SB 760 - The following changes are made by this act:

ETHANOL PRODUCER INCENTIVE FUND

These sections (142.028 and 142.029) are repealed and reenacted as they exist in the state of Minnesota. Differences in existing law include:

(1) Payments from the fund shall only be made to producers at plants which are 85% or more owned by producers of agricultural products.

(2) Production must begin before June 30, 2000.

(3) Payments are for a ten year period. Current law is for a maximum of 60 months.

(4) The amount of the payments shall be 20 cents per gallon of ethanol or anhydrous alcohol regardless of the gallons produced. Currently, the payments are 20 cents per gallon for the first 12.5 million gallons and 5 cents per gallon for the next 12.5 million gallons.

(5) Ethanol plants which use closed-loop biomass in a cogeneration facility are eligible for a payment in the amount of 1.05 cents for each kilowatt hour of electricity generated. Total payments in each fiscal year may not exceed $750,000 under this provision.

(6) Total payments to all producers in a fiscal year may not exceed $30M, while payments to individual producers in a fiscal year may not exceed $3M.

COOPERATIVE LAW

Section 274.030 is amended to allow five owners or operators of a family farm or a family farm corporation to form a livestock production cooperative.

Section 274.310 requires the Department of Agriculture to provide assistance to agricultural producers regarding cooperative marketing, cooperative processing, the development of regional and niche markets and the most modern information and technology related to agricultural production.
TOM CRAWFORD