MDA’s Rural Finance Authority Tax Breaks For Beginning Farmers
The Minnesota Department of Agriculture's (MDA) Rural Finance Authority has a program that provides Minnesota tax credits for the sale or lease of land, livestock or equipment made to beginning farmers. This is not a Federal tax credit, it is only a credit on your Minnesota taxes but, every little bit helps!
Here is their definition of a beginning farmer: "a Minnesota resident with the desire to start farming or who began farming in Minnesota within the past 10 years, provide positive projected earnings statements, have a new worth of less than $ 851,000, and enroll on, or have completed an approved financial management program."
So, this is really a Minnesota tax credit for the owners of land, livestock or equipment sold or leased to a qualified beginning farmer in Minnesota. Beginning farmers can also apply for a separate tax credit to help offset the cost of the financial management program for up $1,500 per year for three years. Applications must be received by October 1, 2021 and is available on a "first come first served basis" so I assume funds are limited.
More information can be found on the MDA website or you can call the MDA at 651-201-6000.