It's a dilemma faced by farmers wanting to cut back or even retire: Who will take over the farm or ranch if there's no son or daughter willing to do so?

An underused Nebraska tax credit program may be one option, especially now that it was tweaked and improved by the Nebraska Legislature in 2006. Amendments to the Beginning Farmer Tax Credit Act, originally passed in 1999, go into effect Jan. 1, 2007, and should make the program more attractive, says Marian Beethe at the Nebraska Department of Agriculture, the agency administering the program.

The program offers a tax credit to farmers or ranchers who help a beginning farmer get started in farming.

"A refundable Nebraska tax credit is given to the owner of agricultural assets as an incentive to rent or lease his or her land, machinery, livestock or livestock facilities for three years to a beginning farmers or livestock producer," says Beethe.

The rent can be based on cash rent, share-crop, even cow-calf leases.

Here's how the 2006 Legislature improved the program:

Beethe says the high cost of buying land is one reason beginning farmers or ranchers face difficulty getting started. "The tax credit provides an incentive to encourage ag asset owners to rent to beginning farmers. Renting a farm or livestock operation will help provide the experience and income necessary to qualify for other beginning farmer programs."

The program allows the owner to also serve as the mentor to the younger farmer.

Here are qualifications for the farm or livestock owner:

A qualified beginning farmer or livestock producer must:

For information, contact Beginning Farmer Program, Nebraska Department of Agriculture, P.O. Box 94947, Lincoln, NE 68509-4947, call (402) 471- 6890 or 1-800-446-4071, or go online at www.agr.ne.gov.