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New Iowa Beginning Farmer Tax Credit
- by Roger McEowen
Updated Augst 29, 2013
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.
For more information, visit the IADA website.
Important Adjustments to the Beginning Farmer Tax Credit Program (Effective January 1, 2013):
- Maximum Net Worth: $691,172
- Program Fee: $200 application fee plus $100 for each year of crop-share/flex lease (to be collected at time of application)
- Note: The additional amount is $50 for each year of a cash/flex lease.
- For crop share leases, acres will be allocated 50% to corn and 50% to soybeans, unless other crop acres are specifically identified in the lease for other crops.
- Flex leases will be calcuated using cash rent lease only with no additional credit calcuated based on the flex farms.
- All tax credit calcuations are to be completed by using the county historial average T-yield data with the price being the previous year's RMA fall price.
Please direct Beginning Farmer Tax Credit questions to:
Iowa Agricultural Development Authority (IADA)
Ag Program Coordinator 515-281-6444