the
  5 32 purpose of assisting agricultural producers involved in beef
  5 33 cattle livestock production, or with any farm management
  5 34 company if such company specializes in beef cattle livestock
  5 35 production or in assisting beef cattle livestock producers, as
  6  1 prescribed by rules adopted by the authority, shall establish
  6  2 programs to train and assist agricultural producers to
  6  3 effectively manage beef cattle livestock production
  6  4 operations.
  6  5    Sec. 16.  Section 175.36, subsection 2, paragraphs b and d,
  6  6 Code 2003, are amended to read as follows:
  6  7    b.  The agricultural producer has land or other facilities
  6  8 available to establish a beef cattle livestock production
  6  9 operation as prescribed by rules of the authority.
  6 10    d.  The land or other facilities available to establish a
  6 11 beef cattle livestock production operation are located within
  6 12 the state.
  6 13    Sec. 17.  Section 175.34, Code 2003, is repealed.  
  6 14                           EXPLANATION
  6 15    This bill amends a number of provisions regarding the
  6 16 agricultural development authority (referred to as the
  6 17 "authority") established in Code chapter 175, the "Iowa
  6 18 Agricultural Development Act".  The authority is an
  6 19 instrumentality under the department of agriculture and land
  6 20 stewardship responsible for administering a number of programs
  6 21 to assist agricultural producers and farmers, including the
  6 22 beginning farmer program financed through the issuance of
  6 23 private activity bonds that are exempt from federal and state
  6 24 taxation.
  6 25    PROCESSING.  Code chapter 175 establishes programs to
  6 26 assist agricultural producers, including beginning farmers, in
  6 27 acquiring capital in order to carry out farming operations.
  6 28 Code section 175.2 defines "agricultural producer".  The
  6 29 section currently provides that an agricultural producer is a
  6 30 person engaging in the business of producing and marketing
  6 31 agricultural produce in this state.  The bill amends the
  6 32 definition to provide that it includes processing agricultural
  6 33 products.
  6 34    BONDING BY MEMBERS.  The bill strikes a provision in Code
  6 35 section 175.3 that requires a board member to provide a bond.
  7  1    The bill amends various provisions in the Code chapter that
  7  2 establish programs assisting agricultural producers, including
  7  3 Code section 175.13A.  That section authorizes the authority
  7  4 to establish a broad variety of programs to assist
  7  5 agricultural producers, including through loan guarantees,
  7  6 interest buy-downs, grants, secured or unsecured direct loans,
  7  7 secondary market purchases of loans or mortgages, or loans to
  7  8 lending institutions or lenders as provided by rules adopted
  7  9 by the authority.  The section places certain restrictions
  7 10 upon applicants.  An applicant must have farm operations in
  7 11 the state; and be unable to reasonably obtain, retain,
  7 12 restructure, or service loans or other financing.  The bill
  7 13 amends these requirements by providing that the applicant
  7 14 produce or process agricultural products in the state.  The
  7 15 bill eliminates the provision relating to the inability to
  7 16 reasonably obtain financing.
  7 17    AGRICULTURAL EDUCATION.  The bill amends various Code
  7 18 sections, including Code sections 175.3 and 175.4, to allow
  7 19 the authority to establish or support agricultural educational
  7 20 programs in order to better inform persons regarding farming,
  7 21 the production and processing of agricultural products, and
  7 22 the benefits of farming as an avocation and way of life.
  7 23    LIVESTOCK PROGRAMS.  The bill amends Code section 175.2 to
  7 24 provide a definition of livestock that includes traditional
  7 25 species of livestock and poultry as well as other animals that
  7 26 are produced for their parts or products.  Current law
  7 27 provides a definition of farming that includes aquaculture and
  7 28 hydroponics.  The chapter's provisions that provide for
  7 29 assisting operations would include assistance to livestock
  7 30 operations.
  7 31    In addition, the bill amends Code section 175.36 which
  7 32 provides programs to assist beef cattle operations.  The bill
  7 33 amends that Code section to provide for programs to assist
  7 34 livestock producers generally.  The programs include an
  7 35 insurance or loan guarantee program, an interest buy-down
  8  1 program, and a management assistance and training program.
  8  2 The program requirements that applied to beef cattle
  8  3 operations would apply to livestock operations.  For example,
  8  4 the agricultural producer qualifying for program assistance
  8  5 must be a resident of the state; hold land or other facilities
  8  6 available to establish an operation; and be an individual,
  8  7 partnership, or a family farm corporation.  In addition, the
  8  8 land or other facilities must be located within the state, the
  8  9 agricultural producer must have a net worth of $400,000 or
  8 10 less, and the agricultural producer must develop a farm unit
  8 11 conservation plan.
  8 12    REPORTING REQUIREMENTS.  Code section 175.8 requires the
  8 13 authority to submit an annual report to the governor and
  8 14 general assembly that includes a summary of its operations and
  8 15 financial condition.  The bill amends the provision to
  8 16 eliminate annual reporting and to provide that the authority
  8 17 shall submit the information upon request by the governor or a
  8 18 member of the general assembly.  Code section 175.8 also
  8 19 requires the authority to identify performance goals and
  8 20 indicate progress in attaining those goals.  The bill provides
  8 21 that the authority may undergo such an evaluation at its own
  8 22 discretion.
  8 23    SOIL CONSERVATION PROGRAMS.  Code section 175.34 requires
  8 24 the authority to establish a soil conservation loan program to
  8 25 facilitate the implementation of permanent soil and water
  8 26 conservation practices and the acquisition of conservation
  8 27 farm equipment for agricultural land within the state.  The
  8 28 bill eliminates this program by repealing Code section 175.34,
  8 29 and amending correlating provisions in Code section 175.4.  
  8 30 LSB 1232DP 80
  8 31 da/pj/5
     

Text: SSB01012                          Text: SSB01014
Text: SSB01000 - SSB01099               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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