Tax Credit Still Available For New And Beginning Farmers
(St. Paul)- Tax credit is still available for the sale or least of land, equipment, machinery and livestock in Minnesota to new and beginning farmers throughout the state as part of the Minnesota Department of Agriculture's Rural Finance Authority.
The money was set aside for new farmers to help begin their trade, as capital for starting is recognized as a big drawback for new farmers.
The MDA recognizes beginning farmers as a Minnesota resident with the desire to start farming or who began farming in the state in the last ten years. They must also provide projected earnings statements, have a net worth of less than $903,000, and enroll in or complete an approved financial management program. Three levels of a tax credit 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
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