HOUSE AMENDED
PRIOR PRINTER'S NOS. 791, 2416 PRINTER'S NO. 2499
No. 728 Session of 1993
INTRODUCED BY MADIGAN, STAPLETON, WENGER, HELFRICK, BELAN,
ROBBINS, MUSTO, REIBMAN, JUBELIRER, MOWERY AND RHOADES,
MARCH 26, 1993
AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 14, 1994
AN ACT
1 Providing for the implementation of a loan program for farmers
2 adopting certain specialized agricultural practices.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Agriculture-
7 Linked Investment Program.
8 Section 2. Legislative intent.
9 It is the intent of the General Assembly that farmers be
10 offered an incentive to encourage the adoption of agricultural
11 best management practices as a part of a nutrient management
12 plan, to prevent nutrients from washing off fields and entering
13 streams and to prevent soil erosion. These incentives shall take
14 the form of low-interest capital in exchange for the adoption of
15 a nutrient management plan.
16 Section 3. Definitions.
1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Best management practices." Specialized practices designed <--
5 to control erosion, control runoff, establish vegetation and
6 manage nutrient animal wastes and fertilizers or other practices
7 approved by the State Conservation Commission, an equivalent
8 agency or the United States Agriculture Stabilization and
9 Conservation Service. A PRACTICE OR COMBINATION OF PRACTICES <--
10 DETERMINED BY THE STATE CONSERVATION COMMISSION PURSUANT TO THE
11 ACT OF MAY 20, 1993 (P.L.12, NO.6), KNOWN AS THE NUTRIENT
12 MANAGEMENT ACT, TO BE EFFECTIVE AND PRACTICABLE (GIVEN
13 TECHNOLOGICAL, ECONOMIC AND INSTITUTIONAL CONSIDERATIONS) TO
14 MANAGE NUTRIENTS TO PROTECT SURFACE AND GROUNDWATER TAKING INTO
15 ACCOUNT APPLICABLE NUTRIENT REQUIREMENTS FOR CROP UTILIZATION.
16 BEST MANAGEMENT PRACTICES SHALL INCLUDE, BUT NOT BE LIMITED TO:
17 (1) CONSERVATION TILLAGE.
18 (2) CROP ROTATION.
19 (3) SOIL TESTING.
20 (4) MANURE TESTING.
21 (5) DIVERSIONS.
22 (6) MANURE STORAGE FACILITIES.
23 (7) STORM WATER MANAGEMENT PRACTICES.
24 (8) NUTRIENT APPLICATION.
25 "Eligible borrower." A Commonwealth farmer who adopts best
26 management practices, as evidenced by a nutrient management
27 plan.
28 "Nutrient management plan." A system of best management <--
29 practices to prevent the pollution of surface waters and
30 groundwater by addressing the most critical farm nutrient
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1 problems through measures to manage fertilizers and animal
2 wastes and to reduce soil erosion.
3 Section 4. Implementation.
4 The procedures applicable to the Agriculture-Linked
5 "NUTRIENT MANAGEMENT PLAN." A WRITTEN SITE-SPECIFIC PLAN <--
6 WHICH INCORPORATES BEST MANAGEMENT PRACTICES TO MANAGE THE USE
7 OF PLANT NUTRIENTS FOR CROP PRODUCTION AND WATER QUALITY
8 PROTECTION CONSISTENT WITH THE CRITERIA ESTABLISHED PURSUANT TO
9 THE ACT OF MAY 20, 1993 (P.L.12, NO.6), KNOWN AS THE NUTRIENT
10 MANAGEMENT ACT.
11 SECTION 4. AGRICULTURE-LINKED INVESTMENT PROGRAM; ELIGIBILITY
12 AND IMPLEMENTATION.
13 (A) ELIGIBILITY.--OPERATORS OF CONCENTRATED ANIMAL
14 OPERATIONS WHICH DEVELOP AND IMPLEMENT NUTRIENT MANAGEMENT PLANS
15 PURSUANT TO THE ACT OF MAY 20, 1993 (P.L.12, NO.6), KNOWN AS THE
16 NUTRIENT MANAGEMENT ACT, SHALL BE ELIGIBLE FOR AN AGRICULTURE-
17 LINKED INVESTMENT LOAN UNDER THIS ACT. PRIORITY FOR SUCH LOAN
18 ASSISTANCE, HOWEVER, SHALL BE GIVEN TO THOSE OPERATORS OF
19 CONCENTRATED ANIMAL OPERATIONS WHO PURSUANT TO SECTION 6(G) OF
20 THE NUTRIENT MANAGEMENT ACT HAVE BEEN GRANTED AN EXTENSION BY
21 THE STATE CONSERVATION COMMISSION TO IMPLEMENT AN APPROVED
22 NUTRIENT MANAGEMENT PLAN. DOCUMENTATION THAT A NUTRIENT
23 MANAGEMENT PLAN HAS BEEN APPROVED FOR IMPLEMENTATION SHALL BE
24 SUBMITTED WITH AN APPLICATION FOR AN AGRICULTURE-LINKED
25 INVESTMENT LOAN. IN NO CASE SHALL THE STATE TREASURER APPROVE AN
26 APPLICATION FOR A LOAN UNDER THIS ACT UNTIL THE DOCUMENTATION
27 REQUIRED UNDER THIS SUBSECTION IS RECEIVED.
28 (B) IMPLEMENTATION OF PROGRAM.--THE PROCEDURES APPLICABLE TO
29 THE AGRICULTURE-LINKED Investment Program are as follows:
30 (1) Lending institutions wishing to participate in this
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1 program shall enter into an investment agreement with the
2 Commonwealth.
3 (2) A lending institution shall accept and review
4 applications for loans from eligible borrowers.
5 (3) The lending institution shall apply all usual
6 lending standards to determine the creditworthiness of each
7 eligible borrower.
8 (4) Upon its approval of an eligible borrower's loan
9 application, the lending institution shall submit the loan
10 application and approval to the State Treasurer.
11 (5) The State Treasurer shall review the application to
12 verify the borrower's eligibility.
13 (6) Upon determination of borrower eligibility, the
14 State Treasurer shall deposit, with the lending institution
15 in a savings account in the name of the Commonwealth, funds
16 sufficient to cover the amount of the loan requested.
17 (7) The lending institution shall credit the
18 Commonwealth's account with appropriate interest earnings at
19 appropriate periods in accordance with rates established by
20 the Board of Finance and Revenue.
21 (8) Funds loaned to an eligible borrower under this
22 program shall be charged an interest rate no higher than 3%
23 above the passbook savings account rate paid to the <--
24 Commonwealth on its passbook savings account RATE ESTABLISHED <--
25 PURSUANT TO PARAGRAPH (7).
26 (9) Under the terms of this act, lending institutions
27 which accept eligible borrowers shall allow borrowers to
28 borrow the entire amount of the loan at the outset or to
29 establish a line of credit with periodic withdrawals up to
30 the amount of the original loan.
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1 (10) Loans shall not exceed $75,000 and shall be placed
2 for a maximum of a six-year 15-YEAR period. <--
3 (11) At the conclusion of the period of the eligible
4 borrower's loan, the initial deposit, together with interest
5 earned, shall be returned to the State Treasurer.
6 Section 5. Liability.
7 The Commonwealth and the State Treasurer shall not be liable
8 to a lending institution in any manner for payment of the
9 principal or interest on the loan made to an eligible borrower.
10 Any delay in payments or default on the part of the eligible
11 borrower shall not in any manner affect the deposit agreement
12 between the lending institution and the State Treasurer.
13 Section 6. Effective date.
14 This act shall take effect in 60 days.
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