Shareholder limit for entity-owned agricultural property increased.

HF 1700 increases the maximum number of shareholders, members, or partners allowed in certain agricultural business entities from 12 to 20. This change directly affects family farm corporations, joint family farm ventures, limited liability companies, and partnerships that own agricultural property and qualify for special homestead tax classifications. The bill modifies Minnesota Statutes section 273.124 to allow these entities to include up to 20 qualifying individuals under the tax classification rules, rather than the previous limit of 12. The policy change takes effect for homestead applications in 2025 and later.