MN HF278

Commissioner of agriculture must solicit proposals for acquisition or dedication of large agricultural tracts to establish organic agriculture production and demonstration zones, sized to buffer organic from conventional production and demonstrate nontraditional and cover crops on commercial scale.

Commissioner must assist selected proposers with property acquisition, recruitment of agricultural producers, crop insurance acquisition, and market development for nontraditional and cover crops grown in the zone.

Commissioner must report annually by January 15 to legislative committees on agriculture policy and finance regarding zone activities and outcomes.

Property classified as class 2a used for organic production within the demonstration zone is eligible for an agricultural property tax credit equal to a specified dollar amount times the number of acres, in addition to other agricultural credits.

Applications for the organic production tax credit must be filed with county assessor by June 30 of the assessment year; credit becomes effective for taxes payable in 2018, with an extended application deadline of August 31, 2017 for the first year.