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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

  • For Farmers & Landowners
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      • Farmland Clearinghouse
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      • Conservation Leases
      • Beginning/Retiring Farmer Tax Credit
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      • No-till
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Upcoming Events

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July 2025

Friday July 18

9:30 am – 2:30 pm
Russell Hedrick Soil Health Event: Lac qui Parle County
Friday July 18
9:30 am – 2:30 pm
Russell Hedrick Soil Health Event: Lac qui Parle County
1174 295th Ave, Dawson, MN 56232

Details are here.

Tuesday July 22

9:00 am – 2:30 pm
Ray Archuleta Soil Health Series: Sartell
Tuesday July 22
9:00 am – 2:30 pm
Ray Archuleta Soil Health Series: Sartell
2611 17th St N, Sartell, MN 56377, USA

Details are here.

12:00 pm – 2:00 pm
Unlocking Conservation Resources for Communities & Farms
Tuesday July 22
12:00 pm – 2:00 pm
Unlocking Conservation Resources for Communities & Farms
Far North Spirits, 2045 220th Avenue, Hallock, MN 56728, USA

Join Renewing the Countryside and Natural Resources Conservation Service (NRCS) this summer at one of their eight conservation events in a town near you, where you will:

  • Learn how conservation benefits Minnesota’s rural communities.
  • Hear from a panel of local speakers.
  • Discover available NRCS Farm Bill programs and the economics of on-farm practices.
  • Enjoy a complimentary lunch, plus a chance to win door prizes.
  • Network with local farmers, neighbors, and conservation professionals.
  • Receive helpful materials and personalized support on next steps after the event.  

For more information, click here. 

Locations & Dates:
Each event is free, open to all, and runs from noon to 2 p.m. at the venues listed. Space is limited, please register in advance.

  • Hallock (Kittson County) – Tues, July 22 @ Far North Spirits
  • Elbow Lake (Grant County) – Wed, July 23 @ Elbow Lake Community Building
  • Sleepy Eye (Brown County) – Thur, July 24 @ Sleepy Eye Brewing Company
  • Milaca (Mille Lacs County) – Tues, July 29 @ Gorecki Community Center
  • Mora (Kanabec County) – Thur, July 31 @ Sapsucker Farms Yellow Belly Cidery
  • Owatonna (Steele County) – Tues, August 5 @ Owatonna Public Utilities Building
  • Jordan (Scott County) – Wed, August 6 @ Ridges at Sand Creek
  • Fairmont (Martin County) – Thur, August 7 @ Red Rock Center for the Arts
7:00 pm – 9:00 pm
Agrivoltaics: Growing Forages & grain Crops
Tuesday July 22
7:00 pm – 9:00 pm
Agrivoltaics: Growing Forages & grain Crops
Online Webinar

This free webinar series is about cattle and sheep solar grazing and growing forages or grain crops under solar panels.

The practice of grazing livestock under solar panels has become increasingly popular. It is often referred to as agrivoltaics or solar grazing. This system involves the use of land for both solar energy production and livestock grazing or crop production. In this session, Sabrina Florentino will talk about forage production research and the Rauenhorst Farm Agrivoltaics Project on growing row crops under solar panels.

To register, click here. 

Wednesday July 23

9:00 am – 2:30 pm
Ray Archuleta Soil Health Series: Villard
Wednesday July 23
9:00 am – 2:30 pm
Ray Archuleta Soil Health Series: Villard
15290 127th St, Villard, MN 56385, USA

Details are here.

View Full Calendar

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111 North First Street
Montevideo, MN 56265

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Lewiston, MN 55952

(507) 523-3366

Minneapolis

821 E. 35th Street #200
Minneapolis, MN 55407

(612) 722-6377

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