Iowa Finance Authority Beginning Farmer Loan Program (BFLP)

The Beginning Farmer Loan Program (BFLP) assists new farmers in acquiring agricultural property by offering loans at reduced interest rates.

The program may be used to assist in the purchase of agricultural land, depreciable machinery or equipment, breeding livestock or buildings. It may also be used to improve existing buildings or farmland but it cannot be used to refinance existing debt.

• Applicants must be a resident of Iowa and 18 years of age at the time of application.

• Have a net worth of no more than $833,000.

• 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.

Terms based on loan and loan type.

1. Complete Beginning Farmer Loan application with lender or seller.

2. Negotiate loan terms, including interest rate, length of loan, prepayment options, service fees and repayment schedule with lender or seller.

3. Submit application, financial statement, background letter, other required materials and nonrefundable $100 application fee to IADD by the first of the month.

4. The IADD Board will review the application at their monthly board meeting.

5. After final approval by the IFA Board, the loan can be closed (the closing fee is 1.5% of bond, with a minimum of $300). The total process takes about six weeks. During that time, the lender can provide interim financing, if necessary.

6. Please note: if the loan is for a confinement facility, feeding contracts must be on a per-head/per-day basis.

Application

• Iowa Beginning Farmer Resources