2026 Beginning Farmer Tax Credit: A Quick Overview for Minnesota Landowners

Minnesota’s Beginning Farmer Tax Credit opens again on January 1, 2026, and it continues to be a great opportunity for landowners who plan to sell or rent farmland to a qualified beginning farmer. The program offers a direct state tax credit to the asset owner, which can be especially helpful when planning a family transition or structuring a sale in 2026.

Beyond the tax benefit, this program also helps beginning farmers get their start by improving access to land. Because the credit makes working with a beginning farmer more appealing, it can encourage landowners to lease or sell to the next generation. According to the Minnesota Department of Agriculture, funding is limited and approved on a first-come, first-served basis—so getting prepared early is important.

Every landowner’s tax situation is different, so be sure to connect with your accountant as you consider whether this program is a good fit. You can also visit the Minnesota Department of Agriculture for full program details and requirements.

How Do Landowners Benefit?

• Cash Rent: 10% of annual rent (up to tax credit maximum of $7,000)
• Share Rent: 15% of annual rent (up to tax credit maximum of $10,000)
• Land Sales: 8% of the sale price—or 12% if the buyer is a Limited Land Access Farmer (up to tax credit maximum of $50,000)

Family sales can also qualify when selling farmland to a parent, grandparent, or sibling—something many families appreciate when working through a generational transfer.

Why This Matters

If you’re planning a 2026 sale or rental transition, this credit can lighten your Minnesota tax burden while helping the next generation step into farming. It’s one of those rare programs that truly benefits both sides of the transaction: landowners receive meaningful tax savings, and beginning farmers gain more opportunities to access land.

Learn More

We’ve linked the Minnesota Department of Agriculture articles below for full eligibility, requirements, and application information: Beginning Farmer Tax Credit | Minnesota Department of Agriculture

If you have questions about how this might apply to your farm, we’re happy to talk through it with you. We can help outline the program requirements, and your accountant can advise on how the credit may fit your specific tax situation.