The Kentucky Selling Farmer Tax Credit program encourages continued use of agricultural land for farming by granting tax credits to selling farmers who agree to sell agricultural land and assets to beginning farmers. Farmers wanting to sell agricultural land and assets may be eligible for a Kentucky income tax credit up to 5% of the purchase price of qualifying agricultural assets, subject to a $25,000 calendar year cap and a $100,000 lifetime cap.
A beginning farmer cannot have previously owned any agricultural land for a period exceeding 10 years. In addition, beginning farmers must commit to managing and operating a for-profit farming business for a minimum of 5 years after purchasing eligible agricultural land.
Selling farmers cannot have more than 50 full-time employees and must be the legal owner of agricultural land and assets sold to a beginning farmer. Sales involving immediate family members do not qualify for tax credit consideration.
Prior to completing a sale of agricultural assets, applicants should review the Kentucky Selling Farmer Tax Credit Guidelines for more detailed program information and eligibility requirements. After completing a sale, both the beginning farmer and selling farmer must submit applications before tax credit eligibility can be determined.
While this program provides tax credits to selling farmers, other state agricultural programs, such as the Kentucky Agricultural Finance Corporation’s Beginning Farmer Loan Program, are available to assist beginning farmers.
The Beginning Farmer and Selling Farmer applications below are in Microsoft Excel format. If you need assistance with the forms, please email cedsbsd@ky.gov or call (502) 564-7670.
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