Minnesota Beginning Farmer Tax Credit

Tax credits are funded in a first-come, first-served manner.
The Minnesota Beginning Farmer Tax Credit provides state tax credits to landlords and sellers (asset owners) who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers in the current tax year. Funding is limited to $4 million, and tax credits are funded in a first-come, first-served manner, so applicants are advised to apply early in the year. Qualifying asset owners can include individuals, trusts, or qualified pass-through entities renting or selling land, livestock, facilities, buildings, or machinery used for farming in Minnesota to a beginning farmer. Through changes made to the program during the 2023 legislative session, parents, grandparents, and siblings are now eligible for the tax credit if they sell farmland to a direct family member. Tax credits range from 8% to 15% of asset price, up to $50,000 for sales. Beginning farmers are also eligible for a nonrefundable Minnesota tax credit equal to the amount paid for Farm Business Management tuition, up to a maximum of $1,500. This tax credit is available for up to three years.