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Showing posts from March, 2018

Beginning Farmer Tax Credit

By David Bau, Extension Educator

In May 2017 a new tax credit for Minnesota beginning farmers became available.  The new law provides tax credits for the rent or sale of farm land or a variety of farm assets to beginning farmers.  Agricultural Assets include: land, livestock, facilities, buildings and machinery used for farming in Minnesota.

To qualify as a beginning farmer you must be entering or entered farming within the last 10 years.  You must provide a majority of the labor and management for farm located in Minnesota.
Have adequate experience and knowledge for type of farming you are engaged in.  Be able to provide positive projected earnings statements.  You are not directly related to owner of the agricultural asset.  Have a net worth that does not exceed current limit of $800,000.

The beginning farmer will need to participate in an approved financial management program.  Costs of this program may also be eligible for a tax credit for 3 years for maximum of $1,500 per year.

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