2026 Annual Updates: Iowa Agricultural Development Division Beginning Farmer Programs |
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We know that access to capital and land are two of the biggest hurdles beginning farmers face. Our programs are designed to help overcome both.
The Beginning Farmer Loan Program (BFLP) and the Loan Participation Program (LPP) provide affordable access to capital. The Beginning Farmer Tax Credit Program (BFTC) helps increase access to land by offering incentives to asset owners who lease to beginning farmers.
Together, these programs give beginning farmers more opportunities to get established and build a stronger future in Iowa agriculture.
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The net worth maximum has increased from $820,000 to $901,000 for all IADD Beginning Farmer Programs.
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Iowa offers a state income tax credit to asset owners as an incentive to lease their agricultural land, equipment, buildings, or livestock to a beginning farmer.
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- 2026 BFTC applications are now available on the Iowa Finance Authority (IFA) website.
- Deadline: Applications for leases beginning in 2026 are due by August 1.
- For those currently in the program: 2025 Certificates have been mailed out, asset owners please contact our office if there is an issue with your certificate or you did not receive it.
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This program assists beginning farmers in acquiring agricultural land, machinery, equipment, buildings, breeding livestock and/or make farm improvements at reduced interest rates. Beginning farmer loans typically carry interest rates of 20 to 25 percent below prevailing market rates.
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- The maximum bond amount has increased to $682,700.
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The BFLP FAQ on the IFA website is a good place to learn more.
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This program assists beginning farmers by providing a participation loan that acts as the down payment for agricultural purchases through a last in/last out participation with the bank.
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The 2026 LPP interest rate is 3.50%.
- The rate will continue to be reviewed annually by the Iowa Agricultural Development Division (IADD) board.
- The LPP FAQ on the IFA website explains how this program works with bank financing.
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Share your Farming Story – Inspire Others and Get Paid!
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We're seeking a limited number of beginning farmers to share their stories of how IFA's Beginning Farmer programs made a difference in their lives. Selected storytellers will receive $400 as a thank-you for their time and participation which includes submitting:
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- Two short videos (under one minute)
- Five photos
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Permission for IFA to use your story in promotional efforts
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A brief pre-application is required.
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You can find program details, FAQs, and application materials on the program overview document or the Iowa Finance Authority website. Please reach out to the Iowa Agricultural Development Division Team with any questions.
Contact: IADD@iowafinance.com
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