This is a two-part application. Both beginning farmers and asset owners must submit applications with leases and/or sale documents to hold their place in line for first-come, first-served funding. Applications open annually in early January. Tax Credit Details The tax credit will go to the asset owner (landlord/seller) for leases and sales taking place in the current tax year as follows: Tax Credit Amount Maximum Tax Credit Application Due Date Cash Lease 10 percent of annual rental $7,000 July 17, 2026 income Share Rent Lease 15 percent of annual rental $10,000 July 17, 2026 income Sales 8 or 12 percent of sale price** $50,000 Nov. 1, 2026 Beginning Farmer Equal to tuition paid $1,500 Nov. 1, 2026 FMB tuition (see below) reimbursement In each given tax year, the asset owner can claim credits in either a rental or a sale with each eligible beginning farmer. We will mail tax credit certificates and filing instructions by the end of January each year. Eligibility Beginning farmer must • Be a Minnesota resident who is seeking entry, or has entered into farming within the last 10 years. • Be renting/buying as an individual ( not an LLC or other business entity) • Provide the majority of labor and management on a farm that is located in Minnesota. • Have some farming experience and knowledge • Provide positive projected earnings • Have a net worth that does not exceed the limit provided under Minn. Stat. § 41B.03, subdivision 3, paragraph (a), clause (2). This limit is $1,042,000 in 2025. • Be enrolled in or have completed an approved farm business management (FBM) program within ten years of their first year of farming (more details below). Asset owners • May be an individual, trust, LLC, partnership, S-Corp, or other qualified pass-through entity. • May claim the tax credit for as many years as the beginning farmer(s) they work with are eligible. • Cannot be an equipment dealer, livestock dealer, or comparable entity engaged in the business of selling agricultural assets for profit.
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