Soil and water resource management program
Under current law, DATCP administers a soil and water resource management
program. The program provides funds to counties which may use the funds to
provide grants for land and water resource management projects and for the
construction of animal waste management systems. This bill prohibits counties from
providing grants of more than $50,000 under the soil and water resource
management program.
Wisconsin Consumer Act coverage and documentation of agricultural credit
transactions
Under current law, a transaction in which a consumer is granted credit in an
amount of $25,000 or less and which is entered into for personal, family, or household
purposes (consumer credit transaction) is generally subject to the Wisconsin
Consumer Act (consumer act). The consumer act provides obligations, remedies, and
penalties that current law generally does not require for other transactions. With
certain limited exceptions, the consumer act currently does not apply to a transaction
that is entered into primarily for an agricultural purpose.
This bill expands the coverage of the consumer act to generally include any
transaction which is entered into for agricultural purposes and in which a consumer
is granted credit in an amount of $25,000 or less. The bill also creates provisions that
apply specifically to certain transactions that are entered into for agricultural
purposes and that relate to the calculation of unearned finance charges that must
be rebated upon prepayment of the transaction; charges for taking and holding
collateral and preparing collateral for sale; limits on security interests granted under
the transaction; permissible amounts of credit life insurance and insurance against
loss or damage to collateral or leased goods; the determination of whether a customer
is in default; repossession of certain farm products that are used as collateral; the
customer's right to redeem after default; and prohibiting any part of the transaction
from requiring the consumer to pay attorney fees.
Under this bill, certain transactions that are entered into for agricultural
purposes continue to be excluded from provisions of the consumer act relating to
methods of calculating finance charges; limits on delinquency charges; required
notices regarding preservation of collateral; limits on a customer's liability upon
expiration of a consumer lease; determination of security interests in consolidated
transactions; the right to cancel certain transactions that are entered into following
mail, telephone, or other specified solicitations; and repossession of collateral.
This bill also requires every document that is signed by a person and that
evidences the person's obligation to pay under an agricultural credit transaction to
be executed in duplicate original copies. The bill requires the person that extends
the agricultural credit to provide one of the duplicate original copies to the person
that obtains the credit.
Agricultural grants, education, research, and promotion
Under current law, DATCP makes agricultural diversification grants to fund
projects directed toward new or alternative technologies and practices that will
stimulate agricultural development and economic activity. This bill increases the
funding for agricultural diversification grants. This bill also requires DATCP to
conduct education and outreach to promote the use of managed grazing, organic
dairying, and other organic agricultural production practices and to make grants to
help farmers adopt these practices.
Under current law, the department of commerce and the rural economic
development board administer a program to provide grants for starting, expanding,
or modernizing a dairy farm or other agricultural business. This bill requires the
rural economic development board to award grants for starting, expanding, or
modernizing dairy farms in such a manner that the average herd size of the
recipients of the grants does not exceed the average herd size of dairy farms
operating in this state. This bill also expands the rural economic development
program by authorizing the rural economic development board to award loans to
individuals for farm operating costs and for the costs of starting agricultural
businesses.
This bill establishes a sustainable agricultural research grant program to be
administered by the center for integrated agriculture systems of the University of
Wisconsin System and provides funding for the center to increase enrollment in short
courses for beginning dairy farmers and beginning market gardeners and for
research on effective strategies for beginning farmers. The bill provides funding for
the center for dairy profitability of the University of Wisconsin System for research
on low-capital strategies for improving the profitability of moderate scale dairy
farms. The bill also provides funding to the technical college system board for
improving and expanding programs for beginning farmers.
Various provisions in current law require DATCP to promote the agricultural
products of this state. This bill requires DATCP to administer, and provides funding
for, a Buy Wisconsin market development program to promote this state's
farm-raised food products and to assist state agencies and local governmental units
to purchase products directly from Wisconsin producers, producer organizations,
and speciality food companies.
This bill requires the Program on Agricultural Technology Studies of the
University of Wisconsin-Madison to conduct a study of the degree of concentration
in the dairy and livestock industries and of the social and economic impacts of that
concentration on consumers, small farms, and small communities. The bill also
requires the department of justice to determine what efforts should be taken to deal
with antitrust and unfair trade practices in agriculture.
WHEDA loan guarantee programs
The Wisconsin housing and economic development authority (WHEDA)
administers a number of loan guarantee programs under which WHEDA guarantees
repayment of a percentage of the outstanding principal amounts of loans made by
private lenders to qualified borrowers for various business and agricultural
purposes. WHEDA enters into guarantee agreements, addressing such issues as
default procedures and procedures for determining the percentage of loan principal
that WHEDA will guarantee, with private lenders wishing to participate in the loan
guarantee programs. WHEDA is authorized to charge fees for providing financial
assistance under the loan guarantee programs.
This bill provides that, in every guarantee agreement, the private lender must
agree to use loan servicing and forbearance policies to the fullest extent allowed
under state and federal law before initiating proceedings to foreclose on any security
interest obtained by the private lender to secure repayment of a guaranteed loan.
The bill also prohibits WHEDA from charging an application fee to a farmer applying
for a loan guarantee under the agricultural production loan guarantee program,
under which WHEDA guarantees loans made to farmers to finance the production
of agricultural commodities.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB445, s. 2
1Section
2. 20.115 (4) (cm) of the statutes is created to read:
SB445,7,32
20.115
(4) (cm)
Organic agricultural production. The amounts in the schedule
3for organic agricultural production education, outreach, and grants under s. 93.45.
SB445, s. 3
4Section
3. 20.115 (7) (cm) of the statutes is created to read:
SB445,7,65
20.115
(7) (cm)
Nutrient management grants. The amounts in the schedule for
6nutrient management grants under s. 92.22.
SB445, s. 4
7Section
4. 20.115 (7) (he) of the statutes is created to read:
SB445,7,98
20.115
(7) (he)
Agricultural nutrient management. All moneys received under
9s. 92.05 (3) (k), for activities related to agricultural nutrient management.
SB445, s. 5
10Section
5. 20.285 (1) (eb) of the statutes is created to read:
SB445,7,1211
20.285
(1) (eb)
Sustainable agriculture research grants. The amounts in the
12schedule for sustainable agriculture research grants under s. 36.25 (16).
SB445, s. 6
13Section
6. 20.370 (4) (ai) of the statutes is created to read:
SB445,7,1614
20.370
(4) (ai)
Water resources — animal feeding operations. From the general
15fund, all moneys received under s. 283.38 for permitting and monitoring compliance
16of concentrated animal feeding operations.
SB445, s. 7
17Section
7. 36.25 (16) of the statutes is created to read:
SB445,8,418
36.25
(16) Sustainable agriculture research grants. The board shall
19administer a sustainable agriculture research grant program through the center for
1integrated agriculture systems to make grants for applied research and on-farm
2demonstration projects concerning managed grazing, organic agricultural
3production, other environmentally and socially responsible agricultural production,
4and related enterprises.
SB445, s. 8
5Section
8. 92.03 (5m) of the statutes is created to read:
SB445,8,76
92.03
(5m) "Large animal feeding operation" has the meaning given in s. NR
7243.04 (13), Wis. Adm. Code.
SB445, s. 9
8Section
9. 92.05 (3) (k) of the statutes is amended to read:
SB445,8,179
92.05
(3) (k)
Nutrient management rules. The department shall promulgate
10rules to improve agricultural nutrient management in this state. The rules shall be
11consistent with rules promulgated under s. 281.16 (3) and shall include incentives,
12educational and outreach provisions
, and compliance requirements.
In the rules
13promulgated under this paragraph, the department shall provide for a nutrient
14management certification program, shall require a person who prepares a nutrient
15management plan to be certified by the department, and shall authorize farmers who
16choose to prepare their own nutrient management plans to become certified. The
17department may impose fees for nutrient management planning certification.
SB445, s. 10
18Section
10. 92.07 (2) of the statutes is renumbered 92.07 (2) (a) (intro.) and
19amended to read:
SB445,9,320
92.07
(2) (a) (intro.) Each land conservation committee may develop and adopt
21standards and specifications for management practices to control erosion,
22sedimentation
, and nonpoint source water pollution. The standards and
23specifications for
the following agricultural facilities and practices
that are
24constructed or begun on or after October 14, 1997, and, if cost-sharing is available
25to the owner or operator under s. 92.14 or 281.65 or from any other source, for
1agricultural facilities and practices that are constructed or begun before that date 2shall be consistent with the performance standards, prohibitions, conservation
3practices
, and technical standards under s. 281.16 (3)
.:
SB445,9,5
4(b) The land conservation committee shall use the rules promulgated under s.
5281.16 (3) (e) to determine whether cost-sharing is available
under par. (a) 3.
SB445, s. 11
6Section
11. 92.07 (2) (a) 1. to 3. of the statutes are created to read:
SB445,9,77
92.07
(2) (a) 1. Large animal feeding operations.
SB445,9,98
2. Agricultural facilities and practices that are constructed or begun on or after
9October 14, 1997.
SB445,9,1210
3. Agricultural facilities and practices, other than large animal feeding
11operations, that are constructed or begun before October 14, 1997, if cost-sharing is
12available to the owner or operator under s. 92.14 or 281.65 or from any other source.
SB445, s. 12
13Section
12. 92.105 (1) of the statutes is renumbered 92.105 (1) (a) (intro.) and
14amended to read:
SB445,9,2115
92.105
(1) (a) (intro.) A land conservation committee shall establish soil and
16water conservation standards. The standards for
the following agricultural facilities
17and practices
that are constructed or begun on or after October 14, 1997, and, if
18cost-sharing is available to the farmer under s. 92.14 or 281.65 or from any other
19source, for agricultural facilities and practices that are constructed or begun before
20that date shall be consistent with the performance standards, prohibitions,
21conservation practices
, and technical standards under s. 281.16 (3)
. It:
SB445,9,23
22(b) A land conservation committee shall submit
these the standards
under par.
23(a) to the board for review.
SB445, s. 13
24Section
13. 92.105 (1) (a) 1. to 3. of the statutes are created to read:
SB445,9,2525
92.105
(1) (a) 1. Large animal feeding operations.
SB445,10,2
12. Agricultural facilities and practices that are constructed or begun on or after
2October 14, 1997.
SB445,10,53
3. Agricultural facilities and practices, other than large animal feeding
4operations, that are constructed or begun before October 14, 1997, if cost-sharing is
5available to the owner or operator under s. 92.14 or 281.65 or from any other source.
SB445, s. 14
6Section
14. 92.14 (6) (gm) of the statutes is amended to read:
SB445,10,117
92.14
(6) (gm) A county may not provide cost-sharing funds using funds
8provided under this section in an amount that exceeds 70% of the cost of a project,
9except in cases of economic hardship, as defined by the department by rule.
A county
10may not provide cost-sharing funds using funds provided under this section in an
11amount that exceeds $50,000 per project.
SB445, s. 15
12Section
15. 92.15 (4) of the statutes is amended to read:
SB445,10,1813
92.15
(4) A local governmental unit may not apply a regulation under sub. (2)
14or (3) to a livestock operation that exists on October 14, 1997,
and that is not a large
15animal feeding operation unless the local governmental unit determines, using the
16rules promulgated under s. 281.16 (3) (e), that cost-sharing is available to the owner
17or operator of the livestock operation under s. 92.14 or 281.65 or from any other
18source.
SB445, s. 16
19Section
16. 92.22 of the statutes is created to read:
SB445,10,24
2092.22 Nutrient management grants. (1) The department shall establish
21and administer a program to provide grants to pay a portion of the costs of developing
22and implementing agricultural nutrient management plans required under s. 92.05
23(3) (k) or ch. 283 or required by federal law. The department shall give priority to
24grants for agricultural operations that have never had a nutrient management plan.
SB445,10,25
25(2) The department shall promulgate rules for the program under this section.
SB445, s. 17
1Section
17. 93.07 (3m) of the statutes is created to read:
SB445,11,32
93.07
(3m) Buy Wisconsin program. To administer a market development
3program to do all of the following:
SB445,11,64
(a) Promote a Wisconsin identity for farm-raised food products through
5producer directories and other promotions for Wisconsin producers, producer
6organizations, and specialty food companies.
SB445,11,107
(b) Assist state agencies and school districts and other local governmental units
8to purchase products directly from Wisconsin producers, producer organizations,
9and specialty food companies in order to expand markets for farm products and
10improve the quality and freshness of food served.
SB445, s. 18
11Section
18. 93.45 of the statutes is created to read:
SB445,11,15
1293.45 Organic agricultural production.
(1) Education and outreach. The
13department shall conduct education and outreach to promote the use of managed
14grazing, organic dairying, and other organic agricultural production practices as
15profitable and environmentally sound practices.
SB445,11,18
16(2) Grants. The department shall make grants to pay a portion of the costs for
17farmers to adopt managed grazing, organic dairying, and other organic agricultural
18production practices.
SB445, s. 19
19Section
19. 93.46 (3) of the statutes is created to read:
SB445,11,2120
93.46
(3) The department shall annually report to the legislature under s.
2113.172 (2) concerning the results of each grant made under this section.
SB445, s. 20
22Section
20. 100.185 of the statutes is created to read:
SB445,11,24
23100.185 Documentation of agricultural credit transactions. (1) 24Definitions. In this section:
SB445,12,3
1(a) "Agricultural purpose" means a purpose related to the production, harvest,
2exhibition, marketing, transportation, processing, or manufacture of farm products
3by a person that cultivates, plants, propagates, or nurtures those farm products.
SB445,12,54
(b) "Credit" means the right to defer payment of debt, to incur debt, and defer
5its payment or to purchase goods, services, or interests in land on a time price basis.
SB445,12,96
(c) "Credit transaction" means a transaction under which real or personal
7property, services or money is acquired by a person, on credit, and under which the
8person is required to pay a charge for the credit or is required to pay his or her
9obligation in installments.
SB445,12,1110
(d) "Farm creditor" means a person that extends credit to another person that
11obtains the credit primarily for an agricultural purpose.
SB445,12,1512
(e) "Farm product" means an agricultural, horticultural, viticultural, dairy, or
13forest product; livestock; wildlife; poultry; bees; fish; shellfish; a product raised or
14produced on a farm; and any processed or manufactured product that is derived from
15any of these items.
SB445,12,23
16(2) Documentation required. A farm creditor shall ensure that each document
17that is signed by a person and that evidences the person's obligation to pay under a
18credit transaction that the person enters into primarily for an agricultural purpose
19is executed in duplicate original copies. Except as provided under sub. (3), the
20duplicate original copies shall consist of a signed copy and an identical carbon copy
21containing the carbon impression of all signatures on the signed copy. The farm
22creditor shall provide the person that receives the credit with one of the duplicate
23original copies.
SB445,13,3
1(3) Rules. The department may, by rule, authorize the production of duplicate
2original copies as required under sub. (2) by any method that is at least as effective
3at preventing fraud as the method specified under sub. (2).
SB445, s. 21
4Section
21. 234.92 of the statutes is renumbered 234.92 (1) and amended to
5read:
SB445,13,86
234.92
(1) The authority may establish premiums, fees
, or other charges for
7providing financial assistance under programs guaranteed by the Wisconsin
8development reserve fund.
SB445, s. 22
9Section
22. 234.92 (2) of the statutes is created to read:
SB445,13,1110
234.92
(2) Notwithstanding sub. (1), the authority may not charge a farmer
11applying for a loan guarantee under the program under s. 234.90 an application fee.
SB445, s. 23
12Section
23. 234.93 (2) (am) of the statutes is created to read:
SB445,13,1813
234.93
(2) (am) Under every guarantee agreement entered into under par. (a),
14the lender shall agree to use loan servicing and forbearance policies to the fullest
15extent required or permitted under state and federal law before initiating
16proceedings to foreclose on any security interest obtained by the lender to secure
17repayment of a guaranteed loan. The authority may determine, and the agreement
18may specify, applicable loan servicing and forbearance policies.
SB445, s. 24
19Section
24. 281.16 (3) (e) of the statutes is amended to read:
SB445,14,1220
281.16
(3) (e) An owner or operator of an agricultural facility or practice that
21is in existence before October 14, 1997,
and that is not a large animal feeding
22operation, as defined in s. NR 243.04 (13), Wis. Adm. Code, may not be required by
23this state or a municipality to comply with the performance standards, prohibitions,
24conservation practices
, or technical standards under this subsection unless
25cost-sharing is available, under s. 92.14 or 281.65 or from any other source, to the
1owner or operator. For the purposes of this paragraph, sub. (4) and ss. 92.07 (2),
292.105 (1), 92.15 (4)
, and 823.08 (3) (c) 2., the department of natural resources shall
3promulgate rules that specify criteria for determining whether cost-sharing is
4available under s. 281.65
, and the department of agriculture, trade and consumer
5protection shall promulgate rules that specify criteria for determining whether
6cost-sharing is available under s. 92.14 or from any other source. The rules may not
7allow a determination that cost-sharing is available to meet local regulations under
8s. 92.07 (2), 92.105 (1)
, or 92.15 that are consistent with or that exceed the
9performance standards, prohibitions, conservation practices
, or technical standards
10under this subsection unless the cost-sharing is at least 70% of the cost of compliance
11or is from 70% to 90% of the cost of compliance in cases of economic hardship, as
12defined in the rules.
SB445, s. 25
13Section
25. 281.16 (4) of the statutes is amended to read:
SB445,14,2214
281.16
(4) Application to animal feeding operations. If the department issues
15a notice of discharge under ch. 283 for an animal feeding operation, the performance
16standards, prohibitions, conservation practices
, and technical standards under sub.
17(3) apply to the animal feeding operation, except that if the animal feeding operation
18is in existence before October 14, 1997,
and is not a large animal feeding operation,
19as defined in s. NR 243.04 (13), Wis. Adm. Code, the performance standards,
20prohibitions, conservation practices
, and technical standards only apply if the
21department determines that cost-sharing is available to the owner or operator of the
22animal feeding operation under s. 92.14 or 281.65 or from any other source.
SB445, s. 26
23Section
26. 281.17 (11) of the statutes is created to read:
SB445,15,724
281.17
(11) No person may begin to operate an animal waste storage facility
25with a capacity greater than 3,000,000 gallons before the person provides to the
1department proof of financial responsibility ensuring the availability of funds to
2cover the reasonably anticipated costs of remedial action that would be required as
3the result of the most harmful discharge of animal waste from the animal waste
4storage facility that could possibly occur. A person may establish proof of financial
5responsibility required under this subsection by obtaining any of the following made
6payable to or established for the benefit of the department and approved by the
7department:
