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 2012 Annual MAPS Report |
IADA News
2013 NARRC and NCOSAFP Joint Conference & Optional Tour
The Iowa Agricultural Development Authority is honored to be hosting the first-ever joint National Association of Rural Rehab Corporations (NARRC) and National Council of State Agricultural Finance Programs (NCOSAFP) Conference August 11-14, 2013.
The Iowa Finance Authority (IFA) is assisting us with processing conference registrations.
- Click on this link Registration and then click on “2013 NARRC and NCOSAFP Joint Conference & Optional Tour” for conference and pre-conference details.
- Please note: there are separate registration fees for the Joint Conference ($285) and the Optional Tour ($85).
- Please read through this information and find the conference registration link “To register for this event” at the very bottom of the conference details.
1. Complete and pay your conference registrations by July 1 –
$285 before July 1 and $325 after July 1.
- You can either pay by credit card or check: all checks need to be received by July 15.
- Cancellations will not be accepted after July 15.
- Once you have completed your conference registration, you should receive a confirmation; please print and bring it to the conference.
2. Make your hotel reservations by July 1 – Renaissance Savery Hotel (Group Code: nrrnrra) - due to the Iowa State Fair being held during our conference, our block of rooms will be released July 1.
Important Adjustments to the Beginning Farmer Loan Program
Effective January 1, 2013!
- Maximum Net Worth will INCREASE from $647,165 to $691,172
- Maximum loan/bond amount will INCREASE from $488,600 to $501,100
- 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 Loan Participation Program
Effective January 1, 2013!
- Maximum Net Worth will INCREASE from $300,000 to $400,000
- The interest rate is being reduced to match the lowered BFLP rate proposed by the financial institution, or if the participation is done without a BFLP project, the interest rate will be a fixed 3.50%
- Previously, a bank needed to provide a bridge loan until the IADA funds were received to purchase IADA’s portion of the participation; with the assistance of the Iowa Treasurer’s Office, the bank will be able to receive IADA’s participation funds the same day as the closing – no bridge loan will be needed.
Important Adjustments to the Beginning Farmer Tax Credit Program
Effective January 1, 2013!
- Maximum Net Worth will INCREASE from $343,000 to $366,324
- Application fee for crop share and flex lease applications will be increased to $200 for the application and $100 for each year of the lease to be collected at time of application
- Example: If you are submitting an application with a 5 year lease your fee to enter the program will be: $200 (Application fee) + $500 ($100 x 5 years of servicing) = $700
- Application fee for cash rent applications will remain unchanged at $200 for the application and $50 for each year of the lease to be collected at time of application
- Example: If you are submitting an application with a 5 year lease your fee to enter the program will be: $200 (Application fee) + $250 ($50 x 5 years of servicing) = $450
- On all crop share and flex agreements all acres will be allocated with 50% to corn and 50% to soybeans, unless other crop acres are specifically identified in the lease for other crops – lease will be the number of acres consistently used for the entire term of this tax credit project.
- All tax credit calculations will be completed with the respective county’s historical average T-yield data and the price will be the previous year’s RMA fall price
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 (Beginning Farmer Loan Program) Application | 1st of the Month |
| LPP (Loan Participation Program) Application | 1st of the Month |
| BFLP & LPP Request to Change Loan Terms | 1st of the Month |
| BFTC (Beginning Farmer Tax Credit) Application | 1st of the Month |
| BFTC (Tax Credit) Request to Adjust Lease Terms | 1st of the Month |
last modified: 02/1/13