An Act To Provide Financing Relief for Maine Dairy Farmers
Maine Legislature, Session 121, LD 1378
Committee: Agriculture, Conservation and Forestry
Sponsors: BRYANT, AUSTIN, CARR, JACOBSEN, SMITH, BROMLEY, YOUNGBLOOD
Amends: 10 MRSA §1023-J

Legislative Document 
No. 1378 
H.P.lOl3 
House of Representatives, March 18,2003 
An Act To Provide Financing Relief for Maine Dairy Farmers 
(EMERGENCY) 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
'7Y/~ 1I1.1llt2£~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative PlOTT I of Unity. (GOVERNOR'S BILL) 
Cosponsored by Senator BRYANT of Oxford and 
Representatives: AUSTIN of Gray, CARR of Lincoln, JACOBSEN of Waterboro, McKEE of 
Wayne, SMITH of Monmouth, Senators: BROMLEY of Cumberland, YOUNGBLOOD of 
Penobscot. 
Printed. on rCl.:ycleu papt"f 
Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the producer price of milk has dropped to 20-year 
lows; and 
Whereas, these prices jeopardize the viability of the Maine 
dairy industry; and 
Whereas, the 
Maine 
dairy 
industry is essential 
to 
the 
State's rural economy and communities 
and generates business 
activity and preserves open space; and 
Whereas, the stabilization of the dairy 
temporary 
price 
drops 
constitutes 
a 
public 
appropriate expenditure of state revenues; and 
industry during 
purpose 
and 
an 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1023-J, first" as repealed and replaced by PL 
2001, c. 471, Pt. A, §12, is amended to read: 
The Agricultural Marketing Loan Fund, referred to in this 
section as the "fund," is created. 
The fund must be deposited 
with and maintained by the Finance Authority of Maine. 
The fund 
must be administered by the Commissioner of Agriculture, Food and 
Rural 
Resources 
in 
accordance 
with 
Title 
7, 
chapter 
101, 
subchapter 
~-g 1-0. 
All money received by the Finance Authority 
of Maine from any source for the development and implementation 
of 
an 
improved agricultural marketing 
loan program 
must 
be 
credited to the fund. 
Any money credited to the fund from the 
issuance of bonds on behalf of the State for financing loans for 
agricultural enterprises may 
be used only for 
the 
following 
purposes: 
to provide assistance to agricultural enterprises in 
this 
State 
for 
the 
design, 
construction 
or 
improvement 
of 
commodity 
and 
storage 
buildings 
and 
packing 
and 
marketing 
facilities; 
for 
the purchase, 
construction or 
renovation of 
buildings, equipment, docks, wharves, piers or vessels used in 
connection with a 
commercial agricultural enterprise; for the 
purchase of land in connection with development of new cranberry 
acreage; for the purchase of land for irrigation reservoirs or to 
provide direct access to water for irrigation; for the purchase 
of 
land necessary 
for 
the 
start-up 
of 
a 
new 
agricultural 
enterprise; 
for 
the 
expansion 
of 
an 
existing 
agricultural 
enterprise when the land acquisition is necessary to comply with 
land use regulations; 
SF for the development of a business plan 
in accordance with the provisions of Title 7, section 436-A; or, 
if the commissioner so approves at the time of loan insurance 
commi tment. to pledge money in the fund as security for, and to 
apply money in the fund to, payment of principaL interest and 
other amounts due on any capital loans insured by the Finance 
Authority of Maine to an eligible dairy farmer. 
Repayment of 
these loans and interest on these loans must be credited to the 
fund and must be available for making additional loans for the 
same purposes, except that interest may be used for the purposes 
stated in Title 7, section 436. 
Interest earned on money in the 
fund and interest earned on loans made from the fund may be used 
to pay the administrative costs of processing loan applications, 
to the extent that these costs exceed the fee for administrative 
costs established by Title 7, section 435, subsection 4. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill allows money in the Agricultural Marketing Loan 
Fund to be used as security for, and to be applied to, payment of 
principal, interest and other amounts due on loans insured by the 
Finance Authority of Maine to eligible dairy farmers.