1. The director may establish industries at or in connection with any of the institutions under the director’s control and may make contractual agreements with the United States, other states, state departments and agencies, and subdivisions of the state, for purchase of industry products. 2. The director may with the assistance of the department of natural resources establish and operate forestry nurseries on state-owned land under the control of the department. Residents of the adult correctional institutions shall provide the labor for the operation. Nursery stock shall be sold in accordance with the rules of the natural resource commission. The department shall pay the costs of establishing and operating the forestry nurseries out of the revolving farm fund created in section 904.706. The department of natural resources shall pay the costs of transporting, sorting, and distributing nursery stock to and from or on state-owned land under the control of the department of natural resources. Receipts from the sale of nursery stock produced under this section shall be divided between the department and the department of natural resources in direct proportion to their respective costs as a percentage of the total costs. However, property taxes due and payable on the land shall be deducted before receipts of sale are divided between the two departments ifland subject to this section is leased to an entity other than an entity which is exempt from property taxation under section 427.1. The department shall deposit itsreceipts in the revolving farm fund created in section 904.706. CS83, §217A.69 CS85, §246.705 C93, §904.705
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