Legislative Updates

April 2022

Ohio passes the Family Farm ReGeneration Act (HB95, first introduced in 2019)

  • Establishes a tax credit for owners of agricultural assets, which grants income and franchise tax to anyone who sells or rents their assets to a beginning farmer.

  • The program will begin on July 18, 2022

January 2022

  • January 2022 LB1103 introduced
    • Would extend net worth maximum to $1M
    • Excludes any pension, retirement, other deferred benefits from influencing net worth
  • Fiscal note on this bill was nearly $10M annually.
    • $9,840,000 yrs 22-23
    • $10,332,000 yrs 23-24
  • No movement on this Bill due to large fiscal note
  • Proposal for research on administering the NextGen program with Dept of Ag
    • Didn’t get any movement
    • Senator’s office that put forward resolution wants to have discussion to reconsider this next legislative session

March 2022

Beginning Farmer Tax Credit in Ohio: HB 95

Ohio Senate Ways and Means Committee (testimonials)

March 2022

Minnesota House Committee on Agricultural Policy passes HF 3713 allowing individually owned LLC's to qualify for Minnesota's Beginning Farmer Tax Credit (BFTC).

March 2022

Minnesota Beginning Farmer Tax Credit Report

  • Credit for Transfer of Ag Assets
    • Tax Year 18 - 407 participants 
    • Tax Year 19 - 540 participants
    • Tax Year 20 - 620 participants
  • BF Management Credit
    • Tax Year 18 - 325 participants - $317,016
    • Tax Year 19 - 418 participants - $434,893
    • Tax Year 20 - 382 participants - $472,457
    • Leases increase by 100-200 each year, sales stay the same, around 50 each year, share crop hovers around 20-30 each year
  • Geography
    • Owners and BFRs most often live in southwestern Minnesota

June 2021

Ohio: HB 95 passes the Ohio House, establishing a Beginning Farmer Tax Credit

June 2021

Iowa Senate File 619 passes in tax reform legislation

  • Expands Beginning Farmer Tax Credit to include agricultural improvements, including buildings or structures on any size parcel of land.
    • Allows the BFTC to apply to principle lease of equipment or structures without a land lease
    • Expands the Tax Credit to allow asset owners to participate for up to 15 years

February 2021

Illinois General Assembly Black Farmer Restoration Program Act (HB3501) is introduced in the Assembly by Rep. Sonya M. Harper (D-6th) 

  • Provides that the Department of Agriculture shall establish the Black Farmer Restoration Fund to purchase farmland on the open market and grant it to eligible individuals
  • Establishes the Farm Conservation Corps to provide training in an on-field environment for socially disadvantaged residents
    • Provides residents between the ages of 18 and 29 from socially disadvantaged groups the academic, vocational, and social skills necessary to pursue long-term and productive careers in agriculture.

April 2021

State of New York Senate

  • Bill 6078A - sponsored by Michelle Hinchey (D-46th)
  • Proposed “New York Farmland Preservation Act” - Owner of ag assets may take a credit for the sale or rental of ag assets to a beginning farmer. 
  • Credit shall be equal to the greater of: 5% of sale price of ag asset, or 10% of gross rental income in each of the first, second, and third years of a rental agreement; or 15% of cash equivalent of the gross rental income in each of the first, second, and third years of the rental agreement.
  • In committee as of April 2022.