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Beginning Farmer Tax Credit Program

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 $682,000.
  • 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.

Terms

  • 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 allocated – 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 After 30 days, the application will be withdrawn.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 Agricultural Development Division (IADD)
    P.O. Box 7
    Adel, IA 50003
  • Beginning Farmer Tax Credit Application The 2020 application deadline was August 1. The 2021 application will be available in January 2021.

For inquiries about beginning farmer tax credits reach out to:

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