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Beginning Farmer Tax Credit Program

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Continuing Iowa’s Rich Farming Tradition

The Beginning Farmer Tax Credit Program provides an Iowa tax credit for agricultural asset owners to lease their land, equipment and/or buildings to beginning farmers.

Eligibility Requirements

  • Applicants must be a resident of Iowa and 18 years of age.

  • Have a net worth of no more than $737,000.

  • Have sufficient education, training or experience for the anticipated farm operations.

  • Have access to adequate working capital, equipment and other items that are necessary to operate the farm.

  • Be the owner/operator.

  • There is no restriction on off-farm income.


  • Lease must be for a minimum of two years but no more than five years, and must include land.

  • For cash rent leases, the tax credit equals 5% of the cash rent. The cash rent cannot be more than 30% above the average cash rent for the county according to the most recent ISU cropland survey.

  • For crop share leases, the tax credit is 15%.

Application Process

Applications are processed on first-come/first-completed basis.

  • Applications will be accepted until August 1, or until all the tax credit allocation has been awarded – whichever comes first.

  • Completed applications will be given preference over incomplete applications and will be processed first.

  • Applicants submitting incomplete applications will be notified and will have 30 days to correct and/or submit all missing documents. After 30 days, the application will be withdrawn.

  • Submit all materials in one packet to:
    Iowa Finance Authority
    Attn: Iowa Agricultural Development Division (IADD)
    1963 Bell Ave.
    Des Moines, IA 50315

  • Beginning Farmer Tax Credit Application APPLICATION

For inquiries about beginning farmer tax credits reach out to:

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