Owning and managing a crop or livestock operation can be a financial mountain not easy to climb. But making these types of dreams come true is a common occurrence for the Iowa Agricultural Development Division, a division of the Iowa Finance Authority.
Workshops are being offered in March by the Iowa Ag Development Division in cooperation with Iowa State University Extension county offices. The two-hour classes are for individuals interested in learning more about low interest loans for purchase of land, buildings and equipment; Iowa tax credits for landowners who lease to beginning farmers; and Iowa tax credits for farmers who hire a beginning farmer for custom work.
"Attending this workshop is a great way to learn firsthand about these different loan and tax credit options," says Ann Johanns, ISU Extension program specialist. "It's a great place to get immediate answers on specific questions relating to farm finances."
Two beginning farmer tax credit and loan classes scheduled for next week
• Monday, March 9, 2015 at 7:00 p.m. – Guthrie Activity Center, 209 State St., Guthrie Center. Register at iowafinanceauthority.gov/IADD, by Friday, March 6.
• Thursday, March 12, 2015 at 7:30 a.m. – Two Rivers Co-op, 109 South St., Pella. Register with Jaci Nunnikhoven, [email protected], 641-628-2383.
"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," says 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.
Iowa has several programs to help beginning farmers get started
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 speci?c programs, deadlines and how to apply can be found on the IADD website. 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. They are the Agricultural Assets Transfer Tax Credit and the Custom Hire Tax Credit. These tax credits are an incentive to lease to or custom hire a beginning farmer.
For more information: Operating expenses for the IADD are derived from modest application and service fees paid by program participants. The IADD also earns interest from a trust fund, but it does not receive any state tax dollars. For more information, visit IowaFinanceAuthority.gov/IADD.