Bills Provide Help For Beginning Farmers

(Agrinews.com) –  The biggest dilemma for today’s new farmers is finding land that’s not only affordable but fits the farmer’s ideal profile.

Meanwhile, the average age of farmers has been steadily increasing, and many need to decide what will happen next with their land.

Minnesota Sen. Mike Goggin, R-Red Wing, and Rep. Nels Pierson, R-Rochester, wanted to do something to help that situation. They’ve served as lead authors for Senate File 1414 and House File 608, respectively, to provide tax credits both to beginning farmers and landowners who sell to them.

“We have an aging population farming, the average around 60 years old,” Goggin said. “What’s happening is that farming’s gotten so expensive with regulations and everything else, that for young farmers, it’s hard for them to do it because they can’t get the land or the finance.”

The House and Senate bills each state that owners of agricultural assets who sell or rent these assets to beginning farmers may take a state income tax credit on the sale or rental. The credit would be equal to 5 percent of the sale price, 10 percent of the cash rent fee or 15 percent of the crop share value.

Additionally, the beginning farmer may take a tax credit if they participate in an approved financial management program. The credit would cover the cost of the program.

Julie Arnold, a beginning farmer from Lindstrom, Minn., and who works with the Land Stewardship Project, said she is pleased to see a bill that may help increase the number of farmers on the land and start more discussions.

“A lot of the times when we have these conversations, it’s with other white folks who need access to land,” Arnold said. “I know if that is the conversation we’re having, I can’t imagine what it’s like for people of color who want to access land. This bill doesn’t address those inequities, but it does give the incentive for the landowner to sell to the beginning farmer.”

Arnold testified for the bill while it was passing through the House and Senate Tax Committees.

“I testified that land access is the greatest barrier for beginning farmers, and I talked about how at LSP, we believe we need more farmers on the land,” she said. “Instead of seeing more consolidation, we need to incentivize smaller farmers to continue going. The direction we see farming going is not that way. This would incentivize more family farmers.”

Goggin said he hopes the tax changes would encourage more people to farm, whether it’s starting on new land, or continuing on a family farm. He also said that he’s noticed a lot of younger farmers trying out new techniques with farming that could take time to pay off.

“Agriculture is the backbone of our nation, and I don’t want to see us end up with not having a good, strong farming economy in the state,” Goggin said.

Senate File 1414 is co-authored by Sen. Andrew Mathews, R-Milaca, Rich Draheim, R-Madison Lake, Kent Eken, DFL-Twin Valley, and Dan Sparks, DFL-Austin. House File 608 is co-authored by Rep. Jason Rarick, R-Pine City, Josh Heintzeman, R-Baxter, Mary Franson, R-Alexandria, Greg Davids, R-Preston, Jeanne Poppe, DFL-Austin, Gene Pelowski, DFL-Winona, Clark Johnson, DFL-North Mankato, and David Bly, DFL-Northfield.