Historic win for Minnesota young and beginning farmers
Wednesday, June 14, 2017
Governor Mark Dayton signed ten budget bills that included a first-of-its-kind beginning farmer tax credit. Authored by Rep. Nels Pierson (R-Rochester) and Sen. Mike Goggin (R-Redwing), the bill supports the transition of land to young and beginning farmers through a tax credit incentive.
Central Minnesota Young Farmers Coalition co-founder (CMNYFC) Matthew Fitzgerald, an organic grain farmer, said, "This bill offers a win-win solution for the future of farming in Minnesota. This is also the first bill to include an incentive for the sale of farmland — making it a historic win." Co-founder and conventional hops farmer Eric Sannerud added, "Less than four percent of Minnesota farmers are under the age of 35 and access to land is the number one barrier to getting started. This bill offers a tangible way to address pressing problems."
Through the bill, landowners receive a state income tax credit when they sell or rent land or agricultural assets to a beginning farmer. The credit equals five percent of the sale price or ten percent of the cash rent, or fifteen percent for a cash share agreement. In turn, the beginning farmer must take a farm management course to qualify for the tax incentive and would be eligible for a tax credit covering the full cost of training. The tax credit is effective in the 2018 tax year and is funded at 12 million dollars for the 2020-2021 biennium. The funds are available on a first-come-first-served basis. Finally, the sunset for the credit is 2023 with the Rural Finance Authority issuing a report on the effectiveness of the credit no later than Feb. 1, 2022.
Category: Wadena County