Section 1. Section 7E.7, subsection 2, Code 2003, is amended to read as follows:

2. The agricultural development authority as established

in section 175.3 shall be considered part of the department of

agriculture and land stewardship. The department of

agriculture and land stewardshipoffice of treasurer of state.

The office may provide staff assistance and administrative

support to the authority.

Sec. 2. Section 175.3, subsection 1, Code 2003, is amended to read as follows:

1. a. The agricultural development authority is

established within the department of agriculture and land

stewardshipoffice of treasurer of state. The authority is

constituted as a public instrumentality and agency of the

state exercising public and essential governmental functions.

b. The authority is established to undertake programs

which assist beginning farmers in purchasing agricultural land

and agricultural improvements and depreciable agricultural

property for the purpose of farming, and programs which

provide financing to farmers for permanent soil and water

conservation practices on agricultural land within the state

or for the acquisition of conservation farm equipment, and

programs to assist farmers within the state in financing

operating expenses and cash flow requirements of farming. The

authority shall also develop programs to assist qualified

agricultural producers within the state with financing other

capital requirements or operating expenses.

c. The powers of the authority are vested in and exercised

by a board of eleventen members with nine members appointed

by the governor subject to confirmation by the senate. The

treasurer of state or the treasurer's designee and the

secretary of agriculture or the secretary's designee areshall

serve as an ex officio nonvoting membersmember. No more than

five appointed members shall belong to the same political

party. As far as possible the governor shall include within

the membership persons who represent financial institutions

experienced in agricultural lending, the real estate sales

industry, farmers, beginning farmers, average taxpayers, local

government, soil and water conservation district officials,

agricultural educators, and other persons specially interested

in family farm development.

Sec. 3. Section 175.7, subsection 1, Code 2003, is amended to read as follows:

1. The executive director of the authority shall be

appointed by a selection and tenure committee, which shall

consist of the secretary of agriculture and the chairperson

andof the board, the vice chairperson of the board,

established pursuant to section 175.3and one member elected

by the board, or their designees. The executive director

shall serve at the pleasure of the committeeboard. The votes

of three members of the committee are necessary for any

substantive action taken by the committee, except that two

members may take a substantive action, if the secretary has a

conflict of interest. If a member other than the secretary

has a conflict of interest, the board shall appoint a

substitute member of the committee from the appointed members

of the board for the duration of the conflict of interest.

The executive director shall be selected primarily for

administrative ability and knowledge in the field, without

regard to political affiliation.