Ashley Jared Communications Director Iowa Finance Authority
Acquiring enough money to pursue a profession in manufacturing farming may be challenging, however the Iowa Agricultural Development Division (IADD) has programs made to help Iowa starting farmers in conquering these hurdles. The IADD has Iowa Starting Farmer Loan and Tax Credit products to help brand new farmers in acquiring agricultural home by providing funding at reduced interest levels and Iowa income tax credits to landowners who lease to starting farmers.
Starting Farmer Loan System
The Iowa Beginning Farmer Loan Program (BFLP) assists brand new farmers in acquiring property that is agricultural equipment, breeding livestock or farm improvements. Starting Farmer Loans are financed by participating loan providers or agreement vendors utilizing the issuance of federal tax-exempt bonds provided by the IADD. Interest received in contract product sales can be exempt from state taxes. The interest that is tax-exempt acquired by loan providers and agreement sellers allows them to charge the start farmers a lesser rate of interest. Starting farmer loans typically carry interest levels roughly 25 % below prevailing market prices. Applications are due the initial of every thirty days.
Loan Participation Program
The Loan Participation Program (LPP) assists low-income farmers in securing loans and making down re payments. IADD’s involvement can help augment the borrower’s down re payment and as a result assisting a farmer secure a loan. The lender’s risk is paid off considering that the IADD’s place when it comes to loan involvement is “last-in/last-out”.Read More »Beginning Farmer Products Available through the Iowa Agricultural Developing Division