New Iowa Beginning Farmer Tax Credit

August 29, 2013
|
Roger McEowen

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: Iowa Beginning Farmer Tax Credit.pdf

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.

Other Items

  • 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 calculations 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:

Steve Ferguson
Iowa Agricultural Development Authority (IADA)
Ag Program Coordinator 515-281-6444
steve.ferguson@iowa.gov

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