State Rep. Susan Manchester (R-Waynesfield) announced that the General Assembly had approved House Bill 95, her bipartisan legislation that creates a tax credit for beginning farmers to help a generation of farmers to the next.
The legislation will also allow an income tax credit for established farmers who sell or lease their farm assets to beginning farmers who take a qualified course in financial management. Farm assets include farmland, livestock, buildings or equipment.
“Farming is the backbone of Ohio’s economy and with the average age of Ohio farmers at 58, we need to do something to get the next generation to see farming as a career choice,” Manchester said. “This legislation not only gives existing farmers a financial reason to pass on their business, but also keeps agriculture strong in the state.”
Under the bill, the credit is limited to five years and allows up to $10 million for the total amount of tax credits granted for the duration of the program.
“By reducing their tax burden, House Bill 95 incentivizes retired farmers to recruit entry-level farmers to take over their businesses,” Manchester said. “This program also prepares beginning farmers for success by giving them the opportunity to learn more about the financial management of a farm business.
The legislation is supported by the Ohio Farm Bureau, Ohio Cattlemen’s Association, Ohio Pork Council, Ohio Dairy Producers Association, Ohio Poultry Association, Ohio Sheep Improvement Association, Ohio AgriBusiness Association, Farm Credit Services of Mid-America, Nationwide and AgCredit.
House Bill 95 will now head to the governor’s office to be signed into law.