To qualify for these credits, the “beginning farmer” involved must be someone who:
• Is a Minnesota resident who is seeking entry, or has entered into farming within the past 10 years.
• Is a farmer who will provide the majority of the labor and management of the farm that is located in Minnesota.
• Can provide positive projected earnings statements.
• Is not directly related to the owner of the agricultural asset.
• Has a net worth that does not exceed $800,000.
• Is enrolled in a financial management program approved by the Rural Finance Authority.
Financial Management Education
Beginning farmers who participate in the Land Stewardship Project’s Farm Beginnings and Journeyperson courses can qualify for this tax credit. For beginning farmers enrolled in a financial management program:
- The credit is equal to 100% of the cost of participating in a financial management program (up to $1,500 per year)
- The credit can be taken for three years.
- If the amount of the credit exceeds the tax liability, the excess can be carried forward three years.
The Land Stewardship Project’s goal is to have more people farming on the land, and the Minnesota Beginning Farmer Tax Credit is one tool that can provide a pathway toward that goal. Details are available from the Rural Finance Authority and by downloading LSP’s Beginning Farmer Tax Credit fact sheet.