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SF1428 (Legislative Session 94 (2025-2026))

Beginning farmer tax credits eligibility expansion provision

Related bill: HF1292

AI Generated Summary

Purpose of the Bill

This bill aims to expand eligibility for beginning farmer tax credits in Minnesota. The intent is to support new farmers entering the agriculture industry by providing financial incentives.

Main Provisions

  • Beginning Farmer Definition: The bill specifies the criteria for someone to qualify as a beginning farmer. A new farmer must be a Minnesota resident, seeking to enter farming or have done so within the last ten years, and intend to farm within Minnesota's state borders.

  • Family Restrictions: To qualify for the tax credits, the beginning farmer must not be a family member of the owner of the agricultural assets they want to purchase or rent, unless specific conditions are met.

  • Eligibility Requirements:

    1. The farmer’s net worth must not exceed a set limit.
    2. They must provide primary physical labor and management of their farm.
    3. They should have adequate farming experience or demonstrate relevant farming knowledge.
    4. The farmer should show farming as a significant income source and have profit potential through predicted earnings.
    5. They need to be enrolled in or have completed an approved financial management program.

  • Waiver for Education or Experience: The authority may waive the financial management program requirement if the beginning farmer has a related four-year degree, relevant job experience, or certification as an adult farm management instructor.

  • Notification Requirement: Beginning farmers must inform the authority if they no longer meet eligibility within a three-year certification period to maintain tax credits.

Significant Changes

The significant change made by this bill is the expansion of the eligibility criteria for tax credits to include more individuals and certain types of entities meeting specific requirements. The revision aims to include more diverse and smaller-scale new farmers in the benefits of these tax incentives.

Relevant Terms

beginning farmer, tax credits, agricultural assets, financial management program, net worth, Minnesota resident, farming eligibility, family member restrictions, waiver, authority certification.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading
February 16, 2025SenateFloorActionIntroduction and first reading
February 16, 2025HouseFloorActionReferred toAgriculture, Veterans, Broadband and Rural Development
February 16, 2025HouseFloorActionReferred toAgriculture, Veterans, Broadband, and Rural Development
February 16, 2025SenateFloorActionReferred toAgriculture, Veterans, Broadband, and Rural Development
March 23, 2025SenateFloorActionComm report: To pass as amended and re-refer toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill amends the definitions relevant to beginning farmer tax credits under section 41B.0391, subdivision 1.",
      "modified": [
        "Updates to the criteria defining a beginning farmer, including eligibility requirements and conditions under which the status and benefits of a beginning farmer may terminate."
      ]
    },
    "citation": "41B.0391",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The amendment refers to eligibility requirements needing to comply with net worth limits as defined in section 41B.03, subdivision 3.",
      "modified": [
        "Clarification on how net worth limits are applied in determining eligibility for beginning farmer status."
      ]
    },
    "citation": "41B.03",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the definition of emerging farmer in section 17.055, subdivision 1.",
      "modified": []
    },
    "citation": "17.055",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The reference relates to the definition of livestock dealer as described in section 17A.03, subdivision 7.",
      "modified": []
    },
    "citation": "17A.03",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill includes the definition of resident as provided in section 290.01, subdivision 7.",
      "modified": []
    },
    "citation": "290.01",
    "subdivision": "subdivision 7"
  }
]

Sponsors