Beginning Farmer Tax Credit

About this funding opportunity

Beginning Farmer Tax Credit May 27, 2026 FUNDING UPDATE:

The Minnesota State Legislature has temporarily removed the funding cap for the Beginning Farmer Tax Credit for 2026 transactions only. This means all eligible asset owner applications that are complete and submitted by the deadlines below can be approved for 2026.

If you have already applied, we will contact you in the coming weeks to confirm. You may submit new 2026 applications by the deadlines below.

Remember, a complete application includes: an asset owner application, a beginning farmer application, and an up-to-date lease/sale documentation that includes the price, dates/term, names/signatures of parties involved, description of the asset, and other relevant information for the transaction. Tax Credit Overview

The Minnesota Beginning Farmer Tax Credit provides state tax credits to landlords and sellers (asset owners) who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers in the current tax year. Funding is limited. Tax credits are funded in a first-come, first-served manner regardless of the deadlines below. Applicants are highly encouraged to apply early in the year and may apply before sales close if needed.

This is a two-part application. Both beginning farmers and asset owners must submit applications with leases and/or sale documents to hold their place in line for first-come, first-served funding. Applications open annually in early January. More instructions are available in the applications found in the "Apply Here" box on this page. 2026 Zoom Info Session

On Monday, December 22 the MDA hosted an informational webinar to provide a program overview, updates, and answer questions about the Beginning Farmer Tax Credit. A recording of the webinar can be found on the MDA's YouTube page, here"). Tax Credit Details

The tax credit will go to the asset owner (landlord/seller) for leases and sales taking place in the current tax year as follows. Tax credits are funded in a first-come, first-served manner regardless of the deadlines below.

Tax Credit Amount Maximum Tax Credit Application Due Date

Cash Lease 10% of annual rental income $7,000 July 17, 2026 Share Rent Lease 15% of annual rental income $10,000 July 17, 2026 Sales 8 or 12% of sale price\\ $50,000 Nov. 1, 2026 Beginning Farmer FBM tuition reimbursement Equal to tuition paid (see details below) $1,500 Nov. 1, 2026

In each given tax year, the asset owner can claim credits in either a rental or a sale with each eligiblebeginning farmer. We will mail tax credit certificates and filing instructions by the end of January each year. Am I eligible? Beginning farmer must Be a Minnesota resident who is seeking entry, or has entered into farming within the last 10 years. Be renting/buying as an individual ( not an LLC or other business entity) Provide the majority of labor and management on a farm that is located in Minnesota. Have some farming experience and knowledge Provide positive projected earnings Have a net worth that does not exceed the limit provided under section 41B.03, subdivision 3, paragraph (a), clause (2). This limit is $1,069,000 in 2026. Be enrolled in or have completed an approved farm business management program within ten years of their first year of farming (more details below). Asset owners May be an individual, trust, LLC, partnership, S-Corp, or other qualified pass-through entity. May claim the tax credit for as many years as the beginning farmer(s) they work with are eligible. Cannot be an equipment dealer, livestock dealer, or comparable entity engaged in the business of selling agricultural assets for profit. Except for farmland sales, cannot be directly related to the owner of the agricultural asset. This includes parents, grandparents, brothers, sisters, spouses, children, and grandchildren of the beginning farmer and their spouse. \\Land sales only Parents, grandparents, and siblings are eligible for the tax credit if they sell…

Topic areas: Agriculture and Food, Public Policy and Governance, Workforce Development.

Funding amount

This other provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Beginning Farmer Tax Credit is administered by Minnesota Department of Agriculture (MDA), listed via Minnesota Department of Agriculture.