HS HCS HB 1811 -- FARMLAND PROTECTION ACT (Kreider)

This substitute permits family farms, family farm corporations,
and eligible new generation cooperatives formed in Missouri to
participate in the Neighborhood Assistance Act.

Organizations which perform community service or economic
development activities are permitted to qualify as neighborhood
organizations under the act by contributing to help finance a
building or structure and any equipment necessary therein which
is located within the state and used to sell or add value to
agricultural food products grown or produced in Missouri.  Under
the act, business firms making contributions to neighborhood
organizations receive tax credits.  The total amount of tax
credits allowed is $2.5 million per fiscal year for fiscal years
2002 to 2006.

The agricultural marketing program currently known as
AgriMissouri is renamed "Producers Choice."

The Department of Agriculture, for the use of the Marketing
Division, is to develop and implement rules and regulations by
product category for all Missouri agricultural products.

The substitute also creates the Missouri Agricultural Products
Marketing Development Fund, for the use of the Marketing
Division of the Missouri Department of Agriculture.  Subject to
appropriation, $1.3 million in 2002, $1 million in 2003, and
$750,000 in 2004 to 2006 from the General Revenue Fund and fees
collected pursuant to participation in the Producers Choice
trademark marketing program are to be placed in the fund.

The Citizens' Advisory Commission for Marketing Missouri
Agricultural Products is created to advise the Marketing
Division of the Missouri Department of Agriculture on marketing
activities associated with the Producers Choice trademark.  The
commission's composition, duties, and members' terms are
specified.

The commission is to establish a fee structure for sellers of
Missouri agricultural products electing to use the Producers
Choice trademark.  All sellers having gross annual sales greater
than $2 million per fiscal year of Missouri agricultural
products are to remit a trademark fee of 0.5% of the aggregate
amount of all of the seller's wholesale sales of products
carrying the Producers Choice trademark.  All sellers having
gross annual sales less than or equal to $2 million per fiscal
year of Missouri agricultural products, after 3 years of selling
Missouri agricultural products carrying the Producers Choice
trademark are to remit a trademark fee of 0.5% of the aggregate
amount of all of the seller's wholesale sales of products
carrying the Producers Choice trademark.

The substitute allows the commission to create 2 additional
trademark labels to be associated with Missouri agricultural
products.  The trademark labels are for certified organic
products and certified family farm produced products.

The Marketing Division of the Missouri Department of Agriculture
is to create an Internet web site for the purpose of fostering
the marketing of Missouri agricultural products.  The web site
is to allow consumers to place orders for Missouri agricultural
products over the Internet and is to enable small companies
which process Missouri agricultural products to pool products
with other small companies.

The substitute makes farmers who have formed a group for the
purpose of selling products derived from their farming
activities at a common structure, when at least 50% of the cost
of such structure is paid by the group, eligible for tax credits
under the Neighborhood Assistance Act.

The Department of Agriculture is to develop standards and
labeling for organic farming.

The substitute enacts the Farmland Protection Act.  The purpose
of the act is to protect agricultural, horticultural, and
forestry land; promote continued economic viability; promote
quality of life; and protect farmlands from negative impacts.
The provisions of this act apply to tracts of real property
comprising 10 or more contiguous acres used as agricultural or
single family residential property or both and not located in a
platted subdivision.  The act requires the state or any
political subdivision to hold sewer and water assessments in
abeyance until improvements on property covered by the act are
connected to the sewer or water system.  Property subject to the
provisions of the act may not be taken by eminent domain unless,
in addition to approval by the county commission, a public
hearing is held on the proposed taking.

FISCAL NOTE:  Estimated Net Cost to the General Revenue Fund of
$287,214 in FY 2001, $1,554,898 in FY 2002, and $1,261,212 in FY
2003.  Estimated Net Effect to the Missouri Agricultural
Products Marketing Development Fund of $0 in FY 2001, FY 2002,
and FY 2003.

HCS HB 1811 -- FARMLAND PROTECTION ACT

SPONSOR:  Leake (Kreider)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 17 to 0.

This substitute is to be known as the Farmland Protection Act.

The purpose of the act is to protect agricultural,
horticultural, and forestry land; promote continued economic
viability; promote quality of life; and protect farmlands from
negative impacts.

The provisions of this act apply to tracts of real property
comprised of 10 or more contiguous acres, used as agricultural
or single family residential property or both, and not located
in a platted subdivision.

The substitute requires the state or any political subdivision
to hold sewer and water assessments in abeyance, until
improvements on property covered by the act are connected to the
sewer or water system.

Property subject to the provisions of the act may not be taken
by eminent domain unless, in addition to approval by the county
commission, a majority of the total number of authorized members
of the soil and water conservation board vote to support such
taking by eminent domain.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill provides an extra
public forum and vote prior to the taking of farmland by eminent
domain.  Property owners are protected from fees for
improvements which they receive no benefit from.  Urban
residents enjoy green spaces and this act would protect those
spaces.

Testifying for the bill were Representatives Kreider, Ridgeway,
and Myers; Jeffrey Douglas, Platte County Soil and Water
District; Missouri Association of Soil and Water Districts; and
Missouri Farm Bureau.

OPPONENTS:  The person who opposed the bill said that his
clients had concerns with the bill.

Testifying against the bill was Missouri Home Builders
Association.

Roland Tackett, Legislative Analyst

HB 1811 -- Farmland Preservation Enabling Act

Co-Sponsors:  Kreider, Ridgeway, Crump, Reinhart, Legan, Klindt,
Myers

This bill allows any county to establish by ordinance a farmland
preservation program.

In order for farmland to qualify, it must be real property that:

(1)  Is certified by the Natural Resources Conservation Service
of the United States Department of Agriculture as being a farm
on which 2/3 of the land is best suited for farming activities,
soil quality is appropriate for crops common to the county in
which the farm is located, and at least 2/3 of the farmland has
been in production for the previous 5 years;

(2)  Is managed in accordance with the Natural Resources
Conservation Service defined erosion control practices; and

(3)  Is subject to a conservation agreement between the soil and
water conservation district board and the owner of the land that
prohibits nonfarm use for 10 years, except for creation of not
more than 3 lots that meet applicable county zoning.

By written notice to the county, the landowner may revoke the
farmland preservation agreement.  If the landowner breaches the
terms of the farmland preservation agreement, any tax is to be
repaid with interest and penalties.

Voluntary farmland preservation districts are to consist of the
number of contiguous acres of qualifying farmland or the number
of qualifying farms deemed appropriate by the county soil and
water conservation district board.

The purpose of a voluntary farmland preservation district is to
protect agricultural, horticultural, and forestry land; promote
continued economic viability; promote quality of life; and
protect farmlands which are properly managed from negative
impacts.

The county assessor in the county in which the farmland
preservation district exists is to grade land in the program at
one grade lower than ordinarily assessed, as long as the land
retains qualifying status.

The state or any political subdivision is to hold sewer or water
assessments in abeyance, until improvements on such property are
connected to the sewer or water system.

The county soil and water conservation board is to submit to the
Director of the Department of Agriculture, at least once a year,
a written report on the status and activities of the county
farmland preservation district.

Property in the farmland preservation district may not be taken
by eminent domain unless 2/3 of the soil and water conservation
district board vote to support the taking.