Beginning Farmer Loan Program
The Iowa Beginning Farmer Loan Program (BFLP) was established in 1981 to assist new farmers in acquiring agricultural property. Beginning Farmer Loans are financed by participating lenders or contract sellers with the issuance of federal tax-exempt bonds offered by the IADA. Interest received on contract sales or direct loans by individuals is also exempt from state income taxes. The tax-exempt interest income earned by lenders and contract sellers enables them to charge the beginning farmers a lower interest rate.
Exciting Changes to Assist Your Beginning Farmer Customers
Significant changes and improvements to the Beginning Farmer Loan Program have recently been passed by the U.S. Congress and the Iowa Legislature. These changes will allow more aspiring beginning farmers to qualify for the program and enhances the guidelines to reflect today’s agriculture. The maximum net worth and the maximum bond amount are both tied to an index that will change each January 1st going forward. Please watch for these changes and other program enhancements.
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.
BFLP Sample Application
Please see this sample application for assistance in filling out your BFLP application.
BFLP Program Summary
The Program Summary will be able to answer almost any question you have about the BFLP Loan Program.
BFLP & LPP Request to Adjust Loan Terms or Conditions
If for any reason during the life of the loan you need to change the loan terms, this form will need to be completed and returned to our office with the $100 processing fee.
Median Farm Size Limits Effective February 4, 2009
Cannot have owned more land than 30% of the median farm size
Aggie Bond Interest Rate Pricing
The tax-exempt interest income earned by the lenders/contract sellers enables them to charge the beginning farmer a lower interest rate. This will help you determine what the interest rate pricing should be.
Please direct Beginning Farmer Loan Program questions to:
Tammy Nebola
Program Planner
515-281-6444
tammy.nebola@iowa.gov