You are here: Home > Taxation > Legal Articles

New Iowa Beginning Farmer Tax Credit

- by Roger McEowen

Updated February 2009

Beginning in 2007, a new credit is available for persons that enter into qualified arrangements with a "beginning farmer." This provision can have the potential to entirely eliminate Iowa tax for individuals that lease farm property to a beginning farmer for several years. The attachment explains the new credit with an example of its potential benefit (pdf). This attachment contains the required forms that must be completed and submitted to the Iowa Ag Development Authority for the credit to be claimed (pdf).

For more information, visit the IADA website.

Important Adjustments to the Beginning Farmer Loan Program Effective January 1, 2009!

• Maximum Net Worth Increases from $500,000 to $600,000
• Maximum loan/bond amount increases from $450,000 to $469,200

Please direct Beginning Farmer Tax Credit questions to:

Amber Hill
Iowa Agricultural Development Authority (IADA)
Ag Program Coordinator
515-281-6444
amber.hill@iowa.gov