Iowa Beginning Farmer Tax Credit
The Agricultural Assets Transfer Tax Credit is commonly referred to as the Beginning Farmer Tax Credit. The program is administered by the Iowa Agricultural Development Authority and began with the 2007 tax year. The Beginning Farmer Tax Credit Program was enacted by the Iowa legislature as an incentive to keep land in production agriculture, by allowing agricultural asset owners to earn tax credit for leasing their land to beginning farmers. The program includes tax credit for the leasing of agricultural land, depreciable machinery or equipment, breeding livestock, and buildings.
Important Adjustments to the Tax Credit Program Effective January 1, 2012!
- Maximum Net Worth will INCREASE from $300,000 to $343,000
- There will be a $50/year servicing fee on all new Tax Credit Projects to be collected at time of application with the $200 application fee.
- 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 * 3 years of servicing) = $350
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The application deadline for the Tax Credit Program will change from the 15th of the month to the 1st of the month
Deadline: 1st of the Month
(To go to the board meeting for that month; Must have in no later than December 1st to go to the December Board meeting and be eligible to receive a credit for that year)
*Make sure both the Beginning Farmer Application and the Asset Owner Application are completely filled out before submitting in order to prevent potential delays.
Tax Credit Summary
The Program Summary will be able to answer almost any question you have about the Beginning Farmer Tax Credit Program.
Tax Credit Request to Adjust Lease Terms
If for any reason during the life of the project you need to change the lease terms, this form will need to be completed and returned to our office with the $50 processing fee.
Crop Share Lease Information Form 
*This form is not required at application – Share projects use this form to submit harvest crop, month of harvest and number of acres harvested. This form needs to be completed on a yearly basis following harvest (after being accepted into the program) by those with share agreements only.
Please direct Beginning Farmer Tax Credit questions to:
Denise Ashley
Administrative Assistant
(515)281-6444
denise.ashley@iowa.gov