Entering production agriculture is hard. The capital requirements in the form of land and machinery can be daunting for beginning crop and livestock producers. To help overcome the obstacles and provide opportunities for persons wanting to enter production agriculture, the Nebraska Legislature in 1999 passed the Beginning Farmer Tax Credit Act.
The Act, now known as the NextGen program, has evolved over the years but the goal remains the same—to link landowners and beginning producers and provide access to land for beginning producers. Landowners participating in NextGen receive refundable income tax credits for leasing land to eligible beginning producers. Eligible beginning farmers and ranchers who participate must attend a financial management class and can receive a personal property tax exemption for 3 years. A $500 income tax credit helps offset the cost of the management class.
Julia Valliant and Marie O’Neill, researchers at the Indiana University Sustainable Food Science research group, as part of a study funded by the USDA to learn more about beginning farmer tax credit programs conducted a survey of participants in several states including Nebraska.
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Categories: Indiana, Crops, Equipment & Machinery, Livestock