Bill > SB682

This bill modifies Missouri's income tax provisions to create incentives for supporting beginning farmers by allowing farm owners to subtract certain income and capital gains from their state taxes when selling, leasing, or entering crop-share arrangements with beginning farmers. Specifically, the bill defines a "beginning farmer" as someone who has filed limited farm profit/loss forms, been approved for a USDA beginning farmer loan, operates a new agricultural production, or is a qualified family member. Farm owners who sell farmland to beginning farmers can subtract up to 100% of the first $2 million in capital gains, with decreasing percentages for subsequent million-dollar increments. Similarly, farm owners who lease land to or enter crop-share arrangements with beginning farmers can subtract up to $25,000 per year in rental or crop-share income. The bill requires the Department of Agriculture to verify beginning farmer status and the Department of Revenue to create an annual report tracking the financial impact of these tax deductions. This legislation aims to support agricultural succession and help new farmers enter the farming profession by providing tax incentives to established farmers willing to transfer land or opportunities to the next generation.

Agriculture and Natural Resources

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=4195170