Beginning Farmer and Farm Asset Owner Credit -
Available for 2011
Two new credits will be available for taxable years beginning in 2011. These are the beginning farmer credit and the farm asset owner credit. Both credits require that the claimants be certified as eligible for the credit by the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). Credits can first be claimed on the 2011 Wisconsin income tax return, Form 1.
Beginning Farmer Credit
"Beginning farmer" means a person who, at the time that the person submits an application to DATCP, (1) has a net worth of less than $200,000, (2) has farmed for fewer than ten years out of the preceding 15 years, (3) has entered into a lease for a term of at least three years with an established farmer for the use of the established farmer's agricultural assets, and (4) uses the leased agricultural assets in farming.
The credit is equal to the amount paid by the beginning farmer to enroll in a financial management program. The maximum credit is $500 and the credit is available on a one-time basis.
"Financial management program" means a course in farm financial management that is offered by the Wisconsin Technical College System, the University of Wisconsin-Extension, the University of Wisconsin-Madison, or any other institution that is approved by DATCP.
Farm Asset Owner Credit
"Established farmer" means a person who, at the time that the person submits an application to DATCP, (1) has engaged in farming for a total of at least ten years, (2) owns agricultural assets (machinery, equipment, facilities, or livestock that is used in farming), and (3) has entered into a lease for a term of at least three years with a beginning farmer for the use of the agricultural assets by the beginning farmer.
The credit is equal to 15 percent of the lease amount received by the established farmer. The established farmer may only claim the credit for the first three years of any lease of the agricultural assets to a beginning farmer.
Information on Certification
Both the beginning farmer and the established farmer must be certified by DATCP as eligible for the credit. You may contact DATCP at:
- Telephone: (800) 942-2474
- Internet: http://datcp.wi.gov/
- Write to: Department of Agriculture, Trade, and Consumer Protection
PO Box 8911
Madison, WI 53708-8911
Last updated January 12, 2011