Eligible parties are encouraged to apply early for funding



department of agriculture


*For Immediate Release*




*Media Contact: *Allen Sommerfeld

651-201-6185

[email protected]




December 11, 2025

Previous Announcements [ [link removed] ]





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Applications Open Jan. 1 for MDA 2026 Beginning Farmer Tax Credit

Eligible parties are encouraged to apply early for funding

*St. Paul, MN*: The Minnesota Department of Agriculture’s (MDA) Rural Finance Authority (RFA) will start accepting applications for the 2026 Beginning Farmer Tax Credit on January 1. This is an annual program available to landlords and sellers (asset owners) who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers.

There is $4 million available for the program. The credits are funded in a first-come, first-served manner, so applicants are highly encouraged to apply early before the stated deadlines. Funds ran out in late January for the 2025 tax credit.

Both asset owners and beginning farmers must submit applications with lease and/or sale documents to be eligible for funding and to hold their place in line. They may apply before sales close with a valid purchase agreement, if needed.

Asset owners can claim credits in one of the following categories in a given tax year for each* *beginning farmer they lease/sell to:

 



*Tax Credit Amount*



*Maximum Tax Credit*



*Application Due Date*



*Cash Rentals*



10% of annual rental income



$7,000



July 17, 2026



*Share Rentals*



15% of annual rental income



$10,000



July 17, 2026



*Sales*



8% of sale price (12% if the buyer is a Limited Land Access Farmer)



$50,000



November 1, 2026



*Beginning Farmer Farm Business Management Tuition Reimbursement*



Equal to tuition paid out of pocket



$1,500 for 3 years



November 1, 2026



 

Qualifying asset owners can include individuals, trusts, or qualified pass-through entities renting or selling land, livestock, facilities, buildings, or machinery used for farming in Minnesota to a beginning farmer. Parents, grandparents, and siblings are eligible for the tax credit if they sell farmland to a direct family member. However, this does not apply to leases or non-land sales (e.g., livestock, equipment).

A beginning farmer is defined as a Minnesota resident with the desire to start farming or who began farming within the past 10 years. They must provide positive projected earnings statements, have a net worth less than $1,042,000, and enroll in or have completed an approved Farm Business Management (FBM) program [ [link removed] ].

Beginning farmers are also eligible for a nonrefundable Minnesota tax credit equal to the amount paid for FBM tuition, up to a maximum of $1,500. This tax credit is available for up to three years.

New for 2026: “Limited Land Access Farmer” replaces “Emerging Farmer” in the program. To qualify for the 12% rate for a sale, the Limited Land Access Farmer must meet *all* the following:


* Does *not *own any farmland.
* Does *not* rent land from a relative. This includes anyone related to the Limited Land Access Farmer by blood or marriage (ex. parent, in-law, grandparent, aunt/uncle, great-aunt/uncle, sibling, stepsibling, cousin, second cousin, etc.).
* Does *not* have a lease term greater than three years.

The MDA will be hosting an informational webinar on Monday, December 22 from 4-5 p.m. to answer questions about the Beginning Farmer Tax Credit.

Informational webinar details

Monday, December 22 4-5 p.m.
Register in advance at [link removed] [ [link removed] ]
After registering, you will receive a confirmation email containing information about joining the meeting.

Full eligibility requirements and other materials can be found on the Beginning Farmer Tax Credit webpage [ [link removed] ]. [ [link removed] ]Questions may be directed to Jenny Heck at [email protected] or 651-201-6316.

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