Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer

19 Co-sponsors

• John J. Bonacic
• Thomas Croci
• John A. DeFrancisco
• Hugh T. Farley
• Patrick M. Gallivan
• Joseph A. Griffo
• William J. Larkin Jr.
• Kenneth P. LaValle
• Betty Little
• Kathleen A. Marchione
• Michael F. Nozzolio
• Thomas F. O'Mara
• Robert Ortt
• Marc Panepinto
• Michael H. Ranzenhofer
• Joseph E. Robach
• James L. Seward
• David J. Valesky
• Catharine Young

Title of bill

An act to amend the tax law, in relation to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer

Purpose

To establish a tax credit for farmers who sell or rent their agricultural land to young farmers.

Summary of provisions

Sections 1 and 2 amend section 210 and section 606 of the tax law to create and allow for a credit for current farmers who sell or rent their agricultural lands to young farmers.

Section 3 provides the effective date.

Justification

Current tax law allows for various tax credits. It does not currently allow a credit for farmers who are considering selling or renting their agricultural lands to a young farmer. Such programs however, do exist in other states. New York state tax law provides for various tax credits already. Allowing a tax credit for current farmers who agree to sell or rent their agricultural lands to a young farmer is good public policy. Taking steps to recruit young, new farmers to the agricultural profession is certainly one area in need of incentives, and helping to ensure agricultural lands are available for sale or rent to young or beginning farmers to get them started in the agricultural profession, is one way to provide that incentive.

Agriculture is the leading industry in New York, yet New York's farm community is aging and it has become increasingly difficult to attract young people to farming and to encourage younger generations to consider farming as a career. The average age of farm operators in New York is 59, and is expected to continue to increase unless steps are taken to reverse this trend. The U.S. Secretary of Agriculture has set a goal of recruiting 100,000 new farmers across the country to replace those who are retiring. By enacting a tax credit to encourage current farmers to sell or rent their land to young farmers, we will be taking one small step at helping that recruitment effort, and helping to keep agricultural lands in production, rather than losing them permanently.

Farming is a difficult business and there are many barriers to keeping current farm land in the hands of agricultural producers. As the current crop of farmers continues to age out of the business, we need to encourage these farmers to sell their land to those considering entering the profession. It is in the best interest of the state to ensure that enough producers are recruited and retained in agricultural production. Additionally, the recent increase in demand for quality fresh locally grown foods and beverages highlight the importance of assisting new farmers to enter the profession.

Legislative history

2013-2014: S.6882

Fiscal implications

Undetermined. The bill allows a ten percent tax credit for the sale or use of agricultural land to a young farmer.

Effective date

Immediately and shall apply to taxable years beginning on and after January 1, 2017.