State Ag Department announces tax credit programs

The Missouri Agricultural and Small Business Development Authority is now accepting applications for tax credit programs to benefit the state’s meat processors and specialty crop producers.

“We are excited to support two valuable aspects of Missouri agriculture,” Missouri Department of Agriculture Director Chris Chinn said in a news release. “The availability of local meat processing services is vital to the success of livestock producers across the state. More processing capacity in Missouri helps local economies through increased livestock feed and farm supply sales and offers an additional revenue stream to farmers and ranchers.”

The Meat Processing Facility Investment Tax Credit program provides a tax credit to meat processors who invest in modernizing or expanding their facility through purchasing equipment, improving their existing facility or constructing a new one. Meat processors may receive a tax credit of up to 25% of eligible expenses, not to exceed $75,000 per facility per year, according to the release.

MDA spokesperson Christi Miller said via email applications for investments made in 2022 must be submitted no later than April 1, 2024. Meat processors seeking tax credits for 2023 must submit applications by Nov. 1, 2024. The program started in 2018, according to Springfield Business Journal archives.

She said Springfield-based International Dehydrated Foods Inc. and Fair Grove-based Turner Processing LLC were among 16 state meat processing facilities for which MASBDA issued tax credits last year. The tax credit amounts for the two local facilities were not available by deadline.

The Specialty Agricultural Crops Loan program authorizes a tax credit to a lender in lieu of a family farmer paying the first year’s interest payment on a loan for specialty crop resources. In the new program, a family farmer may borrow up to $35,000 to purchase farming resources, including seeds or seedlings, soil amendments, irrigation equipment, season extension equipment and planting equipment. Program guidelines contain a full list of eligible items.

“The production of specialty crops is an expanding aspect of Missouri agriculture,” MASBDA Executive Director Jill Wood said in the release. “From orchards and berry farms in rural Missouri to the growing interest in urban agriculture and increasing the availability of fresh produce in those areas, producers will benefit from this new opportunity.”

Miller said applications are accepted on an ongoing basis.

Full program information and applications are available at the state Department of Agriculture’s website.