June 2023
- The Nebraska legislature voted to amend the qualifications to participate as a beginning farmer in the NextGen program.
- Starting in September, qualifying beginning farmers may now have a net worth of up to $750,000 (which will be adjusted for inflation), a substantial increase from the longstanding net worth cap of $200,000.
- Pensions and retirement savings will no longer factor into net worth qualifications for the NextGen program.
June 2023
- The Minnesota Legislature votes to extend the Beginning Farmer Tax Credit, which was set to sunset in 2023
- Along with the renewal of the program, amendments were added that changed the terms of land sales agreements
- Direct family members may now qualify for sales of land, as they did not previously. This does not apply to leases or sales of assets other than land.
- Sales of land now qualify for an 8% minimum tax credit, but sales of land to an emerging farmer may qualify for a tax credit up to 12% of the sale.
- The Beginning Farmer Tax Credit in Minnesota also now has its own online application administered by the Department of Agriculture.
- Farmers may also waive the Farm Business Management course requirement upon enrolling if they already have completed 30 hours of Farm Business Management courses.
May 2023
Washington State Conservation Commission received an extra $4M in state funding through SB5200 to administer the Farmland Protection and Land Access Program (FPLA).
June 2022
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.
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
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.