Code of Maine Rules › 01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY › 001 - AGRICULTURE - GENERAL › Chapter 32 - RULES FOR OPERATION OF AGRICULTURAL MARKETING LOAN FUND › Section 001-32-II - Definitions

Current through 2024-29, July 17, 2024
A.
Agricultural enterprise
.
				"Agricultural enterprise" means a person or business, located in Maine, engaged
				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 of to generate
				income. "Agricultural enterprise" shall also include 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.
B.
Borrower
:
				The term "borrower" shall mean the applicant and any related or affiliated
				individual or entity which shares assets, such as land, machinery and equipment
				or other property, with the applicant in connection with the applicant's
				agricultural enterprise.
C.
Direct Marketing
: "Direct marketing" means the marketing of
				agricultural products by farmers directly to consumers and restaurants. "Direct
				marketing" includes, but is not limited to: farmers' markets, farms selling
				produce picked by the consumer, roadside farm stands, farms selling shares of
				an anticipated harvest and catalog sales.
D.
Emerging
: The term "emerging"
				shall mean an industry which the Commissioner determines is new to the State at
				the time of application, or which, although not new to the State, has the
				potential, as determined by the Commissioner, to increase its production within
				the State by more than 30% over the 5 year period following application. The
				applicant shall provide, at the request of the Commissioner, information
				demonstrating that the applicant's industry is emerging.
E.
Fair Market Value
: The term
				"fair market value" shall mean the value of property as determined by a written
				appraisal, with a certificate signed by the appraiser, or by other method
				approved by the Commissioner.
F.
Industry
: The term "industry"
				shall mean any line of business involving agriculture, which the Commissioner
				determines uses the same raw material for its product. When applied to products
				derived from plants, it shall be determined by plant type, e.g., corn, potato,
				cranberry, blueberry, regardless of the form which the product takes. When
				applied to products derived from animals, it shall be determined by the aspect
				of the animal used to make the product, e.g., milk, meat, coat. The industry a
				particular agricultural enterprise is engaged in shall be determined by the
				project for which the loan is sought.
G.
New and Innovative
: The term
				"new and innovative," shall mean a method, process, machine or structure not
				previously developed, or if previously developed, not commonly utilized for the
				support of agricultural production and marketing in Maine .
H.
Prime Rate
: The term "Prime
				Rate" shall mean the highest prime rate as reported by the
Wall Street
				Journal
.
I.
Private
				Funds
: The term "private funds" shall mean equity in the form of cash
				and/or property of the applicant, including cash from loans subordinated to the
				AMLF loan secured by assets not related to the project, or the value of
				services to be contributed to the project by the applicant, as determined and
				to be approved in advance by the Department.
J.
Processing
: The term
				"processing" shall mean changing the form of an agricultural product through
				the application of labor or materials or both.
K.
Project
: The term "project"
				shall mean the use to which the loan or grant proceeds are to be put, as
				approved by the Commissioner.