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Bill > A2311


NJ A2311

NJ A2311
Exempts from realty transfer fee recording of deed of preserved farmland to qualified beginning farmer.


summary

Introduced
02/07/2022
In Committee
02/07/2022
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill provides that preserved farmland purchased by a qualified beginning farmer would not be subject to the realty transfer fee. Under this bill, the fee would not apply when preserved farmland is acquired by a person who possesses a written certification issued by the Department of Agriculture pursuant to the bill demonstrating that the person qualifies as a qualified beginning farmer. The bill requires the Department of Agriculture to establish a procedure to certify in writing a person as a qualified beginning farmer. The realty transfer fee (fee), established pursuant to P.L.1968, c.49 (C.46:15-5 et seq.), applies to sales and transfers of interests in real property and is imposed upon the recording of deeds evidencing transfers of title to real property in the State. Current law provides a number of full and partial exemptions from the payment of the fee. This bill is similar to a provision contained in the Pennsylvania Farm Bill. The Pennsylvania Department of Agriculture has established a certification process for qualified beginning farmers. A person who receives this certification is exempt from the realty transfer fee when purchasing a preserved farm. New Jersey has long committed to preserving farmland, however New Jersey cannot rest on the success of land preservation. The State needs to do much more to preserve farming itself and take further action to preserve its farmers as well. This bill is intended to remove a disincentive for people to take up the vital and historic role of farmer. Currently, the average age of a farmer in the United States is 57.5 years. The national average age has increased by 1.6 percent annually since 1994, on average, according to the 2017 Census of Agriculture conducted by the United States Department of Agriculture. The average age of a New Jersey farmer is 59.7 years, according to the same report.

AI Summary

This bill exempts from the realty transfer fee the recording of a deed when preserved farmland is conveyed to a person who qualifies as a "beginning farmer." The Department of Agriculture is required to establish a process to certify in writing that a person meets the criteria to be considered a beginning farmer, which includes those who have never farmed before or have farmed for 10 years or less. This bill aims to remove a potential disincentive for people to pursue farming, as the average age of farmers in New Jersey and the United States continues to rise.

Committee Categories

Agriculture and Natural Resources

Sponsors (1)

Last Action

Introduced, Referred to Assembly Agriculture and Food Security Committee (on 02/07/2022)

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