Minnesota Offers Tax Credit for Beginning Farmers
The Minnesota Department of Agriculture’s (MDA) Rural Finance Authority is now accepting applications for a tax credit for the sale or lease of land, equipment, machinery, and livestock in Minnesota by beginning farmers. To qualify, the applicant must be a Minnesota resident with the desire to start farming or who began farming in Minnesota within the past ten years, provide positive projected earnings statements, have a net worth less than $851,000, and enroll in, or have completed an approved financial management program. Three levels of credits are available: 5% of the lesser of the sale price or fair market value of the agricultural asset up to a maximum of $32,000; 10% of the gross rental income of each of the first, second and third years of a rental agreement, up to a maximum of $7,000 per year; or 15% of the cash equivalent of the gross rental income in each of the first, second or third year of a share rent agreement, up to a maximum of $10,000 per year. The Beginning Farmer Tax Credit is available on a first-come, first-served basis. Applications must be received by October 1, 2021.