Alford Introduces Legislation to Incentivize New Farmers, Bolster Rural Communities & Food Security

Today, Congressman Mark Alford (MO-04) introduced the Beginning Farmer Tax Incentive Act. This critical legislation will increase new farmers' access to land by incentivizing retiring farmers to sell their arable land to the next generation of agricultural producers.

"America is losing one thousand farms a month. To reverse this alarming trend and protect our food security, we must help the next generation carry on the legacy of family farming that built this nation," said Congressman Alford. "I'm proud to introduce this bill, which is based on similar state level legislation in Missouri, to boost aspiring farmers and our rural communities."

Read the text of the legislation here.

This legislation has robust support from Missouri's agriculture community:

"Missouri Farm Bureau commends Congressman Alford for pressing for reforms to help beginning farmers," said fifth generation St. Claire County farmer and Missouri Farm Bureau President Garrett Hawkins. "Creating an environment where the next generation can return home to the farm and rural America is always a goal of our organization. This legislation builds on successes right here in Missouri for the benefit of beginning farmers and ranchers nationwide. We look forward to working with Congressman Alford and his colleagues to move the bill forward."

"We sincerely appreciate Congressman Alford for introducing this legislation," said Missouri Soybean Association President Renee Fordyce. "At the heart of almost every family farmer is the desire to pass the operation down to the next generation. This bill, similar to the state passed legislation in Missouri, would help bring that dream to reality for soybean growers across Missouri."

"The Missouri Corn Growers Association thanks Congressman Alford for introducing this important, forward-looking legislation and for his continued support," says Missouri Corn Growers Association President Brian Lehman. "The future of agriculture depends on keeping farmland in production while opening doors for family members and beginning farmers to step in and succeed. This legislation takes a meaningful step toward preserving family farms and rural communities."

Background:

• America is facing a generational crisis in agriculture with the average farmer being nearly 60 years old, and fewer young producers able to afford to enter the industry.
• This bill directly addresses that challenge by lowering the financial barriers that prevent new farmers from accessing land, which has been the single greatest obstacle to entering agriculture.
• The purpose of this legislation is to expand access to land for new producers by encouraging the intergenerational transfer of farmland.
• The Beginning Farmer Tax Incentive establishes federal tax deductions for farm owners who sell, lease, or enter crop-share agreements with beginning farmers.
• The seller is eligible for a 40% gain exclusion with a $1.5 million annual cap that renews every 5 years from the date of qualifying sale of farmland.
• The legislation includes a five-year recapture provision on a 20% annual sliding scale if farmland ceases to be used for production farming purposes. Recapture provisions ensure accountability: if the land stops being used for farming, the tax benefit is clawed back.
• USDA has consistently identified beginning farmers as a priority population due to their importance in sustaining domestic food production.
• By offering meaningful tax incentives to landowners who sell or lease farmland to beginning farmers, the bill encourages land transfer to the next generation of family farmers rather than to large corporations or out-of-state investors.

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