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Ohio’s Beginning Farmer Tax Credit Program gaining momentum

Ohio State University Extension expects more farmers to take advantage of the state’s new Beginning Farmer Tax Credit.

OSU Agricultural & Resource Law Program Director Peggy Hall tells Brownfield this is the first tax season many farmers will benefit because of a needed certification program with the state to qualify.

“There are a number of requirements, certification being one of them, but you also have to be in farming for less than 10 years,” she says.  “You need to be a resident of Ohio. You need to have $800,000 or less of total net worth.”

Hall says the program helps level the playing field for beginning farmers who have limited assets.

“You want to make sure that you do follow the sequence correctly and line up that transfer, whether it’s a lease or a sale of assets, correctly in order to ensure that those tax credits are going to apply to that owner who is willing to enter into that relationship with you,” she encourages.

Ohio’s Beginning Farmer Tax Credit became official in 2023 and provides income tax benefits for both a beginning farmer and someone who transfers farm assets to them. 

Hall says $10 million is available until the end of 2027 for participants from the state.