HCS HB 346 -- AGRICULTURAL AND SMALL BUSINESS DEVELOPMENT
AUTHORITY

SPONSOR:  Munzlinger

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Agri-Business by a vote of 8 to 0.

Currently, agricultural tax credits are not to exceed $6 million
in the aggregate in any fiscal year.  This substitute increases
the maximum amount to $12 million.

The Missouri Agricultural and Small Business Development
Authority is allowed to issue up to $1 million in agricultural
product utilization tax credits in any fiscal year to individuals
contributing cash funds to the authority.  The funds are to be
used for financial or technical assistance to rural agricultural
business concepts approved by the authority.

Subject to appropriations, the authority must pay the first year
of charged interest payments on all linked deposit loans used for
the acquisition of dairy cows.  The authority is authorized to
charge a service fee, not to exceed $50, to defray the
administrative costs of processing a loan.

The authority is required to develop and implement dairy business
planning grants.  The aggregate amount of the grants will not
exceed $50,000; and no single grant can exceed $5,000.  An
application fee may be charged, not to exceed $50 per grant
application, to defray the administrative costs of administering
the grant.

The applicant's dairy operation must be located in Missouri and
at least 51% owned by Missouri residents.  The grant proceeds
must be used solely to contract with a dairy business planning
professional approved by the authority.  The authority is
required to establish rules on eligibility and award criteria
including improved profitability, modernization, and expansion of
the dairy operation.  The experience, education, and relevant
dairy experience of both the grant applicant and the dairy
business planning professional are required to be part of the
respective selection criteria.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 to
$6,430,699 in FY 2008, $0 to $6,520,544 in FY 2009, and $0 to
$6,534,661 in FY 2010.  No impact on Other State Funds in FY
2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that currently 16 proposed
value-added, agri-business projects are being held up due to tax
credit unavailability.  The program has been very successful and
contributes greatly to the growth of agriculture in Missouri.
Missouri dairies are unable to supply the needs of the state.  We
need to stimulate dairy expansion and attract new dairy
operations to the state.

Testifying for the bill were Representative Munzlinger;
Department of Agriculture; Missouri Corn Growers Association;
Missouri Farm Bureau; Missouri Agriculture Industries Council;
and Missouri Soybean Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am