Terms defined in SDCL 1-16B-1 have the same meaning when used in this article. In addition, terms used in this article mean:

1. (1) "Agricultural improvements," any improvements, buildings, structures, or fixtures suitable for use in farming which are located on agricultural land, including the single-family dwelling located on agricultural land that is or will be occupied by the beginning farmer and any structure attached to or incidental to the use of the building;
2. (2) "Agricultural land," land that is suitable for use in farming and is or will be operated as a farm;
3. (3) "Bond purchaser," any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity, other than a participating lender, that purchases an authority bond under the program in connection with a contract sale or loan to the beginning farmer;
4. (4) "Commissioner," the commissioner of the Governor's Office of Economic Development;
5. (5) "Depreciable agricultural property," personal property suitable for use in farming for which an income tax deduction for depreciation or cost recovery is allowable in computing federal income tax under 26 U.S.C. § 144(a)(11)(B) (May 1, 2023), and which is qualified for financing with tax-exempt bonds pursuant to 26 U.S.C. § 144 (December 31, 2024);
6. (6) "Eligible applicant," an individual who is a first-time farmer, as defined in 26 U.S.C. § 147(c)(2)(c) of the Internal Revenue Code (December 31, 2024), who satisfies all of the criteria contained in SDCL subdivision 1-16B-1(3) and this article relating to recipient eligibility, and who operates or will operate a farm;
7. (7) "Farm," a farming enterprise that is recognized in the community as a farm rather than a rural residence;
8. (8) "Net worth," total assets minus total liabilities as determined in accordance with generally accepted accounting principles with exceptions and exemptions reasonably related to an equitable determination of the beginning farmer's net worth;
9. (9) "Participating lender," any lender that purchases an authority bond under the program;
10. (10) "Program," the beginning farmer bond program;
11. (11) "Project," a description of the intended use of the loan proceeds; and
12. (12) "Qualified purpose," agricultural land or depreciable agricultural property.

Source: 22 SDR 97, effective January 22, 1996; 23 SDR 91, effective December 9, 1996; 35 SDR 67, effective September 30, 2008 ; SL 2019, ch 235, § 37 and 38, effective April 14, 2019; 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16 B - 70 .

Law Implemented: SDCL 1-16B-1 (3), 1-16B-57 .

Prior versions effective: 2019-04-14, 2008-09-30.