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MDA looking to improve Beginning Farmer Tax Credit

The Minnesota Department of Agriculture is looking at ways to improve the Beginning Farmer Tax Credit. 

The Minnesota Legislature passed the Tax Credit in 2017 to incentivize the sale or rental of farmland or assets to beginning farmers.

Minnesota Department of Ag Commissioner Thom Petersen tells Brownfield there’s room to grow the program.

“We might be able to increase it. Right now it’s 5 percent on sales (and) we’re looking at maybe going to 10 percent. We’re trying to see if we have the dollars to do that.”

He says the Department would also like to extend transfers to immediate family.

“Right now you can’t transfer to a mother, father, grandfather, grandmother, so we’re looking at if there’s a way to do that.”

Petersen says there might be some other tweaks that could also generate more interest in the Beginning Farmers Tax Credit.

Brownfield interviewed Commissioner Petersen at the Upper Midwest Farmland Summit in Red Wing Monday.