January 21, 2021
2021 Beginning Farmer Program Updates
Updates for the Iowa Finance Authority Beginning Farmer Programs can be found below.
BEGINNING FARMER LOAN PROGRAM

2021 Maximum Loan Amounts:
  • Land: $558,000
  • Farm improvements and new depreciable property: $250,000
  • Used depreciable property: $62,500

Program Requirements
  • Applicants must be a resident of Iowa and 18 years of age.
  • Have a net worth of no more than $686,000.
  • Have sufficient education, training or experience for the anticipated farm operations.
  • Have access to adequate working capital, equipment and other items that are necessary to operate the farm.
  • Be the owner/operator.
  • Own no more land than 30% of the county median acres.
  • There is no restriction on off-farm income.

For more program information visit the Beginning Farmer web page.
LOAN PARTICIPATION PROGRAM

2021 Interest Rate: 3.25%

Program Requirements
  • Applicants must be a resident of Iowa and 18 years of age.
  • Have a net worth of no more than $686,000.
  • Have sufficient education, training or experience for the anticipated farm operations.
  • Have access to adequate working capital, equipment and other items that are necessary to operate the farm.
  • Be the owner/operator.
  • Have off-farm income of no more than 50% of their projected total gross income.
  • Current Ratio: Cannot be less than 1.1 without guaranteed source of repayment.
  • Debt to Asset Ratio: Cannot exceed 80% without guaranteed source of repayment.
  • Debt Service Coverage: Cannot be less than 120% without guaranteed source of repayment.
  • Corporations, Partnerships, LLCs are eligible but the beginning farmer must be listed as a co-borrower.

For more program information please visit the Beginning Farmer web page.
BEGINNING FARMER TAX CREDIT PROGRAM

2021 Beginning Farmer Tax Credit (BFTC) applications are now being accepted. Applications will be accepted until August 1, 2021 or until all of the tax credit allocation has been awarded.

The BFTC Application can be found on the Beginning Farmer Resource page under the Beginning Farmer Tax Credit section.

Program Requirements
  • Applicants must be a resident of Iowa and 18 years of age.
  • Have a net worth of no more than $686,000.
  • Have sufficient education, training or experience for the anticipated farm operations.
  • Have access to adequate working capital, equipment and other items that are necessary to operate the farm.
  • Be the owner/operator.
  • There is no restriction on off-farm income.
Please contact the Iowa Agricultural Development Division Team with questions.