Welcome
Obtaining enough capital to pursue a career in production agriculture can be a real challenge. But if you have set your horizons on owning and managing your own crop or livestock operation, the Iowa Agricultural Development Authority (IADA) may be able to lend a helping hand.
The IADA was established by the Iowa General Assembly in 1980 to provide financial assistance to Iowa’s grain and livestock producers. Operating expenses for the IADA are derived from modest application and service fees paid by program participants. The IADA also earns interest from a trust fund, but it does not receive any state tax dollars.
The Beginning Farmer Loan Program and Loan Participation Program help Iowa farmers purchase agricultural land, depreciable machinery or equipment, breeding livestock or buildings. The IADA loans may also be used to improve existing buildings or farmland.
The Beginning Farmer Tax Credit Program encourages owners of capital agricultural assets to lease them to Iowa’s qualifying beginning farmers. The program provides the agricultural asset owner a credit against Iowa income taxes owed.
| IADA Brochure 2011 Yearly MAPS Report |
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Tax Credit Harvest Reporting |
IADA News
Important Adjustments to the Beginning Farmer Loan Program
Effective January 1, 2012!
- Maximum Net Worth will INCREASE from $577,825 to $647,165
- Maximum loan/bond amount will INCREASE from $477,000 to $488,600
- Beginning Farmer Loan Program Closing Fee is 1.50% on the first $250,000 and 0.75% on any remaining amount over $250,000
- The application deadline for all program applications is the 1st of the Month
Important Adjustments to the Beginning Farmer Tax Credit Program
Effective January 1, 2012!
- Maximum Net Worth will INCREASE from $300,000 to $343,000
- Beginning Farmer Tax Credit Program Fee is a $200 application fee in addition to a $50/year servicing fee to be collected at time of application
Example: If you are submitting an application with a 3 year lease your fee to enter the program will be: $200 (Application fee) + $150 ($50 x 3 years of servicing) = $350
Beginning Farmer Loan Program
In 2010 our procedures changed so that BFLP Applications are now due on the 1st of the month instead of the 15th of the month. Due to this change, applications and the sale of the bond can be approved at the same meeting. The net result of this is the time to approve an application will be reduced to 20 – 25 days.
Loan Participation Program
Several banks have inquired as to using both the IADA participation loan and the FSA 5/45/50 beginning farmer loan program. Previously this was not possible as the IADA participation loan had a maximum 20 year amortization, while the FSA loan required a 30 year amortization on any companion financing. The IADA board has approved a 30 year amortization on IADA participation loans only when the FSA program is also utilized.
The median size farm has been updated.
Median Farm Size Limits (Effective February 4, 2009)
Median Farm Size Limits Map (Effective February 4, 2009)
Deadlines
| BFLP Application | 1st of the Month |
| BFLP & LPP Request to Change Loan Terms | 1st of the Month |
| Tax Credit Applications | 1st of the Month |
| Tax Credit Request to Adjust Lease Terms | 1st of the Month |
| Loan Participation Application | 1st of the Month |
last modified: 04/12/12