1.1 A bill for an act
1.2 relating to agriculture; expanding eligibility for beginning farmer tax credits;
1.3 amending Minnesota Statutes 2024, section 41B.0391, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 41B.0391, subdivision 1, is amended to read:
1.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.7the meanings given.
1.8 (b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
1.9machinery used for farming in Minnesota.
1.10 (c) "Beginning farmer" means an individual, a limited liability company owned by an
1.11individual, or a limited liability company owned by up to two individuals who are spouses
1.12or family members who:
1.13 (1) is a resident of Minnesota;
1.14 (2) is seeking entry, or has entered within the last ten years, into farming;
1.15 (3) intends to farm land located within the state borders of Minnesota;
1.16 (4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
1.17family member of the owner of the agricultural assets from whom the beginning farmer is
1.18seeking to purchase or rent agricultural assets;
1.19 (5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
1.20family member of a partner, member, shareholder, or trustee of the owner of agricultural
1Section 1.
S1428-1 1st EngrossmentSF1428 REVISOR BD
SENATE
STATE OF MINNESOTA
S.F. No. 1428NINETY-FOURTH SESSION
(SENATE AUTHORS: WEBER, Westrom, Putnam, Gustafson and Kupec)
OFFICIAL STATUSD-PGDATE
Introduction and first reading40002/17/2025
Referred to Agriculture, Veterans, Broadband, and Rural Development
Comm report: To pass as amended and re-refer to Taxes03/24/2025 2.1assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
2.2and
2.3 (6) meets the following eligibility requirements as determined by the authority:
2.4 (i) has a net worth that does not exceed the limit provided under section 41B.03,
2.5subdivision 3, paragraph (a), clause (2);
2.6 (ii) provides the majority of the day-to-day physical labor and management of the farm;
2.7 (iii) has, by the judgment of the authority, adequate farming experience or demonstrates
2.8knowledge in the type of farming for which the beginning farmer seeks assistance from the
2.9authority;
2.10 (iv) demonstrates to the authority a profit potential by submitting projected earnings
2.11statements;
2.12 (v) asserts to the satisfaction of the authority that farming will be a significant source
2.13of income for the beginning farmer;
2.14 (vi) is enrolled in or has completed within ten years of their first year of farming a
2.15financial management program approved by the authority or the commissioner of agriculture;
2.16 (vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
2.17requirements within the three-year certification period, in which case the beginning farmer
2.18is no longer eligible for credits under this section; and
2.19 (viii) has other qualifications as specified by the authority.
2.20The authority may waive the requirement in item (vi) if the participant requests a waiver
2.21and has a four-year degree in an agricultural program or related field, reasonable agricultural
2.22job-related experience, or certification as an adult farm management instructor.
2.23 (d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055,
2.24subdivision 1.
2.25 (e) "Family member" means a family member within the meaning of the Internal Revenue
2.26Code, section 267(c)(4).
2.27 (f) "Farm product" means plants and animals useful to humans and includes, but is not
2.28limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
2.29poultry and poultry products, livestock, fruits, and vegetables.
2.30 (g) "Farming" means the active use, management, and operation of real and personal
2.31property for the production of a farm product.
2Section 1.
S1428-1 1st EngrossmentSF1428 REVISOR BD 3.1 (h) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
3.2is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
3.3of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
3.417A.03, subdivision 7, or comparable entity that is engaged in the business of selling
3.5agricultural assets for profit and that is not engaged in farming as its primary business
3.6activity. An owner of agricultural assets approved and certified by the authority under
3.7subdivision 4 must notify the authority if the owner no longer meets the definition in this
3.8paragraph within the three year certification period and is then no longer eligible for credits
3.9under this section.
3.10 (i) "Resident" has the meaning given in section 290.01, subdivision 7.
3.11 (j) "Share rent agreement" means a rental agreement in which the principal consideration
3.12given to the owner of agricultural assets is a predetermined portion of the production of
3.13farm products produced from the rented agricultural assets and which provides for sharing
3.14production costs or risk of loss, or both.
3Section 1.
S1428-1 1st EngrossmentSF1428 REVISOR BD