Ag tax credit bill signed by governor

A bill that would assist beginning farmers in Ohio with a tax credit was signed into law last week by Gov. Mike DeWine.
House Bill 95 received strong bi-partisan support while pending in the legislature and will “assist one generation of farmers to the next,” says Representative Susan Manchester, R- Waynesfield, a co-sponsor of the bill.
The bill allows an income tax credit for established farmers when they sell or rent agricultural assets to beginning farmers who complete a qualified financial management course. The assets include farmland, livestock, buildings or equipment.
It also requires the Ohio Department of Agriculture, and permits land grant state universities, to certify persons as beginning farmers and offers a tax credit for those farmers to attend an agricultural financial management program.
“Agriculture is the backbone of Ohio’s economy and with the average age of Ohio farmers at 58-years-old, we must do something to get the next generation to look at farming as a career choice,” Rep. Manchester said. “This legislation not only gives existing farmers a financial reason to pass on their trade, but also keep agriculture strong in the state.”
Under the bill, the credit is limited to five years and allows up to $10 million for the total amount of tax credits awarded for the life of the program.
“Creating a pathway to assistance for these beginning farmers gives them a strong start in an industry that requires significant financial resources. The National Young Farmers Coalition found through a 2017 survey that land access is the number one challenge faced by young farmers and ranchers. Increasing costs of land and competition due to increasing development across Ohio, create prohibitive costs for many young farmers,” Rep. Mary Lightbody, a co-sponsor of the bill, said in her testimony to the Senate Ways and Means Committee.
The bill has drawn support from the Ohio Cattlemen’s Association, Ohio Pork Council, Ohio Dairy Producers Association, Ohio Poultry Association, Ohio Sheep Improvement Association, Ohio Agribusiness Association, Ohio Farm Bureau Federation, Farmer Credit Services of Mid-America, Nationwide and AgCredit.