Washington State Housing Finance Commission Board creates the Farmland Protection and Afforadability Investment Program (FarmPAI)
- The Housing Finance Commission (WSHFC) and Washington State Conservation Commission (WSCC) worked with Washington Association of Land Trusts, Washington Farmland Trust, American Farmland Trust, Forterra, and Northwest Farm Credit Services to design and launch the new program.
- $7 million has been approved for the program
- Farmers can identify farmland to be purchased by a land trust while the farmer assembles the financing to purchase the land from the land trust.
- The farmer must sell their development rights on the land to a land trust, which then sells the development rights repay for FarmPAI.
- Land trusts can also identify land to be preserved, place a permanent agricultural easement on it, then the trust can sell the land to a BIPOC or beginning farmer at a more affordable price.
- Appreciation of land or development rights while held by Trust is split evenly between WSHFC and Trust. WSHFC proceeds are returned to the fund.
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 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
Beginning Farmer Tax Credit in Ohio: HB 95
Ohio Senate Ways and Means Committee (testimonials)
March 2022Minnesota House Committee on Agricultural Policy passes HF 3713 allowing individually owned LLC's to qualify for Minnesota's Beginning Farmer Tax Credit (BFTC).
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
- Owners and BFRs most often live in southwestern Minnesota
Ohio: HB 95 passes the Ohio House, establishing a Beginning Farmer Tax Credit
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
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.
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.