SF 255

as introduced - 91st Legislature (2019 - 2020) Posted on 08/29/2019 11:15am

A bill for an act
relating to agriculture; modifying eligibility for beginning farmer tax credits;
amending Minnesota Statutes 2018, section 41B.0391, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 41B.0391, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.

(c) "Beginning farmer" means an individual who:

(1) is a resident of Minnesota;

(2) is seeking entry, or has entered within the last ten years, into farming;

(3) intends to farm land located within the state borders of Minnesota; new text begin and
new text end

deleted text begin (4) is not and whose spouse is not a family member of the owner of the agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
deleted text end

deleted text begin (5) is not and whose spouse is not a family member of a partner, member, shareholder,
or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
purchase or rent agricultural assets; and
deleted text end

deleted text begin (6) deleted text end new text begin (4) new text end meets the following eligibility requirements as determined by the authority:

(i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);

(ii) provides the majority of the day-to-day physical labor and management of the farm;

(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;

deleted text begin (iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;
deleted text end

deleted text begin (v) deleted text end new text begin (iv) new text end asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

deleted text begin (vi) deleted text end deleted text begin participates in deleted text end new text begin (v) is enrolled in or has completed within ten years of the farmer's
first year of farming new text end a financial management program approved by the authority or the
commissioner of agriculture;

deleted text begin (vii) deleted text end new text begin (vi) new text end agrees to notify the authority if the beginning farmer no longer meets the
eligibility requirements within the three-year certification period, in which case the beginning
farmer is no longer eligible for credits under this section; and

deleted text begin (viii) deleted text end new text begin (vii) new text end has other qualifications as specified by the authority.

new text begin The commissioner may waive the requirement in item (v) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.
new text end

deleted text begin (d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end "Farm product" means plants and animals useful to humans and includes, but is
not limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.

deleted text begin (f) deleted text end new text begin (e) new text end "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

deleted text begin (g) deleted text end new text begin (f) new text end "Owner of agricultural assets" means an individual, trust, or pass-through entity
that is the owner in fee of agricultural land or has legal title to any other agricultural asset.
Owner of agricultural assets does not mean an equipment dealer, livestock dealer defined
in section 17A.03, subdivision 7, or comparable entity that is engaged in the business of
selling agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.

deleted text begin (h) deleted text end new text begin (g) new text end "Resident" has the meaning given in section 290.01, subdivision 7.

deleted text begin (i) deleted text end new text begin (h) new text end "Share rent agreement" means a rental agreement in which the principal
consideration given to the owner of agricultural assets is a predetermined portion of the
production of farm products produced from the rented agricultural assets and which provides
for sharing production costs or risk of loss, or both.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end