This bill amends Minnesota Statutes 2024, section 500.24, subdivision 2, to revise the nonprofit corporation exemption under the corporate farm law. Key modifications include the expanded definition of "exempt land," which now encompasses agricultural land leased by a nonprofit corporation to an eligible entity as of July 31, 2026. The bill also clarifies that land owned or leased by a corporation as of May 20, 1973, or by a trust as of the effective date of Laws 2000, chapter 477, is considered exempt. Additionally, it introduces new definitions and clarifications for various agricultural entities, emphasizing the importance of family ownership and control in farming operations.

Moreover, the bill defines "gifted land" and "repossessed land," detailing the conditions for acquiring agricultural land through gifts or legal processes related to debt collection. It mandates that "gifted land" received by certain nonprofit entities must be disposed of within ten years, while "repossessed land" must be sold within five years, with exceptions for leasing to family farm units and authorized entities. The bill also clarifies the definition of a "nonprofit corporation," introduces the term "current beneficiary," and defines "de minimis" in relation to agricultural land ownership. Notably, it specifies a deletion regarding the leasing of agricultural land, replacing it with a new stipulation about leasing less than 200 acres, and establishes an effective date of August 1, 2026, for the new provisions.

Statutes affected:
Introduction: 500.24