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Owners of agricultural assets that lease or sell to beginning farmers in Minnesota may be eligible for the Beginning Farmer Tax Credit, which is open for applications through the Minnesota Department of Agriculture’s (MDA) Rural Finance Authority (RFA).

Those who have previously applied should take note of the new application deadlines for rentals (July 17) and sales (November 1). Additionally, recent legislative changes have resulted in several updates to the program to further incentivize farmland sales:

• An increase in the tax credit amount to 8% of the sale price for buyers and 12% if the buyer is an emerging farmer (previously 5% for all).
• A new maximum tax credit of $50,000 (previously $32,000).
• Direct family members such as parents, grandparents, and siblings are now eligible for farmland sales.

Qualifying applicants can include individuals, trusts, or qualified pass-through entities renting or selling land, livestock, facilities, buildings, or machinery used for farming in Minnesota to a beginning farmer.

A beginning farmer is defined as a Minnesota resident with the desire to start farming or who began farming in Minnesota within the past 10 years. They must provide positive projected earnings statements, have a net worth less than $979,000, and enroll in, or have completed, an approved farm business management (FBM) program.

Asset owners can claim credits in one of the below categories in a given tax year for each beginning farmer they lease/sell to:

To be eligible for the tax credit, both the asset owners and beginning farmers must submit applications.

Beginning farmers are also eligible for a nonrefundable Minnesota tax credit equal to the amount paid for FBM tuition, up to a maximum of $1,500. This tax credit is available for up to three years.

Full eligibility requirements and application materials can be found on the Beginning Farmer Tax Credit webpage. Questions may be directed to Jenny Heck at Jenny.Heck@state.mn.us or 651-201-6316.

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Media Contact
Logan Schumacher, MDA Communications
651-201-6193
Logan.Schumacher@state.mn.us

The Minnesota Department of Agriculture (MDA) has confirmed the presence of emerald ash borer (EAB) in Lyon County for the first time. There are now 41 counties in the state, including Lyon, with EAB.

A homeowner contacted the City of Marshall about a possible EAB infestation. The city superintendent inspected the tree of concern and recognized EAB galleries and other signs from trainings. MDA staff were able to find EAB larvae and collect samples. Federal identification confirmed emerald ash borer.

EAB was first discovered in Minnesota in 2009. The insect larvae kill ash trees by tunneling under the bark and feeding on the part of the tree that moves nutrients up and down the trunk. Often, the trees show several signs of infestation because of this. Woodpeckers like to feed on EAB larvae, and woodpecker holes may indicate the presence of emerald ash borer. Also, EAB tunneling can cause the bark to split open, revealing characteristic S-shaped galleries underneath.

Because this is the first time EAB has been identified in Lyon County, the MDA is enacting an emergency quarantine of the county, which limits the movement of firewood and ash material out of the area.

The MDA issues quarantines for all areas known to have EAB to reduce the risk of further spreading the tree-killing insect.

A virtual informational meeting for residents and tree care professionals in Lyon County will be held on Wednesday, July 19, 2023. Experts from the MDA will give a brief presentation followed by a question-and-answer session.

Emerald Ash Borer Virtual Informational Meeting:
Wednesday, July 19, 2023
2 – 3 p.m.
Register at www.mda.state.mn.us/eab

The public will also have an opportunity to provide input on the proposal to add Lyon County’s emergency quarantine to the state’s formal quarantine. The MDA is taking comments on the proposed formal quarantine now through August 15, 2023, and recommends adopting the quarantine on August 17, 2023. The proposed quarantine language can be found at www.mda.state.mn.us/eab.

Comments can be made during the virtual meeting or by contacting:

Kimberly Thielen Cremers
Minnesota Department of Agriculture
625 Robert Street North
St. Paul, MN 55155
kimberly.tcremers@state.mn.us

There is more EAB information on the MDA website.

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Media Contact
Brittany Raveill, MDA Communications
651-201-6131
brittany.raveill@state.mn.us

The Minnesota Department of Agriculture (MDA) has received $12.25 million through the USDA’s Resilient Food Systems Infrastructure (RFSI) program to help strengthen Minnesota’s food supply chain between the farmer and consumer by investing in infrastructure. The result of these investments will be more and stronger markets for small farms and food businesses to access, as well as an increase in locally made value-added products for consumers throughout the state.

The MDA will work in partnership with USDA to distribute these funds as competitive grants to invest in the aggregation, processing, manufacturing, storage, transportation, wholesaling, and distribution of locally and regionally produced food products. Eligible food products include fruits and vegetables, dairy, grains for human consumption, aquaculture, and other food products (excluding meat and poultry). The project will also fund business development services for new and established food companies.

The MDA is currently seeking public input to help shape priorities for the grant and business development programs. Interested parties have until July 31, 2023, to submit responses through an online survey. The MDA will also be hosting two virtual listening sessions where stakeholders can provide feedback:

• Tuesday, July 18, 2023, from 12-1 p.m. Register for this event.
• Wednesday, July 26, 2023, from 7-8 p.m. Register for this event.

The Minnesota RFSI Initiative will begin distributing funds in 2024.

More information about the four-year RFSI Initiative can be found on the MDA’s Local and Regional Markets webpage. Questions about the program or requests for survey access assistance may be directed to Michael Zastoupil at Michael.Zastoupil@state.mn.us or 651-201-6369.

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Media Contact
Logan Schumacher, MDA Communications
651-201-6193
Logan.Schumacher@state.mn.us

The Minnesota Department of Agriculture (MDA) is preparing to treat one area in Carlton County and three areas in and around the city of Duluth to slow the spread of spongy moth (previously known as gypsy moth). Officials will conduct aerial treatments July 14, break for the weekend, and begin again on Monday July 17. Work will begin as early as 6:30 a.m. each morning and continue throughout the day. The dates and times depend on weather conditions in the area.

The treatment area in Carlton County is near Holyoke along the Wisconsin border, totaling approximately 14,000 acres. The three treatment areas around Duluth; Duluth East, Duluth West, and Midway total approximately 12,000 acres. Residents can look up their address on an interactive map to determine if they are within any of these blocks.

The MDA will use a method of mating disruption involving the aerial application of an organically certified, waxy, food-grade substance containing pheromones specific to spongy moths that confuses the male moths. This makes it difficult for the male moths to find females for mating, reducing mating success. This results in fewer caterpillars hatching and attacking trees next year. The application is timed just as adult moths are emerging in early summer.

The mating disruption product will be applied by low-flying yellow planes contracted by the U.S. Forest Service in a joint project with the MDA. These planes fly approximately 150 feet above the treetops and will be traveling outside the treatment areas as the planes navigate between the spongy moth treatment sites. The product is not harmful to humans, animals, birds, or other insects, and will help protect forest health, property values, and the state’s tourism industry.

To help area citizens stay informed, the MDA has set up a Report a Pest information line at 1-888-545-MOTH (6684). The hotline will offer the latest details about treatment dates and times. Residents can sign up for updates about treatment progress by texting “MNMDA MOTH” to 66468 to receive text notifications or texting “MNMDA MOTH [your email address here]” to 66468 to receive email notifications.

Spongy moths are among America's most destructive tree pests, having caused millions of dollars in damage to Eastern forests. The moths are now threatening Minnesota. If present in large numbers, spongy moth caterpillars can defoliate large sections of forest. Oak, poplar, birch, and willow are among their preferred hosts. The moths spread slowly on their own, but people can unintentionally help them spread by transporting firewood or other items on which the moths have laid their eggs.

Contact the Minnesota Department of Agriculture at 1-888-545-6684 or ReportAPest@state.mn.us with questions regarding spongy moth and the planned treatments.

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Media Contact
Brittany Raveill, MDA Communications
651-201-6131
Brittany.Raveill@state.mn.us