Senate committee hears family-farm expansion bill, lays it over for omnibus

Senate File 7-55, a bill to increase the maximum number of family members eligible under a family farm ownership provision from 12 to 18, was presented Wednesday and laid over for omnibus consideration after constituency testimony.

Senator Anderson introduced the bill as a refile of language from 2024 and said it aims to allow larger families to include more relatives in farm ownership without triggering adverse tax consequences under current state law. "We're trying to do estate planning and getting it into all these various family members, but this prohibits us from doing so because our taxes would rise," testified Don (Dan) Schiefelbein, a constituent who described a multigenerational family farm near St. Cloud and outlined the family's size and succession concerns.

Schiefelbein described a scenario where moving from 12 to 13 participants could eliminate the preferential tax treatment they currently rely on, creating a sharp cliff in estate-planning outcomes. The Minnesota Farm Bureau and Minnesota Farm Bureau representatives spoke in support, saying the change would help families retain farms and encourage generational transfer. "Minnesota Farm Bureau really values... making sure he's not essentially penalized for having so many people in his family who want to be a part of the operation," Hunter Peterson testified.

Committee members thanked the witnesses and expressed support; Senator Putnam offered a lighthearted remark and indicated support. Action: Senate File 7-55 will be laid over for consideration in the omnibus bill.

The bill does not change other policy provisions relating to the family farm mechanism; it only adjusts the numeric cap. Sponsors said the change is intended to remove a barrier to multi-generational succession planning for larger agricultural families.