Nebraska NextGen Boosts Farm Access

By Scout Nelson

Starting a career in agriculture can be difficult, especially for new farmers trying to access land, equipment, and capital. Rising costs, limited long-term leases, and competition for farmland make it challenging to establish a stable operation. Land access remains one of the biggest barriers for beginning producers in Nebraska.

At the same time, Nebraska agriculture is experiencing a major generational shift. Many farm and ranch owners are nearing retirement, and not all have family members ready to take over. This situation creates uncertainty but also an opportunity to connect experienced landowners with motivated new producers.

To help address this challenge, the Nebraska Department of Agriculture created the NextGen Beginning Farmer Tax Credit Program. The program operates under the Beginning Farmer Tax Credit Act and is designed to benefit both beginning farmers and agricultural asset owners.

Through NextGen, landowners can receive a refundable Nebraska income tax credit for leasing or renting farmland, machinery, or breeding livestock to a qualifying beginning farmer. A beginning farmer is generally defined as someone who has farmed or ranched for fewer than 10 of the last 15 years. This definition allows individuals transitioning from hired roles to ownership to participate.

To qualify, asset owners must enter a lease lasting at least three years. This requirement provides beginning farmers with stability and predictability as they build their operations. Asset owners may receive a refundable tax credit equal to 10 percent of cash rent or 15 percent of share crop rent each year, for up to three years. Because the credit is refundable, it can benefit retired or semi-retired landowners with little tax liability.

Relatives may also participate if they attend a succession planning workshop and include the leased asset in a written succession plan. This supports both new farmers and long-term farm transitions.

Additional support is available through the Negotiations Ag Mediation Program, which helps resolve financial or legal disputes. Producers may also access free legal, financial, disaster, and mental health support through the Rural Response Hotline at 800-464-0258. Regular clinics and workshops across Nebraska further support education and planning for agricultural families.

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