Iowa Beginning Farmer Loan Participation Program

A state participation loan that acts as the down payment for beginning farmers buying farmland, machinery, equipment, breeding livestock or buildings. IADD takes a last-in/last-out participation in the participating bank's loan, covering up to 30% of the purchase price or $200,000, whichever is less, at a 2026 rate of 3.50%. It can be combined with the Beginning Farmer Loan Program.

• Resident of Iowa and 18 years of age.

• Net worth of no more than $901,000.

• Sufficient education, training or experience for the anticipated farm operations.

• Access to adequate working capital, equipment and other items necessary to operate the farm.

• Be the owner/operator.

• Off-farm income of no more than 50% of projected total gross income.

• Current ratio not less than 1.1, debt-to-asset ratio not over 80%, and debt service coverage not less than 120%, unless there is a guaranteed source of repayment.

• Corporations, partnerships and LLCs are eligible, but the beginning farmer must be listed as a co-borrower.

• Maximum loan: 30% of purchase price or $200,000, whichever is less.

• Closing fee: 1.50% of the IADD participation loan; $300 minimum.

• 10-year terms: amortized over 20 years for land purchases or 12 years for facilities, with a balloon at 10 years.

• 2026 interest rate: 3.50% (reviewed annually by the IADD board).

• Application fee: $100.

Published amounts: Maximum Loan: 30% purchase price or $200,000, whichever is less. 2026 Interest Rate: 3.50%

1. Complete the Loan Participation application with your lender.

2. Submit the completed application and the $100 application fee to the IADD office by the first of the month.

3. The IADD Board reviews the application; if approved, a Conditional Commitment to Participate is sent to the lender.

4. After the conditional commitment is completed, the loan may be closed and the lender continues to service it.

Deadline text on the page: Submit the completed application and the $100 application fee to the IADD office by the first of the month.