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Last Updated: 9/6/2017

Beginning Farmer Incentive Credit

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​Owners of agricultural assets who sell or rent their assets to beginning farmers in Minnesota may be eligible for a nonrefundable credit. Unused portions of this credit can be carried over for 15 years.

When is this credit available?

The Beginning Farmer Incentive Credit is available beginning in tax year 2018.
 

How much is the credit?

The credit amount is subject to approval by the Rural Finance Authority. The amount will depend on the type of sale or rental agreement and the price or fair market value of the assets, as shown in the table below.
 
​ If you ​ Then you may qualify for a credit of Your maximum credit is
​ Sold assets to a beginning farmer ​ 5% of the lesser of the sale price or 
 the fair market value of the asset
​ $32,000

​ Rented assets to a beginning
 farmer

​ 10% of the gross rental income

​ $7,000 per year in the first, 
 second, and third years

​ Rented assets to a beginning 
 farmer in farmer in a share rent
 agreement

​ 15% of the cash equivalent of the 
 gross rental income

​ $10,000 per year in the first, 
 second, and third years

Who qualifies for this credit?

The credit may be claimed only after approval and certification by the Rural Finance Authority. The Rural Finance Authority will provide guidance on the certification process.