Bill authorizes tax credits to help beginning farmers

Staff Writer

By a vote of 96 to 1, the Ohio House of Representatives passed House Bill 95, which could benefit the next generation of Ohio farmers.
HB 95, the Family Farm ReGeneration Act, will authorize tax credits for those who sell or rent farmland, livestock, buildings, or equipment to beginning farmers.
It also provides a credit for beginning farmers who attend a financial management program.
“Young farmers in Ohio are taking on the risks inherent in farming and working hard to build successful farm businesses. They are also facing significant obstacles that require creative policy solutions. Access to — and secure tenure on — affordable, high quality farmland is the number one challenge young farmers are facing,” said Ohio Ecological Food and Farm Association Policy Director Amalie Lipstreu. “At the same time, millions of acres of farmland are changing hands as older farmers consider retirement and sale of their land. House Bill 95 provides an important bridge between landowners and those seeking land.”
Representative Susan Manchester, (R – Waynesfield) said lowering the tax burden on growers contemplating retirement is a vital part of the bill.
“By decreasing their tax burden, House Bill 95 incentivizes retiring farmers to recruit beginning farmers to take over their operations. 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,” said Manchester. “I’m proud to represent a strong agricultural community and help the next generation of farmers get started in a very capital intensive industry.”
Manchester and Representative Mary Lightbody (D- Westerville) sponsored the legislation in the House.
In her testimony on the bill, Rep. Lightbody said sustainable farmers represent the future of agriculture, but they often face difficulties having to patch together a farm from many different parcels of land across multiple counties.
“I’ve seen this scenario played out firsthand in my own district, where retiring farmers without family successors are looking for someone to take over their operation, but face tough financial barriers when selling their land or assets. This program would incentivize retiring farmers to look to beginning farmers to take over their operations by decreasing their tax burden. It would also set beginning farmers up for success by giving them an opportunity to learn more about the financial management of a farm operation,” she said.
The fall-out from the pandemic and shutdown of segments of the economy revealed the need for a viable transition of agricultural resources to future growers, Lipstreu said.
“The past year illustrated, in stark terms, the vulnerability of our food system. We must take the steps necessary to ensure that those interested in providing what is a paramount service to society — contributing to our food supply — are successful,” she said. “OEFFA congratulates the House of Representatives for the foresight in passing this important bill. We call upon the Senate to act by introducing and passing a companion bill in the coming weeks so that this bill is ready for the Governor’s signature before the summer recess.”


The Press

The Press
1550 Woodville Road
Millbury, OH 43447

(419) 836-2221

Email Us

Facebook Twitter

Ohio News Media Association