November is right around the corner and, with it, the deadline for applications for the Beginning Farmer Tax Credit.
The Nebraska Department of Agriculture’s NextGen program offers the tax credit to help new producers get a head start in farming and ranching, while giving back to those who own agricultural assets.
Nathan Beacom, policy associate for the Center for Rural Affairs, said the program has important benefits for both new farmers and landowners.
“For the farmer, the program ensures a minimum three-year lease, which provides the stability for individuals seeking to get their feet under them,” Beacom said. “The farmer also qualifies for personal property tax exemption, meaning that property used in production, up to $100,000, is exempt from state personal property taxes.”
An additional reimbursement is available for the farmer to pursue financial management education.
For the landowner, the benefit includes a refundable tax credit equal to 10% of the cash rent or 15% of the value of the share-crop rent received.
“This program is a great opportunity for a landowner looking to transition to a younger farmer and to ensure their land remains in responsible production,” Beacom said. “For the new farmer, this benefit means more opportunity to rent land, to develop a relationship with a landowner, and to build a foundation for a long-term operation.”
Applications are due by Nov. 1. Visit nextgen.nebraska.gov for more information or to fill out an application.