| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to agriculture; expanding eligibility for beginning farmer tax credits; |
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| 3 | 3 | | 1.3 amending Minnesota Statutes 2024, section 41B.0391, subdivision 1. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 41B.0391, subdivision 1, is amended to read: |
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| 6 | 6 | | 1.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
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| 7 | 7 | | 1.7the meanings given. |
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| 8 | 8 | | 1.8 (b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and |
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| 9 | 9 | | 1.9machinery used for farming in Minnesota. |
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| 10 | 10 | | 1.10 (c) "Beginning farmer" means an individual or a limited liability company owned by an |
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| 11 | 11 | | 1.11individual who: |
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| 12 | 12 | | 1.12 (1) is a resident of Minnesota; |
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| 13 | 13 | | 1.13 (2) is seeking entry, or has entered within the last ten years, into farming; |
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| 14 | 14 | | 1.14 (3) intends to farm land located within the state borders of Minnesota; |
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| 15 | 15 | | 1.15 (4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a |
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| 16 | 16 | | 1.16family member of the owner of the agricultural assets from whom the beginning farmer is |
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| 17 | 17 | | 1.17seeking to purchase or rent agricultural assets; |
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| 18 | 18 | | 1.18 (5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a |
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| 19 | 19 | | 1.19family member of a partner, member, shareholder, or trustee of the owner of agricultural |
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| 20 | 20 | | 1.20assets from whom the beginning farmer is seeking to purchase or rent agricultural assets; |
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| 21 | 21 | | 1.21and |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | REVISOR BD/EE 25-0227701/23/25 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 1292 |
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| 29 | 29 | | NINETY-FOURTH SESSION |
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| 30 | 30 | | Authored by Huot and Anderson, P. H.,02/20/2025 |
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| 31 | 31 | | The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy 2.1 (6) meets the following eligibility requirements as determined by the authority: |
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| 32 | 32 | | 2.2 (i) has a net worth that does not exceed the limit provided under section 41B.03, |
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| 33 | 33 | | 2.3subdivision 3, paragraph (a), clause (2); |
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| 34 | 34 | | 2.4 (ii) provides the majority of the day-to-day physical labor and management of the farm; |
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| 35 | 35 | | 2.5 (iii) has, by the judgment of the authority, adequate farming experience or demonstrates |
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| 36 | 36 | | 2.6knowledge in the type of farming for which the beginning farmer seeks assistance from the |
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| 37 | 37 | | 2.7authority; |
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| 38 | 38 | | 2.8 (iv) demonstrates to the authority a profit potential by submitting projected earnings |
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| 39 | 39 | | 2.9statements; |
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| 40 | 40 | | 2.10 (v) asserts to the satisfaction of the authority that farming will be a significant source |
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| 41 | 41 | | 2.11of income for the beginning farmer; |
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| 42 | 42 | | 2.12 (vi) is enrolled in or has completed within ten years of their first year of farming a |
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| 43 | 43 | | 2.13financial management program approved by the authority or the commissioner of agriculture; |
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| 44 | 44 | | 2.14 (vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility |
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| 45 | 45 | | 2.15requirements within the three-year certification period, in which case the beginning farmer |
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| 46 | 46 | | 2.16is no longer eligible for credits under this section; and |
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| 47 | 47 | | 2.17 (viii) has other qualifications as specified by the authority. |
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| 48 | 48 | | 2.18The authority may waive the requirement in item (vi) if the participant requests a waiver |
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| 49 | 49 | | 2.19and has a four-year degree in an agricultural program or related field, reasonable agricultural |
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| 50 | 50 | | 2.20job-related experience, or certification as an adult farm management instructor. |
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| 51 | 51 | | 2.21 (d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055, |
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| 52 | 52 | | 2.22subdivision 1. |
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| 53 | 53 | | 2.23 (e) "Family member" means a family member within the meaning of the Internal Revenue |
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| 54 | 54 | | 2.24Code, section 267(c)(4). |
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| 55 | 55 | | 2.25 (f) "Farm product" means plants and animals useful to humans and includes, but is not |
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| 56 | 56 | | 2.26limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products, |
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| 57 | 57 | | 2.27poultry and poultry products, livestock, fruits, and vegetables. |
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| 58 | 58 | | 2.28 (g) "Farming" means the active use, management, and operation of real and personal |
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| 59 | 59 | | 2.29property for the production of a farm product. |
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| 60 | 60 | | 2.30 (h) "Limited liability company" means a family farm limited liability company as defined |
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| 61 | 61 | | 2.31in section 500.24, subdivision 2, paragraph (l), an authorized farm limited liability company |
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| 62 | 62 | | 2Section 1. |
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| 63 | 63 | | REVISOR BD/EE 25-0227701/23/25 3.1as defined in section 500.24, subdivision 2, paragraph (m), or other limited liability company |
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| 64 | 64 | | 3.2authorized to engage in farming and own, acquire, or otherwise obtain an interest in |
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| 65 | 65 | | 3.3agricultural land under section 500.24. |
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| 66 | 66 | | 3.4 (h) (i) "Owner of agricultural assets" means an individual, trust, or pass-through entity |
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| 67 | 67 | | 3.5that is the owner in fee of agricultural land or has legal title to any other agricultural asset. |
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| 68 | 68 | | 3.6Owner of agricultural assets does not mean an equipment dealer, livestock dealer defined |
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| 69 | 69 | | 3.7in section 17A.03, subdivision 7, or comparable entity that is engaged in the business of |
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| 70 | 70 | | 3.8selling agricultural assets for profit and that is not engaged in farming as its primary business |
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| 71 | 71 | | 3.9activity. An owner of agricultural assets approved and certified by the authority under |
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| 72 | 72 | | 3.10subdivision 4 must notify the authority if the owner no longer meets the definition in this |
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| 73 | 73 | | 3.11paragraph within the three year certification period and is then no longer eligible for credits |
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| 74 | 74 | | 3.12under this section. |
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| 75 | 75 | | 3.13 (i) (j) "Resident" has the meaning given in section 290.01, subdivision 7. |
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| 76 | 76 | | 3.14 (j) (k) "Share rent agreement" means a rental agreement in which the principal |
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| 77 | 77 | | 3.15consideration given to the owner of agricultural assets is a predetermined portion of the |
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| 78 | 78 | | 3.16production of farm products produced from the rented agricultural assets and which provides |
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| 79 | 79 | | 3.17for sharing production costs or risk of loss, or both. |
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| 80 | 80 | | 3Section 1. |
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| 81 | 81 | | REVISOR BD/EE 25-0227701/23/25 |
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