New Ohio Beginning Farmer Tax Credit Gives Farmers a Break

In partnership with: Ohio Department of Agriculture

“The new Ohio Beginning Farmer Tax Credit program is more than just a tax credit. It is a farmland preservation tool,” says Evan Callicoat, state policy director for the Ohio Farm Bureau Federation.

Despite its name, the credit benefits both beginning and experienced farmers. Eligible new farmers, which include farmers with 10 years or less experience, must complete an eligible financial management program from organizations such as an Ohio higher education institution or a Farm Service Agency.

Then, the beginning farmers and veteran farmers who sell or rent land, livestock, equipment, or other agricultural resources receive tax credits of 3.99% on the investment amount.

“People think of farming as a lifestyle, but first and foremost, it’s a business and should be treated as such,” says Sarah Huffman, executive director of the Ohio Department of Agriculture Farmland Preservation Office. “The program helps give beginning farmers the financial knowledge foundation they need to be successful. In turn, established farmers have increased confidence and incentive to invest in those beginning farmers.”

Not only is farming a career but it can often be expensive and involves much outside risk.

See more: Ohio Young Farmers Started Farming From Scratch

“Farming is more than just a way of life,” Huffman says. “Good farm management practices are essential for any farmer to remain
productive. Financial planning is as much a sustainability practice as any other plan farmers put in place.”

However, long-term success is nearly as dependent on establishing partnerships and relationships as it is on a foundation of financial knowledge.

“Farming is an industry that can be difficult to break into without a previous connection to it,” Callicoat says.

He advises the tax credit helps establish such partnerships between beginning and established farmers – but relationship building shouldn’t end there.

“Relationships with not only fellow farmers but also local ag lending agents – from Farm Credit, AgCredit, or another local institution – are invaluable for farmers to make the best decisions for their operations,” Callicoat says.

See more: Ohio Agriculture

Huffman notes that transactions made in the same calendar year as the certifying course, even if the transaction is completed before receiving certification, qualify both farmers involved in the transaction to receive the tax credit.

“Agriculture is one of the most capital-intensive industries out there,” Callicoat says. “Sound financial planning should always be top of mind for any farmer.”

To learn more about qualifying criteria, eligible courses, and the application process, visit the Beginning Farmer Tax Credit website at agri.ohio.gov/programs/farmland-preservation-office/beginning-farmer-tax-credit-program/beginning-farmer-tax-credit.