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Tax Incentives for Supporting Beginning Farmers

This act introduces new tax benefits for individuals who sell or lease farmland to beginning farmers. The goal is to encourage the transfer of land to new generations of farmers, reducing their costs and supporting agricultural development. Citizens selling or leasing farmland can benefit from lower taxes if they meet specific conditions.
Key points
Sellers of qualifying farmland to beginning farmers can exclude 40% of the gain from their gross income, up to a limit of $1,500,000 annually.
Individuals leasing qualifying farmland to beginning farmers can exclude rental income from their gross income, up to a limit of $25,000 annually, for leases up to 10 years.
A 'beginning farmer' is a U.S. citizen who meets criteria such as having 1-10 years of farming experience, an approved beginner farmer loan, substantial farming knowledge, or being related to the land owner.
The farmland must have been used for farming purposes and owned by the seller/lessor or their family for at least 5 out of the last 8 years.
If farmland sold with a tax exclusion ceases to be used for farming within 5 years, a portion of the tax benefit received will be recaptured.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6836
Sponsor: Rep. Alford, Mark [R-MO-4]
Process start date: 2025-12-18
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Beginning Farmer Tax Incentive Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6836.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-12-18.

What are the main provisions?

Key points include:

  • Sellers of qualifying farmland to beginning farmers can exclude 40% of the gain from their gross income, up to a limit of $1,500,000 annually.
  • Individuals leasing qualifying farmland to beginning farmers can exclude rental income from their gross income, up to a limit of $25,000 annually, for leases up to 10 years.
  • A 'beginning farmer' is a U.S. citizen who meets criteria such as having 1-10 years of farming experience, an approved beginner farmer loan, substantial farming knowledge, or being related to the land owner.
  • The farmland must have been used for farming purposes and owned by the seller/lessor or their family for at least 5 out of the last 8 years.
  • If farmland sold with a tax exclusion ceases to be used for farming within 5 years, a portion of the tax benefit received will be recaptured.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Alford, Mark [R-MO-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-19.

CATEGORIES

Taxes Agriculture Real Estate