Excerpt from Rep. Ourth’s newsletter:
Iowans looking to start a career in farming will get a leg up under legislation advanced by me and my colleagues on the House Agriculture Committee.
House Study Bill 173, which advanced out of committee unanimously, doubles the tax credits available to beginning farmers from $6 million to $12 million annually. This bill, if passed, modifies qualifications and streamlines the process to better ensure that eligible Iowans get access to Iowa’s world class farmland.
The beginning farmer tax credit program is an incentive for Iowa landowners to rent land to beginning farmers. Under the program, the state issues tax credits to the landowner to offset their individual or corporate tax liability. The credit the landowner receives is based on the agreement with the beginning farmer depending upon whether the beginning farmer is paying cash rent or they have a commodity share agreement. Demand for the program has exceeded the supply of available credits, leaving beginning farmers unable to take advantage of the program.
The bill now moves to the Ways and Means committee for further consideration.