NextGen Beginning Farmer Program (Beginning Farmer Tax Credit)

NextGen utilizes Nebraska's Beginning Farmer Tax Credit Act to help new producers get a head start in farming and ranching while giving back to farmers and ranchers who own agricultural assets. An asset owner receives a refundable Nebraska income tax credit each year for a minimum three-year lease with an eligible beginning farmer/rancher: 10% of the cash rent, or 15% of the value of share-crop rent, received each year for three years. A qualifying beginning farmer/rancher may also qualify for the Personal Property Tax Exemption (PPTE) on personal property used in production agriculture valued up to $100,000, exempt from Nebraska personal property taxes each year for three consecutive years, and may receive a one-time state income tax credit for the actual cost of participation in an approved financial management program, up to a maximum of $500. As of 10/01/25 the beginning farmer net worth limit is $750,000.

Beginning farmers/ranchers seeking to rent agricultural assets under a minimum three-year lease (the beginning farmer may be a relative if the parties meet succession-plan requirements), subject to a net worth limit of $750,000 (as of 10/01/25). Asset owners who lease agricultural assets to an eligible beginning farmer/rancher qualify for the refundable tax credit.

Applicants complete NextGen applications and forms (available at nextgen.nebraska.gov/forms.html). Effective 11/20/25, a board-approved balance sheet and cash-flow statement must be submitted. The PPTE deadline to apply is September 1st of the year preceding the year for which exemptions are sought; approved applicants receive an Eligibility Certificate to present with Nebraska Department of Revenue Exemption Application Form 1027 to the County Assessor by December 31st.