(1) The Montana Agriculture Development Council ("council") was created in 1987 and transferred to the Department of Agriculture by 2-15-3015, MCA.

(2) The council consists of seven members appointed by the governor, including the director of the Department of Agriculture, the director of the Department of Commerce, and five members who are or have been actively engaged in agriculture.

(3) The council is allocated to the Department of Agriculture for administrative purposes only as prescribed in section 2-15-121, MCA.

(4) The department provides staff for the council to administer council activities.

(1) The Council adopts and incorporates by reference the Attorney General's Organizational and Procedural Rules ARM 1.3.201, 1.3.202, 1.3.211 through 1.3.224, and 1.3.226 through 1.3.233, effective August 15, 2008; and the Secretary of State's Organizational and Procedural Rules ARM 1.3.101, 1.3.102, 1.3.301, 1.3.302, 1.3.304, 1.3.305, 1.3.307 through 1.3.309, 1.3.311 through 1.3.313, effective August 1, 2008. A copy of these rules may be obtained from the staff of the Montana Agriculture Development Council, Montana Department of Agriculture, 303 N. Roberts, PO Box 200201, Helena, MT 59620-0201. Hearings on applications shall not be considered contested cases.

(1) The Council adopts and incorporates by reference the citizen participation rules of the Department of Agriculture as set forth in ARM 4.2.201 through 4.2.204. A copy of these rules may be obtained from the staff of the Montana Agriculture Development Council, Montana Department of Agriculture, 303 N Roberts, PO Box 200201, Helena, Montana 59620-0201.

(1) Prior to making an initial loan or grant determination, the council must:

(a) direct the department to ensure applications are completed as required by ARM 4.16.503 or ARM 4.23.103;

(b) review all complete applications and the accompanying materials required by ARM 4.16.503 or ARM 4.23.103;

(c) determine whether each proposed project meets the requirements of 90-9-308, 90-9-311, and 90-9-502, MCA;

(d) consider information provided by the applicant to the council at a meeting designated for such purpose;

(e) determine whether grant applicants meet the requirements of 90-9-310 and 90-9-504, MCA; and

(f) rank the projects according to the information reviewed.

(2) After the council has reviewed and ranked the projects, it will make funding decisions based on eligibility, funds availability, and project rankings.

(3) The council may provide preference to projects within targeted areas.

(1) In addition to the definitions set forth in 90-9-103, MCA, the following definitions apply for purposes of these rules:

(a) "Act" means the provisions of Title 90, chapter 9, MCA.

(b) "Marketing" means those efforts undertaken to expand the salability of the products of Montana agricultural businesses through the development of new products, processes and technologies; the improvement or modification of existing products, processes and technologies; and the development of new opportunities for selling and distributing Montana agricultural products.

(2) "Matching Funds" means both cash or in-kind match. In-kind match is calculated at the actual market price of the services rendered but no more than 25 dollars an hour. All in-kind match(es) must be project specific as opposed to the normal operation of an ongoing business. The credit for in-kind match is limited to ten percent of the total match proposed. 

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(a) Complete the application form. If seeking a grant, complete the grant eligibility portion of the application.

(b) Provide a credit report for all parties seeking the loan or grant. If a credit report is not available, an exception to this requirement must be sought.

(c) Provide a current cash flow statement and projected cash flow statements for the business for the next three years at a minimum. Any assumptions used to create this cash flow statement must be included.

(d) Provide a current and projected balance sheet for the business. Any assumptions used to create this balance sheet statement must be included.

(e) Have on file with the Secretary of State all paperwork (if any) required to do business in Montana under the name seeking the grant or loan.

(2) Applicants are encouraged to have a professional business plan.

(1) A rejected or partially funded proposal cannot come before the Council a second time within 12 months of its last presentation unless the Council votes to allow it to do so. The Department will screen applications to decide if a proposal is duplicative. 

(2) A company may not receive more than $100,000 in grant funding in any 18-month period. 

(1) Each recipient of a loan or grant must provide the council with the following reports:

(a) semiannual reports due on July 31 and January 31 of each year in which a loan or grant is active; and

(b) a final report due within 30 days of completion of the project.

(2) Each report shall describe, at a minimum:

(a) project objectives achieved;

(b) expenditures of grant and/or loan funds;

(c) receipt of matching funds;

(d) economic impact of the project;

(e) projected future activities; and

(f) other information deemed necessary by the council or department to adequately monitor or administer the project.

(3) The department shall monitor the reports for compliance with rules, statutes, and contracts, and report any issues of noncompliance to the council at the second and fourth quarterly meeting of each fiscal year.

(4) If the council determines after review of the department report that a loan or grant requires additional monitoring, it shall direct the department to gather necessary information and report back to the council at the next regularly scheduled meeting.

(5) The council may, at a loan or grant recipient's request, defer or forgive a loan and any accrued interest if the council determines that such action is in the best interest of the recipient, does not conflict with the purposes of the Act, and will not jeopardize the financial integrity of the growth through agriculture program.

(6) The council will not consider a request to defer or forgive a loan and any accrued interest unless the request is received prior to six months after the recipient is first notified by the department that the recipient has missed an obligation under the loan or grant contract.

(1) If a recipient of a loan or grant fails to meet a condition of the loan or grant, the department shall notify the recipient in writing.

(2) The council shall consider the reported default at a regularly scheduled quarterly meeting and consider whether to:

(a) grant requests for forgiveness made pursuant to ARM 4.16.512;

(b) forgive performance of a grant obligation;

(c) defer performance obligations;

(d) modify the loan or grant agreement;

(e) convert a grant to a loan;

(f) convert a loan or grant to the default interest rate; or

(g) take other action not inconsistent with statute or rule.

This rule has been repealed.

(1) In addition to the purposes of the "Montana Growth Through Agriculture Act" as set forth in 90-9-102, MCA, the purpose of the marketing and business development program is to find new or expanded markets for the products, processes, and technologies of Montana agricultural businesses.

(2) The Agricultural Marketing and Business Development Program will coordinate with existing department marketing programs and the market development activities of the Department of Agriculture.

(3) The marketing development program shall support both domestic marketing and international trade efforts.

(4) The goals of the marketing development program are to:

(a) increase sales of the products, processes, and technologies of Montana agricultural businesses on a state, national, and international level;

(b) open or expand markets for new or specialty products;

(c) monitor new and changing markets and market conditions, and provide Montana producers with such information;

(d) improve, expand, or create new relationships between buyers and sellers of the products, processes, and technologies of Montana agricultural businesses;

(e) encourage the expansion of value-added production, processes, and technologies in Montana.

This rule has been repealed.

This rule has been repealed.