1.    The state board of agricultural research and education may use up to ten percent of the moneys in the agricultural research fund, not to exceed fifty thousand dollars per year, for administrative expenses and annually shall apportion the remaining proceeds of the agricultural research fund as follows:

a.    Seventy percent to research activities affecting North Dakota agricultural commodities that account for at least two percent of the gross sales of all agricultural commodities grown or produced in the state. The percentage of the dollars available for each agricultural commodity under this section may not exceed the percentage that the gross sales of the agricultural commodity bear to the North Dakota gross sales of all agricultural commodities grown or produced during the previous year, as determined by the agricultural statistics service; b.    Eighteen percent to research activities affecting North Dakota animal agriculture; and c.    Twelve percent to research activities affecting new and emerging crops in North Dakota.

2.    The state board of agricultural research and education shall solicit proposals for research from the public and private sectors and shall appoint committees to review    the proposals and award the agricultural research grants on a competitive basis. Each committee must consist of a majority of agricultural producers selected in consultation with the agricultural commodity groups representing commodities that are the subjects of the proposed research and may include researchers and other individuals knowledgeable about the proposed area of research. Whenever possible, the committees shall require a grant recipient commit matching funds.

3.    The state board of agricultural research and education shall develop policies regarding the award of research grants, including requirements for matching funds, cooperation with other in-state and out-of-state researchers, and coordination with other in-state and out-of-state proposed or ongoing research projects.