NextGen : Eligibility & Benefits

Beginning Farmer/Rancher Benefits:

Increase their chance to rent agricultural assets.
Sign a minimum of a three-year lease agreement on a farm or ranch.
Forge a relationship with an asset owner for potential long term arrangement.
The beginning farmer may be a relative if the parties meet the succession plan requirements.
Qualify for the Personal Property Tax Exemption (PPTE).

Personal property used in production agriculture or horticulture, valued up to $100,000, may be exempted from Nebraska personal property taxes.
The tax exemption may be received each year for three consecutive years.
Deadline to apply is November 1st of the year preceding the year for which exemptions are sought.
Approved applicants will receive an Eligibility Certificate.
To claim an exemption of taxable tangible personal property, present the Eligibility Certificate and tax information to your County Assessor by December 31st for approval along with Nebraska Department of Revenue Exemption Application Form 1027.
Eligibility requirements and application procedures for the beginner are the same whether you apply for the tax credit and/or the PPTE, but you do not need to rent from someone to be eligible for the PPTE.

A qualified beginning farmer/rancher may receive a one-time state income tax credit for the actual cost of participation in an approved financial management program incurred during the tax year for which the credit is claimed, up to a maximum of $500.

Receive a refundable Nebraska income tax credit each year for a minimum of a three-year lease you have with an eligible beginning farmer/rancher.
The beginning farmer may be a relative if the parties meet the succession plan requirements.
An asset owner will receive a refundable tax credit equal to 10% of the cash rent or 15% of the value of the share crop rent received each year for three years.

Cash rent: 100 acres x $300 cash rent per acre = $30,000 total cash rent x 10% = $3,000 each year for three years for a total of $9,000;
Share crop rent: 100 acres x 200 bushels per acre x 50% (owner's share) = 10,000 bushels x $5.00 = $50,000 for owners share x 15% = $7,500 each year for three years for a total of $22,500; or
Cow/calf share rent: 100 calves x 50% (owner's share) = 50 calves x $800 (value of animal at time of division of calves) = $40,000 x 15% = $6,000 each year for three years for a total of $18,000.