MDA Now Accepting Applications for 2024 Beginning Farmer Tax Credit

The Minnesota Department of Agriculture’s Rural Finance Authority is now accepting applications for the 2024 Beginning Farmer Tax Credit, an annual program available to landlords and sellers who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers.

Total funding available for the 2024 Beginning Farmer Tax Credit program is $4 million, and the credits are funded in a first-come, first-served manner, so applicants are highly encouraged to apply as early as possible. 

Qualifying asset owners can include individuals, trusts, or qualified pass-through entities renting or selling land, livestock, facilities, buildings, or machinery used for farming in Minnesota to a beginning farmer. 

A beginning farmer is defined as a Minnesota resident with the desire to start farming or who began farming within the past 10 years. They must provide positive projected earnings statements, have a net worth less than $979,000, and enroll in, or have completed, an approved farm business management program.

Beginning farmers are also eligible for a nonrefundable Minnesota tax credit equal to the amount paid for FBM tuition, up to a maximum of $1,500. This tax credit is available for up to three years.

Eligibility requirements and application materials can be found on the Beginning Farmer Tax Credit web page on the MN Department of agriculture website at www.mda.state.mn.us