“It was a pretty successful year for agriculture,” Missouri Soybean Association policy coordinator Liz Henderson says.

In the busy final days of the state legislative session, which ended May 12, grouping several measures together into an omnibus bill helped get the ag priorities across the finish line, says Jacob Knaebel, Missouri Corn Growers Association state legislative affairs manager.

“We were able to get an agriculture omnibus bill done this year,” Knaebel says.

The beginning farmer assistance was important for ag groups.

“We were most proud of that and probably worked the hardest on that,” Henderson says.

The beginning farmer bill is designed to improve access to land for beginning farmers. It gives an income tax exemption for a percentage of capital gains of up to $6 million for landowners who sell farmland to a beginning farmer. It also applies to cash rent income of up to $25,000 per year for landowners who rent to a beginning farmer. It provides tax breaks for sharecropping arrangements with beginning farmers.

The measure defines a beginning farmer as someone who has filed less than 10 Schedule F tax forms since the age of 18, or qualifying family members within three degrees of separation or legally adopted children.

Henderson says this encourages landowners to sell or rent to beginning farmers and makes it easier to sell by easing the capital gains tax burden from selling farmland that has increased significantly in value.

“One of the biggest barriers to getting into farming is the cost, and the cost that people have to pay in taxes when they sell that land,” she says.

Henderson says this leads to a lot of farmland being held until a landowner dies, then heirs sell it. With out-of-state investors looking to buy ag land, she says, young farmers might not even have a chance to buy. She believes this measure will improve the situation for young farmers.

“Hopefully that helps some folks getting started,” she says.

Knaebel says supporting the next generation of farmers is critical.

“We’re needing to build up the next generation of agriculture,” he says. “It’s hard for farmers to get started.”

Missouri Cattlemen’s Association president David Dick says his organization supported the beginning farmer legislation efforts this session.

“The average age of a farmer or rancher is nearing 60 years old, and less than 5% are 35 years old or younger,” he says. “If we do not repopulate the land with the next generation, I cannot even begin to describe the woes for our industry and our consumers.”

While the issue won’t immediately go away, Dick says this bill is a good start to address the problem.

“This bill is a huge victory, and we encourage Governor Parson to sign it without delay,” he says. “The work of our elected leaders on this legislation should not be taken for granted.”

The state legislature also passed legislation continuing and growing the biofuel incentive program, increasing the tax credit cap and removing apportionment language to give producers more flexibility.

“A big piece of biofuels is just making sure it’s available across the state,” Knaebel says. “… This helps retailers be able to offer higher ethanol blends. It’s good for retailers, and it’s good for consumers because they have more options at the pump.”

The legislature also updated the definition of “business income,” allowing for an income tax deduction for Schedule F filers.

In addition, the state passed legislation to help support water-borne commerce projects and approved flood-resiliency funds, providing money for long-term flood control structures. Knaebel says this is beneficial to farmers but also saw some support from urban areas that have faced flooding issues.

Infrastructure spending remains a key issue in Jefferson City, as the state looks to spend federal ARPA funds for infrastructure, as well as using state road and bridge funds. The state approved spending $2.3 billion of the federal funds for the project to begin widening Interstate 70 to three lanes both directions. The cramped section across the middle of the state plays an important role for agriculture, Henderson says.

“We move a lot of grain and a lot of product on I-70,” she says.

Henderson says using the federal money for that major project frees up more state money for rural highway and bridge work.

Knaebel says the state approved $100 million directly for maintenance of low-traffic routes in the state, which play a key role for agriculture.

Overall, Henderson says the Missouri General Assembly is supportive of agriculture.

“I think the majority of folks in Jefferson City, I think they understand how important agriculture is to our state,” she says.

Knaebel says agriculture is a topic that can sometimes bring different parts of the state legislature together.

“I’ll never say it’s easy to pass legislation, but it’s definitely refreshing that agriculture in Missouri is sometimes looked at as a common ground,” he says.