HCS SS SCS SB 740, 886 & 1178 -- AGRICULTURE PROGRAMS

SPONSOR:  Klindt (Myers)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 24 to 0.

This substitute makes changes to the laws regarding agriculture.

TAX CREDITS

The substitute allows tax credits to be taken against estimated
quarterly taxes paid for:

(1)  Investments in eligible new generation cooperatives or
eligible new generation processing entities; and

(2)  Contributions to the Agricultural Product Utilization Grant
Fund.

These tax credits may be carried back three tax years.

The substitute adds eligible new generation cooperatives,
eligible new generation processing entities, and agricultural
product utilization contributor tax credits to the restriction
that the tax credits taken against insurance premiums will not
reduce moneys transferred to the county stock insurance fund.
The fund will be included in the calculations of state revenue.

The substitute decreases the required number of employees in an
employee-qualified capital project from 100 to 60 for investors
to receive a New Generation Cooperative Incentive Tax Credit.

GROWER DISTRICTS

The substitute allows for the formation of grower districts.  A
grower district will allow owners or operators of land to enter
into common agreements to produce commercial crops within the
district's boundaries.

CLOSED RECORDS

The substitute clarifies that records and documents that may
endanger the competitiveness of a small business submitted to the
Department of Agriculture or the Agricultural and Small Business
Development Authority for grant or loan qualification are deemed
closed.  The amount and recipient of any loan or grant
administered by the authority are public records.

MEAT INSPECTION

The substitute requires the Director of the Department of
Agriculture to promulgate rules consistent with the Federal Meat
Inspection Act, the Federal Poultry Products Inspection Act, and
all related federal regulations necessary to implement the meat
inspection programs of the state.

ANIMAL HEALTH

The substitute repeals obsolete provisions regarding animal
health and inspections.

AGRICULTURAL BUSINESS DEVELOPMENT LOAN GUARANTEES

Currently, the Missouri Agricultural and Small Business
Development Authority issues certificates of guaranty covering a
first loss guarantee up to 25% of an agricultural business
development loan, up to $250,000.  The substitute increases the
guarantee to up to 50% of a loan.

The substitute also decreases from 40% to 20% the immediate
redemption amount of the outstanding loans guaranteed by way of
the Agricultural Product Utilization and Business Development
Loan Guarantee Fund.

BOLL WEEVIL ERADICATION ASSESSMENTS

Currently, pursuant to the Missouri Boll Weevil Suppression
Eradication Act, a cotton grower who fails to pay assessments is
subject to a per-acre penalty.  The substitute provides that in
addition to other remedies for the collection of delinquent
assessments, including penalties and interest, the Department of
Agriculture will have an assessment lien covering any current or
future cotton crop grown by the producer and the proceeds of the
cotton sale until the assessment, penalties, and interest are
paid in full.  The department will be subject to certain
notification and procedural requirements.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the bill contains several
modifications to existing programs and enables the formation of
grower districts which will make Missouri more attractive to
specialty crops used to produce pharmaceuticals.

Testifying for the bill were Senator Klindt; Department of
Agriculture; Missouri Farm Bureau; Missouri Agricultural
Industries Council; Missouri Cattlemens Association; Missouri
Corn Growers Association; and Missouri Soybean Association.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am