New Initiative Provides Tax Credit for Beginning Farmers

In an attempt to strengthen Minnesota’s local and family farms, a set of tax credits has been proposed in the Jobs, Agriculture, and Rural Development Committee. The first tax credit is designed to incentivize the selling or renting of agriculture land, equipment, or other assets to qualified beginning farmers or livestock producers who might otherwise struggle to establish a successful venture. A tax credit would be applied to the owner of agricultural land at 5% of the sale price, 10% of the gross rental income, or 15% of the cash equivalent gross rental income from the first three years of a rent agreement.

To promote responsible and successful business practices, another tax credit would be made available to the farmers themselves once they successfully complete a financial management course. Both tax credits would be provided for through an appropriation to the Rural Finance Authority to build on their existing work. The bill passed the Jobs, Agriculture, and Rural Development Committee, and will be heard in the Taxes Committee before the language is put in front of the entire Senate. (S.F. 993)

Senate DFL Media