SB1167 Summary

• Establishes a new Agricultural Enterprise Program within the Department of Agriculture to plan, design, construct, operate, and manage infrastructure on department lands to support and promote agriculture.

• Allows the Department of Agriculture to accept transfer of agricultural enterprise lands and agricultural enterprises from the Department of Land and Natural Resources with mutual agreement and board approval.

• Creates the Agricultural Enterprise Special Fund to receive legislative appropriations and revenues from lease rents, fees, and other collections from agricultural enterprise lands, with funds used for infrastructure development and maintenance.

• Permits lessees to construct and operate agricultural enterprises on department lands through lease negotiations with specific terms including lease periods of 15 to 65 years and requirements that lessees derive major income from on-site agricultural activities.

• Provides protections for institutional lenders holding security interests in agricultural enterprise leases, including rights to new leases upon non-monetary violations and limitations on lease modifications during loan delinquency.