This bill modifies the grant awards under Minnesota's livestock investment grant program by amending Minnesota Statutes 2024, section 17.118, subdivisions 1, 2, and 3.

Key Changes:

1. Grant Award Structure Modification:

   • The commissioner may award grants based on the following structure:
     • 50% of the first $20,000 in qualifying expenses.
     • 20% of the next $220,000 in qualifying expenses.
   • Previously, grants were 10% of the first $500,000 in qualifying expenses.
   • Grant preference will be given to applicants who have not previously received a grant.

2. Expanded Definition of Livestock:

   • The definition of "livestock" now explicitly includes beef cattle, dairy cattle, swine, poultry, goats, mules, farmed Cervidae (deer), Ratitae (ostriches/emus), bison, sheep, horses, llamas, rabbits, donkeys, and alpacas.

3. Eligible Expenses for Grants:

   • Qualifying expenditures include:
     • Buildings or facilities for livestock production.
     • Pasture development, such as fencing, watering systems, and livestock lanes.
     • Equipment for livestock housing, feeding, waste management, and energy production, including robotic equipment, milking parlors, scales, manure storage, and on-farm processing facilities.
   • Expenses must be capitalized and deductible under federal tax codes (Sections 167 or 179 of the IRS Code).
   • Refinancing of existing debt does not qualify.

4. Eligibility Requirements:

   • Applicants must be:
     • Minnesota residents or eligible entities defined under Minnesota law.
     • The principal operator of the farm.
     • Hold a feedlot registration if required.
     • Submit proof of qualifying expenditures during the grant period.

Impact:

• This bill restructures financial support for livestock farmers by increasing grant percentages for smaller expenditures.
• It expands eligibility and qualifying expenses to include more types of livestock and related infrastructure.
• It enhances accessibility for new applicants by prioritizing those who have not received grants previously.