Apply for Beginning Farmer Tax Credit by Nov. 1
The Minnesota Department of Agriculture's Rural Finance Authority is reminding beginning farmers that the deadline to apply for the Beginning Farmer Tax Credit is November 1, 2018. The tax credit can be used for the sale or lease of land, equipment, machinery and livestock.
Applicants must be a Minnesota resident, the desire to begin farming or began farming in the last 10 years, have a net worth of less than $816,800, provide projected earning statements, and enrolled in a farm financial management program. In addition the beginning farmer cannot be related to the person that they are buying or renting assets.
There are three levels of tax credits available, 5 percent of the lesser of the sale price or fair market value of the agricultural asset up to a maximum of $32,000, 10 percent of the gross rental income of each of the first, second and third years of the rental agreement up to a maximum of $7,000 a year and 15 percent 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. Also, note this tax credit is for Minnesota, not Federal taxes. For more information contact the Minnesota Department of Agriculture's Rural Finance Authority. However, most agricultural lenders are aware of the program and how it works.