Land Stewardship Project

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Beginning/Retiring Farmer Tax Credit

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Apply Today!

Have you been farming for less than 10 years? Are you renting or buying land, livestock, or machinery? Then the Minnesota Beginning Farmer Tax Credit may be for you. Applications are usually due to the Minnesota Department of Agriculture in the fall of each year. Details on the program are here.

Getting more beginning farmers on the land is critical to vibrant rural communities and stewardship of our resources. That is why the Minnesota Beginning Farmer Tax Credit was championed by the Land Stewardship Project for over 10 years. It was finally passed by the Minnesota Legislature and signed into law in 2017.

This law provides an incentive to sell or rent land or other agricultural assets — machinery, buildings, facilities, livestock, etc. — to a beginning farmer. The program is being administered by the Minnesota Rural Finance Authority. The credit available to the asset owner is:

  • 5% of the sale price or fair market value — whichever is less — of the agricultural asset, up to a maximum of $32,000.
  • 10% of the gross rental income in each of the first, second, and third years of the rental agreement, up to a maximum of $7,000 per year.
  • 15% of the cash equivalent of the gross rental income in each of the first, second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

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.

More Information

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.

Contact

Karen Stettler, LSP farm transitions organizer, 612-767-9885, e-mail

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Upcoming Events

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February 2023

Monday February 6

8:30 am – 1:30 pm
Crop, Livestock & Soil Innovation Conferences Workshop
Crop, Livestock & Soil Innovation Conferences Workshop
Monday February 6
8:30 am – 1:30 pm

The Land Stewardship Project is a co-sponsor of the 2023 I-90 & Highway 14 Tour CLASIC. Network, learn, and get inspired with area farmers and regional farming innovators as we discuss current trends for improving productivity and profitability in crop and livestock operations utilizing soil-healthy practices. The Crop, Livestock, and Soil Innovation Conferences (CLASIC) is made up of two tours in Minnesota, traveling along Interstate 90 and Highway 14, consisting of several stops.

Click this link for more details and a complete listing of workshops. Each venue’s program is unique and varied — be sure to check them all out and register for multiple events.

The speaker for the Feb. 6 event will be Dean Sponheim, a fourth-generation farmer from Mitchell County, Iowa. He began strip-tilling in 1999, aerial applying cover crops in the fall of 2012, and started a cover crop seed business in 2014 and no-tilling corn and soybeans in 2019.

To register for the Feb. 6 workshop, click here.

3:30 pm – 5:30 pm
Produce Safety Alliance Grower Training Course
Produce Safety Alliance Grower Training Course
Monday February 6
3:30 pm – 5:30 pm

This Northeast Wisconsin Technical College course is for produce growers who want to navigate the best food safety practices for growing vegetable produce. It is for farmers who need to comply with this FSMA (Food Safety Modernization Act) requirement: 

“At least one supervisor or responsible party for your farm must have successfully completed food and safety training at least equivalent to that received under standardized curriculum recognized as adequate by the Food and Drug Administration.”  

Upon completion of the course, you will receive an AFDO/PSA certificate verifying that you fulfilled the requirements of the training. The cost of the certification is covered by Wisconsin Farmers Union.  

For more information, click here.

Registration: Enroll in class #22701. Call or text NWTC at 1-888-385-6982 for help enrolling or go to this link: https://www.nwtc.edu/admissions-and-aid/contact-nwtc.

Tuesday February 7

9:00 am – 12:30 pm
Wholesale Readiness Training for Farmers
Wholesale Readiness Training for Farmers
Tuesday February 7
9:00 am – 12:30 pm

MISA, UMN Extension and Renewing the Countryside are offering training and one-to-one technical assistance for farmers who want to grow their operation into wholesale markets. Wholesale isn’t just for large-scale distributors. You can use this training and support team to prepare to sell to schools, restaurants, grocery stores and hospitals in your community. Participating farmers will be eligible for $500 mini-grants to cover expenses related to launching a wholesale enterprise. 

For details, click here.

10:00 am – 2:00 pm
Crop, Livestock & Soil Innovation Conferences Workshop
Crop, Livestock & Soil Innovation Conferences Workshop
Tuesday February 7
10:00 am – 2:00 pm

The Land Stewardship Project is a co-sponsor of the 2023 I-90 & Highway 14 Tour CLASIC. Network, learn, and get inspired with area farmers and regional farming innovators as we discuss current trends for improving productivity and profitability in crop and livestock operations utilizing soil-healthy practices. The Crop, Livestock, and Soil Innovation Conferences (CLASIC) is made up of two tours in Minnesota, traveling along Interstate 90 and Highway 14, consisting of several stops.

Click this link for more details and a complete listing of workshops. Each venue’s program is unique and varied — be sure to check them all out and register for multiple events.

The speakers for the Feb. 7 workshop are Dean Sponheim and Andy Linder. Sponheim is a 4th generation farmer from Mitchell County Iowa. He began strip-tilling in 1999, aerial applying cover crops in the fall of 2012, and started a cover crop seed business in 2014 and no-tilling corn and soybeans in 2019.

Linder farms with his dad near Easton, Minn. Their soil health journey unintentionally started in 2010 when they purchased a vertical tillage machine. In fall 2016 they put cover crops on every acre.They now no-till most of their corn aces and do some strip-till trials.

For more information and to register, click here.

Wednesday February 8

9:00 am – 2:30 pm
Crop, Livestock & Soil Health Conferences Workshop
Crop, Livestock & Soil Health Conferences Workshop
Wednesday February 8
9:00 am – 2:30 pm

The Land Stewardship Project is a co-sponsor of the 2023 I-90 & Highway 14 Tour CLASIC. Network, learn, and get inspired with area farmers and regional farming innovators as we discuss current trends for improving productivity and profitability in crop and livestock operations utilizing soil-healthy practices. The Crop, Livestock, and Soil Innovation Conferences (CLASIC) is made up of two tours in Minnesota, traveling along Interstate 90 and Highway 14, consisting of several stops.

Click this link for more details and a complete listing of workshops. Each venue’s program is unique and varied — be sure to check them all out and register for multiple events.

The speakers for the Feb. 8 workshop are Dean Sponheim, Martin Larsen, and Andy Linder.

Sponheim is a fourth-generation farmer from Mitchell County, Iowa. He began strip-tilling in 1999 and began no-tilling his corn and soybean acres in 2019. Sponheim started aerial applying cover crops in 2012 and in 2014 started a cover crop seed business.

Martin Larsen farms 700 acres near Byron, Minn., producing corn, soybeans, cover crops and food-grade oats in a full no-till system. As an Olmsted County Soil and Water Conservation District staffer, he gives technical assistance to farmers and manages soil health test plots.

Andy Linder farms with his dad, Don, near Easton, Minn. Together, they raise corn, soybeans, oats, canning crops, and grass hay. Their journey to soil health unintentionally started in 2010 when they purchased a vertical tillage machine. In the fall of 2016, a cover crop was put on every acre and they continue using cover crops. He has transitioned to most corn being no-till.

For more information and to register for the Feb. 8 workshop, click here.

View Full Calendar

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