Beginning Farmer Tax Credit Creates Opportunities for Landowners and New Producers
DES MOINES, Iowa (May 21, 2019) – Iowa Secretary of Agriculture Mike Naig released the following statement in response to Gov. Kim Reynolds signing HF768, the Beginning Farmer Tax Credit bill, into law today.
“I want to thank Gov. Reynolds for signing and legislature for passing this important legislation that supports farmers who are just starting out,” said Secretary Naig.
“The new law expands the Beginning Farmer Tax Credit to allow more individuals to participate. This is a great opportunity for existing landowners to earn tax credit and help new farmers establish their own operations.”
About the Beginning Farmer Tax Credit
- Under Chapter 16 of Iowa code, a “beginning farmer” is an individual, partnership, family farm corporation or family farm LLC with a low or moderate net worth that engages in farming or wishes to engage in farming.
- Cash rent, commodity share and flex leases to beginning farmers qualify for the credit, which is equal to 5 percent and 15 percent, respectively, of the lease payment.
- Up to $12 million in tax credits will be available each year to landowners who lease to beginning farmers.
- The average Iowa farmer is 57 years old, there are more than 86,000 farms in Iowa, and we have less than 15,000 young producers, according to the 2017 Census of Ag.