House approves Manchester’s farmer tax credit bill

COLUMBUS — State Rep. Susan Manchester (R-Waynesfield) Tuesday announced the Ohio House has approved House Bill 95, her bipartisan legislation that creates a beginner farmer tax credit to assist one generation of farmers to the next.

The bill allows income tax credits for established farmers as they sell or rent their agricultural assets to beginning farmers who take a qualified financial management course. Agriculture assets include farmland, livestock, buildings, and equipment.

During her floor speech, Manchester noted that the average age of the U.S. farmer is 58.

“By decreasing their tax burden, House Bill 95 incentivizes retiring farmers to recruit beginning farmers to take over their operations,” said Manchester. “This program also sets beginning farmers up for success by giving them an opportunity to learn more about the financial management of a farm operation.”

Under the bill, the credit is limited to five years and allows up to $10 million for the total amount of tax credits awarded over those five years.

A similar program was implemented in Minnesota in 2018, which has already enabled 162 established farmers to sell or rent land to beginning farmers and allocated $1.4 million in tax credits.

H.B. 95 passed the House Agriculture and Rural Development Committee with a unanimous vote and is also supported by the Ohio Farm Bureau, Ohio Ecological Food and Farm Association, Ohio Corn & Wheat Growers Association, and Ohio Soybean Association.

The measure now awaits further consideration in the Ohio Senate.

Manchester
https://www.dailyadvocate.com/wp-content/uploads/2021/08/web1_Susan-Manchester-MUG-7.jpgManchester

Staff report