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How an Ohio tax credit program is helping new farmers grow

Gray farm buildings and a red barn sit on acres of farmland on a dreary day.
Erin Gottsacker
/
The Ohio Newsroom
Baumgarte Farm has been in Trevor German's family for six generations. He hopes to continue the family legacy, and with the help of the Beginning Farmer Tax Credit, expand the farm and make it viable for future generations.

Ohio agriculture has a problem.

The state鈥檚 farmers are aging and increasingly looking to retire. But aspiring farmers often can鈥檛 break into the field, unable to afford the steep cost of land and equipment to get started.

Trevor German knows these struggles first-hand. His family has owned a farm in northwest Ohio for more than a century.

鈥淚t goes back many generations to my great grandparents and great great grandparents,鈥 he said.

But despite his family history, for a long time, German wasn鈥檛 certain he鈥檇 be able to continue the farming tradition.

He鈥檚 not guaranteed to inherit his family鈥檚 land. His mom and her siblings are first in line, and he has other cousins. Even if he does, the farm likely wouldn鈥檛 be enough to support him. It鈥檚 pretty small for the area, German said, and it produces enough money to sustain just his grandfather, who had to work other jobs on top of the farm throughout his career to support his family.

A man in blue jeans sits inside a bright red tractor with one hand on the steering wheel.
Erin Gottsacker
/
The Ohio Newsroom
Trevor German is the first Ohioan to purchase land under the Beginning Farmer Tax Credit Program. He bought 20 acres, and says the program was a big help.

If he doesn鈥檛 inherit the land, the cost to start a new operation is daunting.

鈥淔arming, as any farmer knows and anybody around agriculture knows, is incredibly capital intensive,鈥 German said, inside a garage full of high-tech tractors, planters and drones. 鈥淚 always knew I wanted to be involved in agriculture in some way, shape or form. Just financially, I never knew if it was quite feasible to come back to the family farm.鈥

German is in a better position than many aspiring farmers. He has the chance to inherit land, and was raised around a culture of agriculture. But even with those advantages, he might not be able to achieve the dream of farming full time.

The Beginning Farmer Tax Credit Program

Last year, however, a new Ohio program put that dream a step closer to fruition: the .

That program requires beginning farmers like German to take a financial management course. The state gives them a tax credit to pay for the class, but it doesn鈥檛 actually give them a tax break to purchase land.

The seller, however, does get a tax credit of 3.99%, if the buyer, like German, has taken the course. That incentive is essential, because the seller would otherwise likely sell to a higher bidder.

German was the first person to use this program and it enabled him to buy 20 acres of land. Now he can farm that land and help out on the family farm until his grandfather is ready to step back.

鈥淎round here, ground doesn't come up for sale very often,鈥 German said. 鈥淎nd if it does, it's usually a 鈥榳ho can write the biggest check鈥 kind of game. But this tax credit enables the smaller farmers, such as ourselves and the people trying to get into it, a way to get in that conversation.鈥

He鈥檚 not the only farmer to feel this way. Nathan David also bought land through the Beginning Farmer Tax Credit Program.

He doesn鈥檛 come from a farming background, and says without the program, buying land would have been a bigger struggle.

鈥淚t was a pretty good bargaining chip,鈥 he said. 鈥淚t gave the sellers an incentive to sell to us at a price that we could afford.鈥

Now, he and his wife plan to open a 鈥測ou pick鈥 farm near Sandusky. Someday, he hopes it鈥檒l be filled with flowers, pumpkins and maybe Christmas trees.

Ohio鈥檚 aging farmers

The program is intended to help beginning farmers like this, said Sarah Huffman, the executive director of Ohio鈥檚 Office of Farmland Preservation. But it also helps older farmers with hopes of retiring.

That population is growing. Across the country, about are over the age of 65, according to the U.S. Department of Agriculture, and Ohio is not immune to the trend.

鈥淥hio's farming community is aging,鈥 Huffman said, 鈥渁nd they don't often have successors in mind or in line for that.鈥

This program gives those farmers a way to keep their land 鈥 and legacy 鈥 alive.

"We need to keep new farmers coming into the industry or give them an opportunity to continue because they do provide for all of us.鈥
Sarah Huffman, Ohio Department of Agriculture

These days, some farmers may not feel like they have that choice, Huffman said, so more and more are selling to developers.

鈥淎ll you have to do is look around, especially in some of your central Ohio counties, to see that that is absolutely what's happening. And we can't stop any of that,鈥 Huffman said. 鈥淏ut what we can do is let both the beginning farmers and the transitioning farmers know that there is another option.鈥

The U.S. Department of Agriculture found Ohio had of farmland in 2022 than the year before. And the American Farmland Trust, which has a vested interest in preserving farmland, predicts Ohio could lose in coming years.

That could have consequences, Huffman said, and not just for farmers.

Agriculture is a huge industry in Ohio; it generates for the state鈥檚 economy each year. But it鈥檚 not just about money.

鈥淭here's an organization out there that says, no farms, no food. And that's absolutely correct,鈥 Huffman said. 鈥淪o we need to keep new farmers coming into the industry or farmers who, like Trevor, have come from generations of farming, give them an opportunity to continue because they do provide for all of us.鈥

Trevor German is thrilled to have that opportunity.

This winter, he鈥檚 getting ready for a busy planting season, and he鈥檚 bringing the vision and vigor of a new generation to the century-old operation. He just helped to modernize a ground drive pump and he鈥檚 bringing in .

But German鈥檚 vision for the future doesn鈥檛 end with the next planting season.

鈥淭he dream is to continue on Baumgarte farms and expand it along the way,鈥 he said, 鈥渢o make it not only viable for us, but viable for future generations.鈥

This farm has been in his family for more than 100 years. He鈥檚 hoping for 100 more.

Erin Gottsacker is a reporter for The Ohio Newsroom. She most recently reported for WXPR Public Radio in the Northwoods of Wisconsin.