<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s1f16b0bb-061c-477d-87cc-74af6e737fc3P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s1f16b0bb-061c-477d-87cc-74af6e737fc3C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s1f16b0bb-061c-477d-87cc-74af6e737fc3000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:01"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000000">12:21:01:01</span></a><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000001">.  Definitions.</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> Terms defined in SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1-16</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">B</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">-</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1</span></a><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> have the same meaning when used in this article. In addition, terms used in this article mean:</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (1)  "Agricultural improvements," any improvements, buildings, structures, or fixtures suitable for use in farming which are located on agricultural land, including the single-family dwelling located on agricultural land that is or will be occupied by the beginning farmer and any structure attached to or incidental to the use of the building;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (2)  "Agricultural land," land that is suitable for use in farming and is or will be operated as a farm;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (3)  "Bond purchaser," any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity, other than a participating lender, that purchases an authority bond under the program in connection with a contract sale or loan to the beginning farmer;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (4)  "Commissioner," the commissioner of the Governor's Office of Economic Development;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">5</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">)  "Depreciable agricultural property," personal property suitable for use in farming for which an income tax deduction for depreciation or cost recovery is allowable in computing federal income tax under</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> 26 U.S.C. </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">§ 144</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(a)</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(11)(B)</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> (May 1, 2023),</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> and which is qualified for financing with tax-exempt bonds pursuant to</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> 26 U.S.C.</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> § 144 </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(December 31, 2024)</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">6</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">)  "Eligible applicant," an individual who is a first-time farmer, as defined in</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> 26 U.S.C.</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> § 147(c)</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(2)(c)</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> of the Internal Revenue Code </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(December 31, 2024)</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">, who satisfies all of the criteria contained in SDCL </span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">subdivision </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1-16</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">B</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">-</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1</span></a><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">3</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">) and this article relating to recipient eligibility, and who operates or will operate a farm;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (7)  "Farm," a farming enterprise </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">that</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> is recognized in the community as a farm rather than a rural residence;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (8)  "Net worth," total assets minus total liabilities as determined in accordance with generally accepted accounting principles with exceptions and exemptions reasonably related to an equitable determination of the beginning farmer's net worth;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (9)  "Participating lender," any lender that purchases an authority bond under the program;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (10)  "Program," the beginning farmer bond program;</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (11)  "Project," a description of the intended use of the loan proceeds;</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> and</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    (12)  "Qualified purpose," agricultural land </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">or</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> depreciable agricultural property.</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000001">Source:</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> 22 SDR 97, effective January 22, 1996; 23 SDR 91, effective December 9, 1996; 35 SDR 67, effective September 30, 2008</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">; SL 2019, ch 235, § 37 and 38, effective April 14, 2019; 52 SDR 49, effective November 17, 2025</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">.</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000001">General Authority:</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1-16</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">B</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">-</span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">70</span></a><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">.</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">    </span><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000001">Law Implemented:</span><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1-16B-1</span></a><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0-000002">1-16B-57</span></a><span class="s1f16b0bb-061c-477d-87cc-74af6e737fc3C0">.</span></p><p dir="ltr" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3P0"><span xml:space="preserve" class="s1f16b0bb-061c-477d-87cc-74af6e737fc3000003"> </span></p></div></body></html>