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Local farmer Kelsey Love Zaavedra testified at the state Capitol right before Easter break in support of a very basic thing that lawmakers can do to improve success for beginner farmers. There are bills being heard in the House and senate that will modify the wording that defines a farmer and the size of a farm eligible for property tax ag credit.  

As the owner of a five acre market farm, Heirloomista, just west of Almelund, Zaavedra sells direct to consumers and at Mill City Market in the metro as well.

To provide some help to small farms owned by beginner or emerging farmers, she told the MN Senate Tax Committee that  in order to qualify for a property tax break or “ag credit” the wording of property tax law needs to be brought in tune with the times.  

Zaavedra explained that the emerging farmer movement is founded on less-intensive farming practices,  meaning smaller operations than those of the past.  The law right now only considers small properties,  with a residential structure, being used for storage of machinery, nursery stock production or intensive grain drying /storage.

Emerging farmers find that accessing land is expensive and there are forces, such as taxes, work against hanging onto land, while their ag income gets established.  

If the classification tax code would authorize farms of less than 11 acres to qualify for the same large operation ag credit,  it would help reduce some costs.   

Emerging farmers are up against an entrenched  system that incentivizes development, she has realized.

She tells the Press that she met with the Commissioner of the Department of Revenue the last couple years to learn more and spread the message that, “We (emerging farmers) are growing food...” and the rules should extend to them.

Zaavedra, who is also President of Chisago County Farmers Union, thinks the message is catching-on. 

Lawmakers in the Senate Tax Committee heard that there are 2,000 acres disappearing daily in Minnesota for use by developers.  The result is increases in land costs always at the door.  

The senate committee seemed supportive and there was little pushback.

The person looking to qualify— under legislation that right now could be incorporated into the omnibus tax bill—would need to file a schedule F form with the county assessor or show a financial plan.  To be eligible for the property tax reduction, as a working farm, the property needs to generate $5,000 in income over two years.

Staff analysis shared  in the senate hearing was that the impact would be “negligible’ as far as state budget. 

This is a “tax shift” Chisago County Assessor Daryl Moeller told the Press.  He said depending on the numbers of emerging farmers who apply for the credit (if adopted), there may or may not be any impact locally.  The assessor’s staff stand ready to implement whatever the legislature adopts; but Moeller added the MN Association of Assessing Officers had not been invited to send experts to testify before lawmakers, on either file.

He explained that if the county is required to verify the incomes of applicants, this will take extra time.  The incomes are submitted by a mid-April deadline and if  must verify numbers for the following year data (January) the “timing is critical.”

He added that he appreciates the legislature is attempting to define a dollar amount for market farming and his only concern is the income isn’t set too high or low.

Senate File 4828 was laid over in committee. It is authored by Senator Aric Putnam, DFL-St Cloud.  Its companion is House File 4562, which at press deadline had not been reviewed in any committee hearings.  

If the legislation is enacted it would not go into effect  until the 2025 year tax assessment.

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