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S.F. No. 841 - Shrimp Production Incentive Payments
Author: Senator Bill Weber
Prepared By: Greg Knopff, Senate Analyst (651/296-9399)
Date: February 16, 2017


SF 841 creates a production incentive program for new shrimp production capacity located in Minnesota.  To be eligible, the production facility must produce at least 25,000 pounds of shrimp per quarter, not begin production before July 1, 2019, and begin production by July 1, 2025.  At least 80 percent of the feed must be purchased in Minnesota, unless the shrimp production facility is located within 50 miles of the state border.  If the facility is within 50 miles of the state border, the feed may be purchased from within a 100-mile radius.

Eligible shrimp producers will receive a payment of 69 cents per pound of shrimp produced in Minnesota up to a maximum of 2 million pounds of shrimp produced in a quarter for any single producer.  Shrimp producers are eligible for the production payment for the first five years of production.  The maximum payment for all eligible shrimp production in Minnesota in a single quarter is $1.25 million.  If the total amount of eligible production exceeds this amount, the payments will be awarded on a pro rata basis.

Shrimp producers will receive the production payments on a quarterly basis by submitting claim forms to the Commissioner of Agriculture.  Each claim must be examined by a certified public accounting firm with a valid permit to practice in Minnesota.

A capped, open appropriation is provided to the Commissioner of Agriculture to make the payments under the bill. The maximum amount appropriated is $5 million per fiscal year.


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