Iowa Beginning Farmer Tax Credit Program

An Iowa income tax credit for owners of agricultural land, equipment and buildings who lease those assets to a qualifying beginning farmer. Cash-rent leases earn a credit of 5% of the cash rent and crop-share leases earn 15%. Leases must run two to five years. The program is administered by the Iowa Agricultural Development Division (IADD) of the Iowa Finance Authority.

• The beginning farmer (tenant) must be a resident of Iowa and at least 18 years of age.

• Have a net worth of no more than $901,000.

• 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.

• The credit is claimed by the agricultural asset owner who leases to the beginning farmer.

• Lease must be for a minimum of two years but no more than five years.

• Cash rent leases: credit equals 5% of the cash rent; cash rent cannot be more than 30% above the average cash rent for the county according to the most recent ISU cropland survey.

• Crop share leases: credit is 15%.

Published amounts: For cash rent leases, the tax credit equals 5% of the cash rent. ... For crop share leases, the tax credit is 15%.

Applications are processed on a first-come/first-completed basis until August 1 or until the tax credit allocation is awarded. Completed applications are processed first; incomplete applicants have 30 days to supply missing documents before the application is withdrawn. Submit all materials in one packet to: Iowa Finance Authority, Attn: Iowa Agricultural Development Division (IADD), 1963 Bell Ave., Des Moines, IA 50315. The 2026 application period is closed; the 2027 application is expected early in 2027 (the 2026 application was announced in the January 28, 2026 IADD annual update).

Deadline text on the page: Applications will be accepted until the deadline of August 1, 2026, or until all the tax credit allocation has been awarded – whichever comes first. ... The 2026 Beginning Farmer Tax Credit application period is now closed.