HB 0493 Agricultural Contracts, Notice, Task Force, Swine
Sponsor:TATE Handling House Bill:MAXWELL
Committee:AGRI LR Number:S0506.20C
Last Action:05/15/95 - S Inf Calendar H Bills for Third Reading w/SS for SCS
Title:SCS/HS/HCS/HBs 493, 504 & 505
Effective Date:August 28, 1995
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Current Bill Summary

SCS/HS/HCS/HB 493, 504 & 505 - This act adds several new sections pertaining to agriculture.

AGRICULTURAL COOPERATIVES ADDED TO EXISTING LAWS - Agricultural cooperatives are added to existing laws regarding (1) linked deposits, farm assistance, small business and water systems loans; (2) credits for new or expanded business facilities; and (3) the Missouri technology corporation.

SOY DIESEL INCENTIVES - An incentive grant of 10 cents per gallon of soy diesel fuel produced to a qualified producer, defined in the act as a producer of soy diesel fuel whose principal place of business and facility for production of soy diesel fuel is in Missouri and who has satisfied the other requirements of the act.

The act provides for up to five hundred thousand dollars of funding per year for grants, which is equivalent to 5 million gallons of soy diesel. Grants shall be paid from the Missouri Qualified Soy Diesel Fuel Producer Incentive Fund, created in the act. Up to two hundred and fifty thousand dollars may be deposited annually in the fund from the Missouri Soybean Merchandising Council, up to one hundred and fifty thousand dollars may be transferred to the fund from General Revenue and up to one hundred thousand dollars may be transferred to the fund from petroleum violation overcharge funds.

The act requires producers to be licensed and to apply monthly for grants based upon expected production. The act terminates the program after the third year from when grants are first provided.

FINANCIAL ASSISTANCE - Any corporation or cooperative which commences "farming" will not be eligible for state assistance during the taxable year unless family farms are eligible for the same type of state assistance. Cooperatives are added to the definition of agribusinesses which are eligible to receive financial assistance (including tax relief).

AGRICULTURAL CONTRACTS - A farming corporation which offers a written contract to a Missouri farmer but retains ownership of the commodity is strongly encouraged to file an annual addendum to the report required to be filed with the Director of Agriculture. The addendum shall contain the total number of contracts the corporation enters into in Missouri and a sample contract which contains the standard provisions. More than one sample contract may be required to accurately reflect the diversity of agricultural contracts the corporation offers. If the reporter is a processor of pork or pork products, then the addendum should also contain the percentage of swine processed which are derived from the following categories:

(1) Swine acquired pursuant to a contract over which ownership is retained; (2) Swine produced by the reporting entity; and (3) Swine purchased from other producers of swine.

Each contract which is voluntarily submitted shall be accompanied by a summary written in plain, unambiguous, nontechnical terms.

ASSISTANCE BY DEPT. OF AG - Subject to appropriation, the Department of Agriculture will assist agricultural producers. The Department will assist producers by providing information and technical assistance and service in the following areas:

(1) Agricultural production contracts; (2) New technologies; (3) Networking opportunities; (4) Formation of agricultural cooperatives; (5) Price discovery and reporting processes; and (6) Genetic technologies and improvements.

NOTICE - Prior to the purchase in fee simple or any contractual agreement with the owners of any real property which is to be used for swine production or waste holding facilities by a permitted concentrated swine feeding operation with wet handling waste facilities designed for a maximum capacity equal to or greater than 18,000 swine units, the swine feeding operation must provide the following information to the county governing body, the county recorder of deeds, the largest newspaper in the county, the local office of natural resources conservation service, and all water suppliers in the county(ies) in which the real property is located:

(1) The number of hogs; (2) The waste handling plan and general layout of the operation; (3) The density of swine per acre; (4) The expected duration of operations; and (5) The name, address, and registered agent for this operation.

"Swine units" is defined as those swine above the weight of fifty-five pounds.

PILOT PROJECT - Subject to appropriations, a pilot project is created within the University of Missouri-Columbia Alternatives Center which shall provide assistance to agricultural producers in the following areas:

(1) Cooperative marketing of agricultural products; (2) Cooperative processing of agricultural products; (3) Development of regional and niche markets; and (4) Dissemination of the most modern information and technology related to agricultural production, processing and marketing.

The Missouri Alternatives Center and the Department of Agriculture shall submit a report to the General Assembly by December 1 of every year, beginning in 1996.

This pilot project shall expire on August 28, 2000.

FORMATION OF A COOPERATIVE - A cooperative may be formed for the purpose of producing livestock. Only entities with less than 10 employees will be permitted to become members in a cooperative. A cooperative may be formed with five or more members. No single entity may retain more than 30% in any single grain processing or livestock slaughtering cooperative.

TAX CREDITS - In order to receive a tax credit:

(1) A cooperative must be certified by the Department of Agriculture. Only a cooperative formed under Chapter 274 for the sole purpose of processing and marketing may be certified.

(2) The Department of Economic Development must issue a tax certificate to an investor in a certified cooperative.

(a) Limits on certification of tax credits:

1. Total qualified investments=$15M (tax credit=30% of qualified investment) 2. $3M qualified investment per year 3. $1M of tax credits per cooperative 4. $50,000 per investor limit on tax credit.

(b) The tax credits may be sold, transferred or assigned by notarized endorsement.

(3) The investor must attach the tax credit certificate to the investor's tax return.