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.

Delivered as tax credits and exemptions, not a cash award, so there is no dollar award ceiling — the benefit scales with your rent.

For the asset owner (the landlord). "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." The credit is refundable, so it pays out even if it exceeds your Nebraska tax liability. NDA's own worked examples:

• 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"

• 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"

Contract length is the gate on the whole deal. The owner must "Sign a minimum of a three-year lease agreement on a farm or ranch," and the credit runs for those three years. "The beginning farmer may be a relative if the parties meet the succession plan requirements."

For the beginning farmer/rancher. Two separate benefits:

• Personal Property Tax Exemption — "Personal property used in production agriculture or horticulture, valued up to $100,000, may be exempted from Nebraska personal property taxes," and "The tax exemption may be received each year for three consecutive years." Note $100,000 is a property valuation limit, not a payment. "you do not need to rent from someone to be eligible for the PPTE."

• Financial management reimbursement — "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." One time only, and it reimburses actual cost, so it can be less than $500.

Eligibility limit that caps who qualifies, not what you get. "As of 10/01/25 the beginning farmer net worth limit is set at $750,000."

Timing that can cost you a year. The PPTE "Deadline to apply is September 1st of the year preceding the year for which exemptions are sought." Approved applicants get an Eligibility Certificate, which must be presented "to your County Assessor by December 31st for approval along with Nebraska Department of Revenue Exemption Application Form 1027."

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.