An Act To Enhance the Agricultural Marketing Loan Fund by Establishing a Variable Interest Rate for Loans and To Allow Participants in the Maine Farms for the Future Program To Borrow at That Rate
Maine Legislature, Session 130, LD 0219
Committee Amendment CA_A_H890 (House)
Amends: 7 MRSA §306-A, 7 MRSA §307, 7 MRSA §308, 7 MRSA §434, 7 MRSA §435, 7 MRSA §436, 10 MRSA §1023-J

COMMITTEE AMENDMENT" A" to H.P. 154, L.D. 219, "An Act To Enhance the 
Agricultural Marketing Loan Fund by Establishing a Variable Interest Rate for Loans and 
To Allow Participants in the Maine Farms for the Future Program To Borrow at That Rate" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Improve the Agricultural Marketing Loan Fund and Agricultural 
Development Grant' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 7 MRSA §306-A, as amended by PL 2013, c. 64, §§1 and 2, is further 
amended to read: 
§306-A. Agricultural Development Fund 
1. Agricultural Development Fund. The commissioner shall establish IH'l agricul-tural 
de•telopmeH-t fuad the Agricultural Development Fund, referred to in this section as "the 
fund," to accelerate aew market development, adoption of ad•,zamageous techH:ologies 
technology and promotion of state agricultural products by state producers. No later than 
July 31st each fiscal year, the State Controller shall transfer $550,000 from General Fund 
undedicated revenue to the fund. 
2. Fund operation. The commissioner shall utilize the a~iculrural de:r,zelopmeH-t fund 
to: 
A. Provide grants to iadividuals, firms or org1H1i2:atioas public agencies. and private 
for-profit entities and nonprofit entities based in the State to conduct market research 
or to undertake market promotion activities for the purpose of expanding existing 
markets and developing new markets for state agricultural products; aa4 
B. Test and demonstrate new technologies related to the production, storage and 
processing of state agricultural commodities. products; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'A "to H.P. 154, L.D. 219 
C. Provide technical assistance grants for conducting market research, feasibility 
studies, engineering studies, construction planning, land use planning, facility design 
and configuration planning and for funding the purchase of on-farm equipment and 
other technology purchases that directly support the growth of agricultural enterprises 
as defined in section 434. 
The commissioner may disburse grant money awarded to an applicant during any of the 3 
fiscal years following award of the grant to an applicant. 
3. Rulemaldng. The commissioner shall establish, by rule, in a manner consistent 
with Title 5, chapter 375, subchapter 2-A criteria for the allocation of grant money, 
application requirements consistent with the provisions of this section, a schedule for 
accepting and reviewing applications, reporting requirements on grant expenditures and 
project results and any other administrative requirements necessary for the efficient 
implementation of this program. Rules adopted pursuant to this subsection are majef 
substantive routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. The 
commissioner is guided by the following criteria: 
A. 
Applications may be submitted by indiviEl-uals, firms Of organizations public 
agencies and private for-profit entities and nonprofit entities based in the State in 
response to a request for proposals for competitive grants. The commissioner may also 
contract directly with indiviEl-uals, firms or organizations public agencies and private 
for-profit entities and nonprofit entities for a special project under section 307; 
B. A percentage of the total cost of any project must be funded by the applicant or 
applicants and a percentage of the total cost must be funded from nonpublic sources. 
These percentages must be established by rule. A single grant may not exceed 50% of 
the total funds available to be granted in a given year; 
C. Information relative to market research or development activities provided to the 
commissioner prior to formal application, included in grant applications or provided to 
the commissioner to fulfill reporting requirements is confidential information and may 
not be publicly disclosed by the commissioner as long as: 
(1) The person to whom the information belongs or pertains has requested that 
certain information be designated as confidential; and 
(2) The commissioner has determined that the information gives the person 
making the request opportunity to obtain business or competitive advantage over 
another person who does not have access to the information or will result in loss 
of business or other significant detriment to the person making the request if access 
is provided to others; and 
D. When possible, the commissioner shall award grants to applicants representing 
diverse agricultural enterprises and geographic areas of the State. 
4. 
Advisory committee. 
The commissioner shall establish the Agricultural 
Development Committee to evaluate market a-ad proEl-uction development competitive 
grant applications and review project results. 
Sec. 2. 7 MRSA §307, as amended by PL 2013, c. 64, §3, is further amended to 
read: 
§307. Special projects 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to H.P. 154, L.D. 219 
The commissioner may contract directly with the University of Maine System or 
qualified individuals, firms or organizations public agencies and private for-profit entities 
and nonprofit entities based in the State for market research, for testing new technologies 
and for research on technical problems related to the production, marketing, storage and 
processing of agricultural eommodities products. 
Sec. 3. 7 MRSA §308, as amended by PL 1999, c. 72, §6, is repealed. 
Sec. 4. 7 MRSA §434, sub-§1, as amended by PL 2001, c. 152, §1, is further 
amended to read: 
1. Agricultural enterprise. "Agricultural enterprise" means a person or business 
located in this State and engaged or beginning to engage in the commercial growing or 
harvesting of plants; raising of animals; growing or obtaining plant or animal by-products; 
aquaculture, as defined in Title 12, section 6001, subsection 1; or further processing, 
storing, packaging or marketing a raw product derived from plants, animals, plant or animal 
by-products or aquaculture, as defined in Title 12, section 6001, subsection 1, with the 
intent that the product be sold or otherwise disposed ofto generate income. "Agricultural 
enterprise" includes a business or activity that attracts visitors to a farm for the purpose of 
supplementing income from the primary crop or livestock operation. 
"Agricultural 
enterprise" does not include a business engaged primarily in the growing, harvesting or 
further processing of forest species of trees for the purpose of producing pulp or other 
materials used in the paper manufacturing or wood manufacturing process. 
Sec. 5. 7 MRSA §435, sub-§2, 1A, as amended by PL 2003, c. 168, §1, is further 
amended to read: 
A. An agricultural marketing loan for any project under this subchapter, the total cost 
of which exceeds $100,000 $200,000, may not exceed~ 90% of the project cost. A 
loan from the fund may not be provided for such a project unless the applicant 
demonstrates a commitment of private funds of at least 5% of the total cost of the 
project; except that, in order to encourage the undertaking of cooperative projects by 2 
or more agricultural enterprises, an agricultural marketing loan may not be provided 
unless the cooperating agricultural enterprises as a group demonstrate a commitment 
of private funds of at least 5% of the total cost of the project. 
Sec. 6. 7 MRSA §435, sub-§2, ~' as amended by PL 2003, c. 168, §1, is fu1ther 
amended to read: 
B. An agricultural marketing loan for any project under this subchapter, the total cost 
of which is $100,000 $200,000 or less, may not exceed 90% of the total cost of the 
project. 
Sec. 7. 7 MRSA §435, sub-§3, as amended by PL 2007, c. 660, § 12, is repealed. 
Sec. 8. 7 MRSA §435, sub-§3-A, as enacted by PL 2007, c. 660, §13, is amended 
to read: 
3-A. Loans for participants in the Maine Farms for the Future Program. The 
interest rate for loans for capital improvements identified in a business plan developed 
under section 318 for a farm determined eligible under section 319 is the federal prime rate 
on the date of loan commitment but may not be greater than 2% per year. 
Sec. 9. 7 MRSA §435, sub-§3-B is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'A "to H.P. 154, L.D. 219 
3-B. Interest rate. Except as provided in subsection 3-A, the interest rate for loans 
under this section is the federal prime rate on the date of loan commitment but may not be 
greater than 5%. Loans current on the effective date of this subsection may be refinanced 
at the bonower' s request to an interest rate of the federal prime rate but not greater than 
5%. 
Sec. 10. 7 MRSA §436, as amended by PL 2007, c. 660, §15, is further amended to 
read: 
§436. Grants for technical assistance and research 
The commissioner may use all or a portion of the accrued interest in the cash balance 
of the Agricultural Marketing Loan Fund and all or a portion ofloan repaymeats for grants 
for technical assistance and for grants from the agriookural developmeat graat program 
Agricultural Development Fund in chapter 10. The eomm:issioner may ~q,end graat 
dollars designated to an af>plicai'lt m one fiscal year duri-B:g Miy of the 3 fiscal years 
follov,ring designation. 
Sec. 11. 10 MRSA §1023-J, first 1, as amended by PL 2017, c. 475, Pt. A, §12, is 
further 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, Conservation 
and Forestry in accordance with Title 7, chapter 101, subchapter 1-D. 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, purchase, 
construction, renovation or improvement of commodity and storage buildings and packing 
and marketing faeilities equipment essential to the agricultural entemrise; 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 cranbeny acreage; for the purchase of land for 
irrigation reservoirs or to provide direct access to water for inigation or to fund the 
development of new or existing sustainable water sources; for the purchase of land 
necessary for the start-up of a new agricultural enterprise; for the purchase of land 
necessary for the expansion of an existing agricultural enterprise when the land aequisition 
is neeessary to eomply with land use rogalatioas; for the development of a business plan 
for improvements to pastureland, including seeding and actions to promote rotational 
grazing; for the design or implementation of improvements to infrastructure, equipment 
and natural resources to enhance a commercial agricultural entemrise's climate adaptation 
or mitigation capacity; for refinancing existing loans used to finance eligible uses as 
defined in this section; or, if the commissioner so approves at the time of loan insurance 
commitment, 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 term 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 may be used for the purposes stated 
in this section or Title 7, seetion 436. Interest earned on money in the fund and interest 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 154, L.D. 219 
earned on loans made from the fund may be used to pay the administrative costs of 
processing loan applications and servicing and administering the fund and loans ana grants 
maae from the funa srnee the ineeption of the a-griealmral marketing loan program, to the 
~ .. tent that these eosts e~weea the fee for admiHistrath,,e eosts established by Title 7, seetion 
435, sabseetion 4. 
Sec. 12. Transfer balance of interest in the Agricultural Marketing Loan 
Fund. Notwithstanding any provision of law to the contrary, no later than September 1, 
2022 the Finance Authority of Maine shall transfer the balance of realized interest in the 
Agricultural Marketing Loan Fund, as established under the Maine Revised Statutes, Title 
10, section 1023-J, and any previously awarded agricultural development grant funds that 
have not been paid to grantees to the Agricultural Development Fund, as established under 
Title 7, section 306~A, through a transfer to the Agricultural Development Fund, Other 
Special Revenue Funds account. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF 
Bureau of Agriculture 0393 
Initiative: Provides allocations for grants to public agencies, private for-profit entities and 
nonprofit entities based in the State to conduct market research or to undertake market 
promotion activities for the purpose of expanding existing markets and developing new 
markets for state agricultural products; to test and demonstrate new technologies related to 
the production, storage and processing of state agricultural products; and to provide 
technical assistance grants for conducting market research, feasibility studies, engineering 
studies, construction planning, land use planning, facility design and configuration 
planning and funding the purchase of on-farm equipment and other technology purchases 
that directly support the growth of agricultural enterprises. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2021-22 
$0 
$0 
2022-23 
$700,000 
$700,000 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment, which replaces the bill, separates the Agricultural Development Fund 
from the Agricultural Marketing Loan Fund. The amendment requires the State Controller 
to transfer $550,000 from the General Fund undedicated revenue to the Agricultural 
Development Fund annually. The amendment also requires the Finance Authority of 
Maine to transfer the balance of the realized interest in the Agricultural Marketing Loan 
Fund and any previously awarded agricultural development grant funds that have not been 
paid to grantees to the Agricultural Development Fund. The amendment requires the 
Commissioner of Agriculture, Conservation and Forestry to use the Agricultural 
Development Fund to provide technical assistance grants for conducting market research, 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to H.P. 154, L.D. 219 
feasibility studies, engineering studies, construction planning, land use planning, facility 
design and configuration planning and for funding the purchase of on-farm equipment and 
other technology purchases that directly support the growth of agricultural enterprises. 
Under current law, an agricultural marketing loan for a project the total cost of which 
exceeds $100,000 may not exceed 75% of the project cost. The amendment provides that 
an agricultural marketing loan for a project the total cost of which exceeds $200,000 may 
not exceed 90% of the project cost. 
The amendment changes the interest rate for 
agricultural marketing loans from 5% per year to the federal prime rate on the date ofloan 
commitment but not greater than 5%. The amendment provides that the agricultural 
marketing loan funds may be used to fund the development of new or existing sustainable 
water resources; for the design and implementation of improvements to infrastructure, 
equipment and natural resources to enhance a commercial agricultural enterprise's climate 
adaptation or mitigation capacity; and for refinancing existing loans used to finance eligible 
uses. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/18/22 ;'!;Pae 
LD219 
LR 75(02) 
An Act To Enhance the Agricultural Marketing Loan Fund by Establishing a Variable Interest Rate 
for Loans and To Allow Participants in the Maine Farms for the Future Program To Borrow at That 
Rate 
Fiscal Note for Bill as Amended by Committee Amendment 'A' { 
H,,,.,...-J ?o) 
Committee: Agriculture, Conservation and Forestry 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
Other Special Revenue Funds 
~ransfers 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2021-22 
$0 
$0 
$0 
$0 
FY 2022-23 
$550,000 
$700,000 
($550,000) 
$550,000 
Projections 
FY 2023-24 
$550,000 
$550,000 
($550,000) 
$550,000 
Projections 
FY2024-25 
$550,000 
$550,000 
($550,000) 
$550,000 
This bill changes the funding structure and eligibility criteria for grants made through the Agricultural Development 
Fund administered by the Department of Agriculture, Conservation and Forestry (ACF). It also changes the eligibility 
criteria, loan limits, and interest rates on loans made from the Agricultural Marketing Loan Fund within the Finance 
Authority of Maine (FAME) but a&ninistered by ACF. 
This bill requires the State Controller to make annual transfers of $550,000 from General Fund undedicated revenue to 
the Agricultural Development Fund within ACF and includes ongoing allocations to ACF of that amount beginning in 
fiscal year 2022-23 to allow expenditure of the funds. The bill also directs FAME to transfer the balance of interest in 
the Agricultural Marketing Loan Fund and any previously awarded agricultural development grant funds that have not 
been paid to grantees to the Agricultural Development Fund. The amount of these transfers will not be known until the 
transfer is made, but the bill includes a one-time allocation of $150,000 in fiscal year 2022-23 to allow expenditure of 
that amount. 
Under current law, an agricultural marketing loan that exceeds $100,000 may not exceed 75% of the total project cost 
and a loan of $100,000 or less may not exceed 90% of the total project cost. Under this bill the 7 5% cap is removed 
and all loans are limited to 90% of the total project cost. The bill also changes the interest rate for agricultural 
marketing loans from 5% per year to the federal prime rate on the date ofloan cormnitment up to a maximum of 5%. 
This change may reduce interest received on loans and credited to the fund for future use. The reduction in interest 
earnings will depend on the number of loans issued at an interest rate lower than the current 5% rate. 
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