Form AG-03362 "Minnesota Beginning Farmer Tax Credit - Asset Owner Application" - Minnesota

What Is Form AG-03362?

This is a legal form that was released by the Minnesota Department of Agriculture - a government authority operating within Minnesota. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on January 31, 2022;
  • The latest edition provided by the Minnesota Department of Agriculture;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form AG-03362 by clicking the link below or browse more documents and templates provided by the Minnesota Department of Agriculture.

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Download Form AG-03362 "Minnesota Beginning Farmer Tax Credit - Asset Owner Application" - Minnesota

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625 Robert Street North, Saint Paul, MN 55155-2538
www.mda.state.mn.us
Rural Finance Authority Phone: 651-201-6004
APPLICATION INSTRUCTIONS
2022 Minnesota Beginning Farmer Tax Credit—Asset Owner
Deadline to apply for the tax credit is October 3, 2022
Application Part A –
Asset Owner Information (required by all applicants)
• Complete basic demographic section.
Application Part B –
Beginning Farmer Information (required by all applicants)
• Complete the section with the name of the person or entity that you will be purchasing/renting agricultural assets to.
Application Part C –
Agricultural Assets Information (required by all applicants)
• Describe the type of operation you will be selling or renting to the beginning farmer.
• Detail the land information as required if this is a land transaction.
• Provide a signed copy of the lease with all terms if leasing.
• Provide a signed copy of the Settlement Statement if purchasing land (this can be sent in later if the sale has not yet taken place).
• Provide a signed bill of sale if selling equipment or livestock.
• Detail the asset information as required if this transaction involves anything other than land.
t “Agricultural Assets” means agricultural land, livestock, facilities, buildings and machinery used
for farming in Minnesota.
t You must notify the RFA of any future termination of a rental or share rent agreement.
Crop Share Lease
• The asset owner will receive a tax credit equal to 15% of the cash equivalent of the gross rental income in each of the first,
second and third years of the share rent agreement as calculated below.
• The T-yield data will be posted on the MDA website. The price will be based off of the crop insurance program Fall Price which
averages the month of October. If an asset owner is using the T-yield method and the farmland is located in multiple counties,
the tax credit will be calculated using the T-yields for the county with the majority of acres.
• All tax credit calculations will be completed with the respective county’s previous year’s historical average T-yield data or the
documented previous year’s Average Production History (APH) for the specific plot of land.
• Non-Program and Specialty crops tax credit calculation will be based off of the actual production and a documented price at
the time of harvest.
Crop Share Lease Examples
A beginning farmer leases 160 acres of crop land on a 65/35 share basis with ½ of the acres allocated to corn and ½ the acres
allocated to soybeans. Asset owner receives 35% of the crop:
CORN
80 acres x 170 bu/acre (APH or T-Yield) x 35% (Crop share) x $3.99 (USDA Fall Price) x 15% (Tax Credit) = $2,848.86
SOYBEANS
80 acres x 50 bu/acre (APH or T-Yield) x 35% (Crop share) x $9.25 (USDA Fall Price) x 15% (Tax Credit) = $2,215.50
TOTAL SHARE LEASE TAX CREDIT = $4,727.10
Non-Program and Specialty Crop Share Lease Example
PEAS
80 acres x 3,100 (actual harvest) x 35% (Share rent) x .12 (actual price at harvest) x 15% = $1,562.40
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 1 of 5
625 Robert Street North, Saint Paul, MN 55155-2538
www.mda.state.mn.us
Rural Finance Authority Phone: 651-201-6004
APPLICATION INSTRUCTIONS
2022 Minnesota Beginning Farmer Tax Credit—Asset Owner
Deadline to apply for the tax credit is October 3, 2022
Application Part A –
Asset Owner Information (required by all applicants)
• Complete basic demographic section.
Application Part B –
Beginning Farmer Information (required by all applicants)
• Complete the section with the name of the person or entity that you will be purchasing/renting agricultural assets to.
Application Part C –
Agricultural Assets Information (required by all applicants)
• Describe the type of operation you will be selling or renting to the beginning farmer.
• Detail the land information as required if this is a land transaction.
• Provide a signed copy of the lease with all terms if leasing.
• Provide a signed copy of the Settlement Statement if purchasing land (this can be sent in later if the sale has not yet taken place).
• Provide a signed bill of sale if selling equipment or livestock.
• Detail the asset information as required if this transaction involves anything other than land.
t “Agricultural Assets” means agricultural land, livestock, facilities, buildings and machinery used
for farming in Minnesota.
t You must notify the RFA of any future termination of a rental or share rent agreement.
Crop Share Lease
• The asset owner will receive a tax credit equal to 15% of the cash equivalent of the gross rental income in each of the first,
second and third years of the share rent agreement as calculated below.
• The T-yield data will be posted on the MDA website. The price will be based off of the crop insurance program Fall Price which
averages the month of October. If an asset owner is using the T-yield method and the farmland is located in multiple counties,
the tax credit will be calculated using the T-yields for the county with the majority of acres.
• All tax credit calculations will be completed with the respective county’s previous year’s historical average T-yield data or the
documented previous year’s Average Production History (APH) for the specific plot of land.
• Non-Program and Specialty crops tax credit calculation will be based off of the actual production and a documented price at
the time of harvest.
Crop Share Lease Examples
A beginning farmer leases 160 acres of crop land on a 65/35 share basis with ½ of the acres allocated to corn and ½ the acres
allocated to soybeans. Asset owner receives 35% of the crop:
CORN
80 acres x 170 bu/acre (APH or T-Yield) x 35% (Crop share) x $3.99 (USDA Fall Price) x 15% (Tax Credit) = $2,848.86
SOYBEANS
80 acres x 50 bu/acre (APH or T-Yield) x 35% (Crop share) x $9.25 (USDA Fall Price) x 15% (Tax Credit) = $2,215.50
TOTAL SHARE LEASE TAX CREDIT = $4,727.10
Non-Program and Specialty Crop Share Lease Example
PEAS
80 acres x 3,100 (actual harvest) x 35% (Share rent) x .12 (actual price at harvest) x 15% = $1,562.40
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 1 of 5
Application Part D
Are you or your spouse a family member of the beginning farmer who will be purchasing/renting from you?
The transaction taking place must not involve a family member by blood or marriage. “Family member” means a family member
within the meaning of the Internal Revenue Service Code, section 267(c)(4). This includes parents, grandparents, brothers,
sisters, spouses, children, and grandchildren. Legal Adoption shall be considered in full effect.
Application Part E –
Purchase/Rental/Lease Agreement Information
• Include any relevant documentation if completing the application or include with your package you mail to the RFA.
• Sign and date application and submit either via email (preferably) or by printing out
Rural Finance Authority
Minnesota Department of Agriculture
625 Robert St. N.
St. Paul, MN 55155
Share Crop Prices for the Beginning Farmer Tax Credit 2022
We will use the Harvest Price as posted on the RMA site
for Minnesota as of December of the previous year
Commodity
Price
Corn
5.37/bu
Soybean
12.30/bu
Wheat (spring)
9.21/bu
Sunflower (oil)
.316/lb
Organic
Commodity
Price
Corn
11.21/bu
Soybean
23.36/bu
Wheat (spring)
19.05/bu
Sunflower (oil)
.575/lb
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 2 of 5
625 Robert Street North, Saint Paul, MN 55155-2538
www.mda.state.mn.us
Rural Finance Authority Phone: 651-201-6004
APPLICATION
2022 Minnesota Beginning Farmer Tax Credit—Asset Owner
The data on this form will be used to certify your eligibility in the Beginning Farmer Tax Credit Program as defined by Minnesota
Statute 41B.0391 subdivision 1. You are not legally required to provide all of the information on this form, but the Department of
Agriculture will only certify the eligibility of asset owners who provide all of the requested information. The information provided on
this form will be shared with the Minnesota department of Revenue to validate your tax credit.
A Asset Owner Information (required by all applicants)
Mark which form of business describes your operation. The owner of agricultural assets cannot be an equipment dealer, livestock
dealer, or a comparable entity engaged in the business of selling agricultural assets for profit. If the asset owner is a grantor trust
(flies tax returns with a SSN), complete the application with the individual grantor’s name and information. If the asset owner
is a non-grantor trust (files tax return with a FEIN), complete the application using the trust’s name and information. Names,
addresses, and percentages must be provided for credits to be issued. If applying on behalf of one of these entities, provide
documentation with the above requested information. Authorization to sign or additional signatures on the application may be
required if the entity is a trust.
Sole Proprietor
Partnership
Non-Grantor Trust
Grantor Trust
S Corporation
LLC
Name of the sole proprietor or individual grantor of a grantor trust
(NOTE: Applicant name must match that of the owner/lessor on the lease.):
Business Name as it appears on tax return (Partnership, non-grantor trust, S Corp., LLC.):
Representative/Title:
Address:
City:
State:
Zip:
Phone:
Email:
B Beginning Farmer Information (required by all applicants)
Name:
Address:
City:
State
Zip
C Agricultural Assets Information (required by all applicants)
Describe the type of operation you will sell/rent to the beginning farmer if it is a land transaction.
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 3 of 5
Legal description of the land you will sell/rent to the beginning farmer (5% tax credit for sale or 10% tax credit for lease).
Tax
# of
Section/Sub-Section
Dollar
Total Tax
County
Township
Range
Credit
Acres
(eg.1 1/2-NW 1/4)
Amount
Credit $
%
Description of the Agricultural Asset you are selling/renting (complete applicable fields; 5% tax credit for sale or 10% tax credit for lease).
# of
Make/Model (If
Tax
Total Tax
Description
Dollar Amount
Assets
Applicable)
Credit %
Credit $
Crop Share Lease Information
Program Crop Calculation Table
APH or
Asset Owner’s
USDA Fall
Tax
Total Tax
Crop/County
Acres
T-Yield
Share Basis %
Price
Credit %
Credit $
15
15
15
15
Non-Program or Specialty Crop Table
Actual
Asset Owner’s
Actual Price
Tax
Total Tax
Crop/ County
Acres
Harvest
Share Basis %
at Harvest
Credit %
Credit $
15
15
15
15
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 4 of 5
D Are you or your spouse a family member of the beginning farmer who will be purchasing/renting from you?
“Family member” means a family member within the meaning of the Internal Revenue Service Code, section 267(c)(4). This includes
parents, grandparents, brothers, sisters, spouses, children, and grandchildren. Legal Adoption shall be considered in full effect. For
a Trust, Corporation, Partnership, or LLC, the transaction cannot involve a family member of any beneficiary, trustee, shareholder,
partner, or member.
YES
NO
If you share a last name with the beginning farmer, state your relationship to them: ______________________
E Purchase/Rental/Lease Agreement Information
Provide a copy of the purchase/rental/lease agreement that includes the following:
Names of beginning farmer(s) and owner(s) of the agricultural asset(s).
Dates the agreement is effective.
The written legal description (county, subsection, township, range) of all land and/or all relevant identifying information of
other assets.
The methods of rent payments and the payment schedule(s):
t Cash Rent Lease: The dollar amount, payment dates, and the yearly total to be paid each year.
t Share crop Lease: The percentage of the owner’s and beginning farmer’s share of the crops to be divided each year.
t Livestock Share lease: The percentage of the owner’s and the beginning farmer’s share of the livestock to be divided
each year.
t Purchase: The amount paid for the purchase of the agricultural asset.
Signed and dated by the beginning farmer and the asset owner
Note: only one copy of the lease is needed from the beginning farmer and the owner.
If using Average Production History, provide documentation of historical prices
Asset owner must sign this statement. Legal representatives for a corporation may sign on behalf of that entity.
Documentation may be required for authorization purposes.
I certify that the above information and any supplemental information is correct and true to the best of my knowledge. Furthermore,
I will adhere to the Minnesota Beginning Farmer Tax Credit Program and its Regulations.
Signature:
Date:
Deadline to Apply: October 3 of the year for which the tax credit is sought.
Applicants are highly encouraged to submit applications early in the year.
If any information on this application changes, the applicant is required to contact the RFA with the changes.
For any questions, contact:
Rural Finance Authority
Minnesota Department of Agriculture
625 Robert Street North, St. Paul, MN 55155
Phone 651-201-6004
Mda.bftc@state.mn.us
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request
AG-03362
by calling 651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
1/31/22
PAGE 5 of 5
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