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As Minnesota begins to turn green again, I can feel the anticipation of a new growing season. At Southern Minnesota Initiative Foundation (SMIF) we look forward to planting the seeds of lasting impact at Sprout, our annual spring event, and through Acres for Good, our farmland succession program.

Each year, we select a small town in our region to host Sprout. This year we will be at the National Ruby-Throated Hummingbird Center in Henderson. Sprout is an opportunity to grow connections, deepen our roots and share in the harvest of last year. Along with time to converse, we also invite our partners to speak and share information about the abundance of resources available through SMIF.

One of our loan clients, Emily Knudsen from Pleasant Grove Pizza Farm in Waseca, has attended Sprout multiple times. She recently shared, “Attending Sprout events has been invaluable for building relationships with other small business owners and industry experts. The connections I’ve made have provided insights, support and resources that have directly helped Pleasant Grove Pizza Farm grow and thrive in Southern Minnesota.” To learn more about Sprout, visit smifoundation.org/sprout.

Aside from our spring event, year-round we look for people who want to nurture their communities. SMIF’s Acres for Good program allows farm families to donate their land as a charitable gift. By doing this, donors are keeping wealth local, giving back to the community and safeguarding the legacy of their land.

How do the donations work and what impact do they yield? When you donate, SMIF will retain the land and keep it in production by renting to current and/or local tenants, keeping generated wealth local. On top of that, you get to choose local causes you care about to receive the rental income. While SMIF retains ownership of the land and pays local property taxes, your gift also provides an immediate charitable deduction while bypassing all capital gains taxes and creating a stable source of income.

What does it mean to give farmland as a gift? There are three options. You can give a gift during your lifetime, and you would get a charitable deduction on income tax. You can wait and give it in your will, and it would be released to SMIF upon your passing. Or you can opt for a retained life estate where you keep the right to farm the land until you pass and then it automatically becomes a charitable gift. If you are not ready to donate all of your tillable farmland, you can also select a portion of your property to donate.

Farmers can choose how they want to allocate their gift of land through this program. There are several options. For example, the benefit can go toward one of SMIF’s 33 Community Foundations which invest in their communities through grants and programs. From Harmony and Byron to Ellendale and St. James, SMIF has Community Foundations in every corner of its region.

Or, for a region-wide reach, farmers can allocate their gift toward SMIF’s general endowment, or SMIF’s specific funds which support youth, entrepreneurs and small towns in the region.

Another option is to set up a Donor Advised Fund to allocate resources to the donor’s specific interests such as a place of worship, an alma mater or a local charity. Whichever avenue, these are all ways to leave a legacy that will make a huge difference in the future of southern Minnesota – and doing it all without having your family farm sold.

Even a few acres can make a difference. To learn more about the Acres for Good program visit smifoundation.org/acresforgood or contact Alissa Oeltjenbruns, vice president of philanthropy and community vitality, at 507-214-7023 or alissao@smifoundation.org.

With commitment and the right conditions, we can cultivate new connections and help our communities prosper. I cannot wait to witness the harvest of the new season.

As always, I welcome your comments and questions. You can reach me at timp@smifoundation.org or 507-455-3215.