“Whether you’re new to farming or want to start your own farming operation, the Iowa Agricultural Development Division is a creative source of capital,” said Steve Ferguson, Iowa Ag program specialist. “We’re ready to help with the financing challenges of beginning farming through reduced interest rate loans or Iowa tax credits; we have a program to suit your needs.”
To qualify for the programs, applicants must be a resident of Iowa and at least 18 years of age. The maximum net worth limit is set each year, and for 2015 it is $703,844. Beginning farmers also must have sufficient training as well as access to working capital, farm machinery, livestock and agricultural land.
The IADD (formerly Iowa Ag Development Authority) was established by the Iowa General Assembly in 1980 to provide financial assistance to Iowa’s grain and animal producers with several programs designed to assist beginning farmers.
Details on specific programs, deadlines and how to apply can be found on the IADD website at: http://www.iowafinanceauthority.gov/IADD. Programs available include:
- Beginning Farmer Loan Program — assists new farmers in acquiring agricultural property by offering financing at reduced interest rates.
- Loan Participation Program — assists low income farmers to secure loans and make down payments.
- Beginning Farmer Tax Credit Programs — IADD has two tax credit programs to assist beginning farmers – Agricultural Assets Transfer Tax Credit and Custom Hire Tax Credit. These tax credits are an incentive to lease to or custom hire a beginning farmer.
Source:iastate.edu