Applications begin Oct. 1 for Beginning Farmer Tax Credit
ST. PAUL: A program that provides tax incentives for farmers who sell farmland to beginning farmers begins taking applications Oct. 1.
According to the Minnesota Department of Agriculture’s Rural Finance Authority, beginning farmers and asset owners can apply for the tax credit for the sale or lease of land, equipment, machinery and livestock.
To qualify, the applicant must be a Minnesota resident who wants to start farming – or who began farming within the past ten years – provide projected earnings statements, have a net worth less than $836,000 and enroll in or have completed an approved financial management program.
A separate tax credit to offset the cost of the required financial management program is available for a maximum of $1,500 per year – for up to three years.
The beginning farmer cannot be directly related to the person from whom he or she is buying or renting assets. The tax credit for the sale or lease of assets can then be applied to the Minnesota income taxes of the owner of the farmland or agricultural assets.
The program, which includes three different levels of tax credits, is available on a first-come, first-served basis.
The application and additional information about the program is available on the Minnesota Department of Agriculture’s website, www.mda.state.mn.us/bftc.