Bills · HR 6836
IN COMMITTEE· 119TH CONGRESS
House BillHR 6836Taxation
Beginning Farmer Tax Incentive Act
INTRO DEC 18· LAST ACTION DEC 18
READING
6MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it tries to tackle a significant challenge in American agriculture: the aging population of farmers and the difficulty new farmers face in getting started. Many experienced farmers are nearing retirement, but farmland is often expensive, making it hard for young or new farmers to buy or rent land.
If this bill becomes law, it could encourage more seamless transitions of farmland from one generation to the next, helping to keep family farms in operation and preserving agricultural land. It might make farming a more viable career choice for new entrants by reducing financial barriers to land access. Without this bill, the trend of farmland consolidation or conversion to non-agricultural uses might continue unchecked, potentially leading to fewer small and medium-sized farms and reduced diversity in the agricultural sector.
KEY PROVISIONS
5AI-extractedPROVISION 01
Excludes 40% of the capital gain from gross income when qualifying farmland is sold to a beginning farmer, with a cap of $1,500,000 per year.
This provision aims to reduce the tax burden on landowners who sell their farms to new farmers, encouraging intergenerational land transfers.
PROVISION 02
Excludes income from leasing qualifying farmland to a beginning farmer for up to 10 years, capped at $25,000 per year.
This encourages landowners to rent land to new farmers, potentially making land access more affordable for those just starting out.
PROVISION 03
Defines 'beginning farmer' based on experience (1-10 years farming), loan approval, farming knowledge in new agriculture, or familial relation to the seller.
This ensures the tax incentives are targeted specifically at those considered new to farming or part of a succession plan, rather than established large-scale operators.
PROVISION 04
Includes a 'recapture' rule where a portion of the tax benefit must be repaid if the farmland stops being used for farming within 5 years of sale.
This prevents abuse of the tax incentive by ensuring the land continues to be used for agricultural purposes after the transfer.
PROVISION 05
Requires annual reports to Congress from the Secretary of the Treasury on the costs, benefits, and statistical information regarding the income exclusion.
This provides oversight and allows for evaluation of the program's effectiveness and impact over time.
SPONSORSHIP
1 + 0
R· Missouri
YRS IN OFFICE
3
BILLS LED
28
ACTION TIMELINE
2 EVENTSDEC 18
Introduced in House
DEC 18
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 6836
Congress119th
StatusIn Committee
IntroducedDec 18, 2025
Last actionDec 18, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED DEC 18, 2025
House BillHR 6836Taxation
Beginning Farmer Tax Incentive Act
INTRODUCED DEC 18, 2025· LAST ACTION DEC 18, 2025
PASSAGE CHANCES
—%
READING
6 min
COSPONSORS
0
COMPLEXITY
Moderate
