Corporate Farm Law

CORPORATE FARM LAW

Minnesota Statute 500.24 requires that all pension or investment funds, corporations, limited partnerships, limited liability companies, and trusts must be certified by the Minnesota Department of Agriculture before engaging in farming or having an interest in agricultural land.

Several exceptions to this rule allow some entities to own and farm agricultural land subject to this law.  Section 500.24 can be summarized as follows:  entities subject to the law include:  Corporations (S-corps, C-corps, etc), Limited Liability Companies (LLC's), Limited Partnerships (LP's), Limited Liability Limited Partnerships (LLLP's) and Trusts.  Entities not subject to the law include:  Individual Ownerships (sole proprietorships), General Partnerships, and Limited Liability Partnerships (LLP's).

Once an entity that is subject to the law meets the requirements of 500.24, that entity is issued a letter of approval and is required to annually verify eligibility information with the Minnesota Department of Agriculture (MDA).  The entity's name will also appear on MDA's database of approved entities.  Entities that are subject to the law must be listed on the MDA's website in order to be eligible for agricultural homestead.  If the entity is subject to the law and they are not listed on the website, they must contact MDA to get registered.  Any questions regarding corporate farm eligibility should be directed to Doug Spanier with the MDA at 651-201-6166 or email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it   The website for the MDA is www.mda.state.mn.us and the application is available there to download as well as on this webpage.

Entities must be registered with the Minnesota Department of Agriculture (MDA) in order to receive homestead treatment on qualifying land pursuant to Minnesota Statutes, section 273.124.  Once an entity meets the requirements of 500.24 or if the entity is not required (individuals, general partnerships and LLP's), the requirement of section 273.124 must still be met for a property to be granted an agricultural homestead.

 

©2009 Faribault County Assessor's Office. All Rights Reserved | Site Design By BEVCOMM®