1.1    .................... moves to amend H. F. No. 2631, the first engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. DAIRY INVESTMENT MATCHING GRANT PROGRAM.
1.4    (a) The commissioner may award a dairy investment grant equal to ten percent of
1.5qualifying expenditures of up to $50,000 made by a person who manages and milks 100 or
1.6fewer dairy cows in this state, provided the person makes qualifying expenditures from
1.7other sources that will match the amount of the grant.
1.8    (b) For purposes of this section, "qualifying expenditures" means the amount spent
1.9for the development of pasture for use by dairy animals, for the acquisition of equipment
1.10for dairy animal housing, for confinement, for animal feeding, for production and delivery
1.11of milk and other dairy products, and for waste management, including the following, if
1.12related to dairy animals in this state:
1.13    (1) freestall barns;
1.14    (2) fences;
1.15    (3) watering facilities;
1.16    (4) feed storage and handling equipment;
1.17    (5) milking parlors;
1.18    (6) robotic equipment;
1.19    (7) scales;
1.20    (8) milk storage and cooling facilities;
1.21    (9) bulk tanks;
1.22    (10) manure pumping and storage facilities;
1.23    (11) digesters;
1.24    (12) equipment used to produce energy; and
1.25    (13) on-farm processing and refrigerated trucks for delivery of milk and other dairy
1.26products.
2.1    (c) Except for qualifying pasture expenditures in paragraph (d), qualifying
2.2expenditures only include amounts that are allowed to be capitalized and deducted under
2.3either section 167 or 179 of the Internal Revenue Code in computing federal taxable
2.4income. Qualifying expenditures do not include an amount paid to refinance existing debt.
2.5    (d) Qualifying expenditures for development of pasture must not include land
2.6acquisition and are limited to soil preparation expenses, seed costs, planting costs, and
2.7weed control, which are allowed once for each acre owned or rented by a person for the
2.8use of dairy animals and developed into pasture.
2.9    (e) To be eligible for the dairy investment grant, a person must apply to the
2.10commissioner on forms prescribed by the commissioner and must include a statement of
2.11the intended qualifying expenditures, including matching qualifying expenditures, along
2.12with any proof or other documentation the commissioner may require.
2.13    (f) The commissioner shall review completed applications and award grants to
2.14eligible applicants in the order in which applications were received by the commissioner.
2.15Once funding in any fiscal year has been exhausted, the commissioner must place any
2.16additional eligible applicants on a waiting list and give them priority should additional
2.17funds become available. The commissioner shall notify in writing any applicant who
2.18applies for a grant of the decision made on the grant application and, if it is denied, the
2.19reasons for the denial.

2.20    Sec. 2. APPROPRIATION.
2.21    Notwithstanding Minnesota Statutes 2007 Supplement, section 41B.06, the
2.22commissioner of agriculture must take $250,000 from the Rural Finance Authority
2.23Revolving Loan Account and use these funds to provide grants to eligible dairy producers
2.24under the dairy investment matching grant program in section 1.

2.25    Sec. 3. EFFECTIVE DATE.
2.26    Sections 1 and 2 are effective the day following final enactment."
2.27Amend the title accordingly