§ 22.
Restrictions--Application.
The restrictions in § 21 of Article XVII do not apply to:
(1) A family farm corporation or syndicate. A family farm corporation or syndicate is a
corporation or syndicate engaged in farming or the ownership of agricultural land, in which a
majority of the partnership interests, shares, stock, or other ownership interests are held by members
of a family or a trust created for the benefit of a member of that family. The term, family, means
natural persons related to one another within the fourth degree of kinship according to civil law, or
their spouses. At least one of the family members in a family farm corporation or syndicate shall
reside on or be actively engaged in the day-to-day labor and management of the farm. Day-to-day
labor and management shall require both daily or routine substantial physical exertion and
administration. None of the corporation's or syndicate's partners, members, or stockholders may be
nonresident aliens, or other corporations or syndicates, unless all of the stockholders, members, or
partners of such entities are persons related within the fourth degree of kinship to the majority of
partners, members, or stockholders in the family farm corporation or syndicate;
(2) Agricultural land acquired or leased, or livestock kept, fed or owned, by a cooperative
organized under the laws of any state, if a majority of the shares or other interests of ownership in
the cooperative are held by members in the cooperative who are natural persons actively engaged
in the day-to-day labor and management of a farm, or family farm corporations or syndicates, and
who either acquire from the cooperative, through purchase or otherwise, such livestock, or crops
produced on such land, or deliver to the cooperative, through sale or otherwise, crops to be used in
the keeping or feeding of such livestock;
(3) Nonprofit corporations organized under state nonprofit corporation law;
(4) Agricultural land, which, as of the approval date of this amendment, is being farmed, or
which is owned or leased, or in which there is a legal or beneficial interest, directly or indirectly
owned, acquired, or obtained by a corporation or syndicate, if such land or other interest is held in
continuous ownership or under continuous lease by the same such corporation or syndicate. For the
purposes of this exemption, land purchased on a contract signed as of the approval date of this
amendment is considered as owned on that date;
(5) Livestock, which as of the approval date of this amendment, is owned by a corporation or
syndicate. For the purposes of this exemption, livestock to be produced under contract for a
corporation or syndicate are considered as owned, if the contract is for the keeping or feeding of
livestock and is signed as of the approval date of this amendment, and if the contract remains in
effect and is not terminated by either party to the contract. This exemption does not extend beyond
the term of any contract signed as of the approval date of this amendment;
(6) A farm operated for research or experimental purposes, if any commercial sales from the farm
are only incidental to the research or experimental objectives of the corporation or syndicate;
(7) Land leases by alfalfa processors for the production of alfalfa;
(8) Agricultural land operated for the purpose of growing seed, nursery plants, or sod;
(9) Mineral rights on agricultural land;
(10) Agricultural land acquired or leased by a corporation or syndicate for immediate or potential
nonfarming purposes, for a period of five years from the date of purchase. A corporation or syndicate
may hold such agricultural land in such acreage as may be necessary to its nonfarm business
operation, but pending the development of the agricultural land for nonfarm purposes, such land may
not be used for farming except under lease to a family farm corporation or family farm syndicate or
a non syndicate or noncorporate farm;
(11) Agricultural lands or livestock acquired by a corporation or syndicate by process of law in
the collection of debts, or by any procedures for the enforcement of a lien, encumbrance, or claim
thereon, whether created by mortgage or otherwise. Any lands so acquired shall be disposed of
within a period of five years and may not be used for farming before being disposed of, except under
a lease to a family farm corporation or syndicate, or a nonsyndicate or noncorporate farm. Any
livestock so acquired shall be disposed of within six months;
(12) Agricultural lands held by a state or nationally chartered bank as trustee for a person,
corporation or syndicate that is otherwise exempt from the provisions of §§ 21 to 24, inclusive, of
Article XVII;
(13) A bona fide encumbrance taken for purposes of security;
(14) Custom spraying, fertilizing, or harvesting;
(15) Livestock futures contracts, livestock purchased for slaughter within two weeks of the
purchase date, or livestock purchased and resold within two weeks.
History: Section proposed by initiated measure, ch 333, adopted Nov. 3, 1998.