By DOUG GRAVES

Ohio Correspondent

COLUMBUS, Ohio — A new bill was introduced in Ohio earlier this month that would give incentives to new and established farmers alike.

House Bill 183, unveiled by Reps. Susan Manchester (R-District 84) and John Patterson (D-District 99), would allow income tax credits for established farmers who sell or rent their agriculture assets to beginning farmers. The credits would apply to land sold, leased, or otherwise used in a share-rental agreement with a beginning farmer.

An estimated 100 million acres of land now used to grow food is expected to be up for grabs in coming years as the current generation of farmers in the United States retires. This bill is seen as a win-win for all involved in Ohio. A similar bill (Senate Bill 478) was introduced March 26 in Pennsylvania.

“Beginning farmers face competition for this land from developers, larger corporate farmers, investment companies, and the fossil fuel industry,” said Amalie Lipstreu, policy director at the Ohio Ecological Food and Farm Assoc. (OEFFA).

“It certainly is in our national security to ensure that we’ve got some land in agriculture and some folks that are really interested and able to grow food for our population.”

Lipstreu called the bill a good step for Ohio to ensure that it is supporting generations, and said major farming organizations are on board.

“Both the Ohio Farm Bureau Federation as well as the Ohio Farmers Union have this on their policy platform for 2019,” she said. “So there’s unanimity in the farm community about the importance of taking this kind of step to make sure that we’ve got that land in production for the next generation.”

According to Matt McDevitt, agricultural finance supervisor at the Minnesota Department of Agriculture, Ohio’s new legislation is patterned after a similar bill in his state in 2018. Since then, he said 446 established farmers have received $2.3 million in tax credits, and 386 beginning farmers have participated in the program, receiving $375,000 in educational tax credits.

“Established farmers and ag producers would receive a state income tax credit when they sell or rent agricultural assets like land, machinery, building facilities, or livestock to a beginning farmer,” said Jenna Beadle, director of state policy for the Ohio Farm Bureau Federation. “The credit is equivalent to 5 percent of the sale price, 10 percent of the cash rent, or 15 percent for a cash share deal.

“Beginning farmers could also receive a tax credit up to $1,500 for taking a qualified financial management course, but do not receive tax credits for buying land or other farm-related items.”

A beginning farmer in Ohio is defined as a resident who has been farming for fewer than 10 years with a net worth of less than $800,000, and they cannot be a relative of the established farmer. An agriculture asset is defined as agricultural land, livestock, facilities, or equipment.

The program will likely have a proposed $10 million cap over five years, at which time it can be renewed if it has been successful. The Ohio Department of Agriculture would determine the eligibility of candidates and the organizational framework for the program. The young farmer candidates must provide the majority of labor on the farm.

“Farming is a very financially challenging occupation to get into, and the number of farm families has shrunk over the years,” Patterson said. “We celebrate opportunities for our young people to go into farming.”

“There is a need to help the next generation of farmers get started in a very capital-intensive industry,” Manchester added. “It will set beginning farmers up for success by giving them the opportunity to farm and learn best practices through a financial management program.”

According to the 2017 U.S. Census of Agriculture, the average age of a U.S. farmer is 58, and more than 31 percent of principal farm operators were 65 or older.