• Except for farmland sales, cannot be directly related to the owner of the agricultural asset. This includes parents, grandparents, brothers, sisters, spouses, children, and grandchildren of the beginning farmer and their spouse. **Land sales only • Parents, grandparents, and siblings are eligible for the tax credit if they sell farmland to a direct family member. This does not apply to leases or non-land sales (livestock, vehicles, etc.). • Credits for farmland sales will be 8 percent of the sale price for all beginning farmers buyers 2. Does not rent land from a relative. This includes anyone related to the beginning farmer by blood or marriage (ex. parent, in-law, grandparent, aunt/uncle, great-aunt/uncle, sibling, step-sibling, cousin, second cousin, etc.). 3. Does not have a lease term greater than three years. Farm Business Management Requirement Beginning farmers must be enrolled in or have completed an approved farm business management (FBM) program within ten years of their first year of farming for their asset owners to be eligible for the tax credit. Reimbursement Beginning farmers are eligible for a nonrefundable Minnesota tax credit equal to their FBM tuition paid up to a maximum of $1,500. This tax credit is available for up to three years. Waiver and 12 percent if the buyer is also a limited land access farmer. • Limited Land Access Farmer must meet all of the following: 1. Does not own any farmland. Beginning farmers may request to waive the FBM requirement if they have a 4-year agricultural degree, reasonable work experience in agricultural finance or have already completed an approved FBM program. If the beginning farmer has already completed 30 credits of FBM courses (or the equivalent hours in another approved FBM program), they do not need to register for additional courses. Other information MDA can approve leases with one, two, or three year terms. Recertifications for the second and third years of the lease will receive first priority in asset owner tax credit approvals if the beginning farmer submits their application by the deadline. If applying with a multi-year lease, the asset owner must reapply with a lease in the first year of the contract, and the beginning farmer must reapply every year to confirm their eligibility. An “agricultural asset” is defined as agricultural land, livestock, facilities, buildings, and machinery used for farming in Minnesota.
126
Made with FlippingBook - Online Brochure Maker