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Congress·In Committee·H.R. 6836

Congress Proposes Tax Breaks for Landowners Who Sell or Lease Farmland to New Farmers

Beginning Farmer Tax Incentive Act

3 months ago·View on Congress.gov

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill, introduced by Mr. Alford, would allow people who sell farmland to a "beginning farmer" to keep 40% of their profit tax-free, up to a limit of $1.5 million over five years.
  • Landowners who rent their fields to new farmers could also avoid paying taxes on up to $25,000 of that rental income each year, as long as the lease is for 10 years or less.
  • To qualify as a "beginning farmer," a person must generally have between one and 10 years of experience, be a U.S. citizen, or be approved for specific government farm loans.
  • The policy aims to make it easier and cheaper for the next generation of farmers to get the land they need to start their businesses, which is often a major hurdle for young people in agriculture.
  • If the land stops being used for farming within five years of the sale, the person who received the tax break would have to pay some or all of that money back to the government.
TaxesAgricultureSmall Business

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(3)
Farmer Rancher
Helps

New farmers get easier access to farmland as sellers and landlords gain tax incentives to work with them.

Small Business Owner
Helps

Beginning farmers starting farm businesses benefit from lower land costs as sellers pass along tax savings.

Retiree
Helps

Retiring farmers who sell or lease land to beginning farmers can exclude significant income from their taxes.

Broader Impacts

Score
Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions
Dec 18, 2025House

Referred to the House Committee on Ways and Means.

Dec 18, 2025

Introduced in House

Source Information

Document Type

Congressional Bill

Official Title

Beginning Farmer Tax Incentive Act

Bill NumberHR 6836
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Analysis generated by AI. Always verify with official sources.