Gov. Heineman Promotes New Opportunities of Nebraska’s Beginning Farmer Program

(Grand Island, Neb.) Gov. Dave Heineman today invited Nebraskans getting started in farming or ranching to take advantage of the state’s expanded Beginning Farmer program, which includes a new agricultural personal property tax exemption.

“We are excited about the opportunities these programs offer for our agricultural community,” Gov. Heineman said. “Nebraska is rooted in agriculture and this industry plays a significant role in our state’s continued growth. Encouraging the establishment of the next generation of farmers and ranchers will help Nebraska maintain its position as a leading agricultural state and help grow our state’s economy.”

Updates to the Beginning Farmer Tax Credit Act and the creation of the personal property tax exemption were part of Legislative Bill 1027, signed by the Governor in April. The bill was sponsored by Sen. Phil Erdman of Bayard and included proposals introduced by Sen. Tony Fulton of Lincoln. The Nebraska Department of Agriculture (NDA) administers the Beginning Farmer program and will coordinate with the Nebraska Department of Revenue on the new property tax exemption.

Agriculture Director Greg Ibach said, “LB 1027 removes several eligibility restrictions within the Beginning Farmer Tax Credit program. These changes will significantly broaden the pool of individuals that are eligible to help out a beginning farmer or rancher.”

The new agricultural property tax exemption allows qualified beginning farmers to claim an exemption on up to $100,000 of personal property used in production agriculture. The exemption can be claimed for three years.

Participation in either program begins at NDA with an application to either qualify as a beginning farmer or rancher, or to qualify as an agricultural asset owner to receive the tax credit. To claim an agricultural personal property tax exemption for the 2009 tax year, individuals must contact NDA before Nov. 1, 2008. Signup for the Beginning Farmer Tax Credit Program is continuous.

To apply for the Beginning Farmer program or get more information, contact the Nebraska Department of Agriculture by calling (800) 753-9396 or by visiting http://www.agr.ne.gov.