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7/7/2026
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New law provides tax breaks to support small or urban farms
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STATE HOUSE – A new law sponsored by Rep. Michelle McGaw and Sen. Tiara T. Mack will encourage and sustain small and urban farms in Rhode Island by allowing them tax relief similar to what is provided to larger agricultural operations in the state.
The legislation (2026-H 7242, 2026-S 2827) exempts farms under five acres or within urban areas and their owner/operators from state sales taxes, real, tangible and personal property taxes and income taxes. The bill will help level the playing field for farms that are too small to qualify for the state’s farm, forest and open space tax incentives, which were enacted over three decades ago.
“Urban and small farms provide a multitude of benefits to our state, making fresh, healthy food available in people’s own neighborhoods, creating green spaces in places that need them and playing a key role in diversifying and strengthening our food supply chain. They are models of know-how and efficiency, because they survive by maximizing productivity in limited space and usually with minimal resources. They deserve the same tax benefits as other farms, particularly since they primarily serve hyperlocal needs,” said Representative McGaw (D-Dist. 71, Portsmouth, Tiverton, Little Compton).
Said Senator Mack (D-Dist. 6, Providence), “With this new law, we are adapting to the way farming is evolving in Rhode Island. Our state has some of the most expensive land in the nation to farm. We may not have a lot of industrial-size farms, but fortunately, there’s a growing community of very dedicated small-scale farmers who love what they do, who work hard to make it economically feasible, and who are providing healthy local food and so much more. Urban farmland and farmers are a critical part of our state’s food system, especially as families see grocery store prices rise. In communities like Providence, urban farmers grow culturally relevant foods, sustaining cultural connections from many continents and creating fresh food in food deserts. They are fostering connection – among neighbors who visit and buy their products and between those neighbors and the earth that sustains us. Supporting small and urban farms is supporting those valuable connections and cultivating a better quality of life in our neighborhoods.”
Rhode Island is home to about 80 urban farms, as well as about 120 farms that are smaller than five acres.
The law includes provisions to ensure the tax breaks are available only to farms that are actively being used for agricultural or horticultural purposes.
The legislation, which was approved by the General Assembly June 11 and signed into law June 19, was supported by the Rhode Island Food Policy Council, Farm Fresh Rhode Island, the Rhode Island League of Cities and Towns, the Rhode Island Association of Realtors, the Environment Council of Rhode Island, the Rhode Island Land Trust Council, Conservation Law Foundation, the Northern Rhode Island Conservation District, Eat Drink RI, Zero Waste Providence and numerous representatives of small farms.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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