"Act" means Iowa Code chapter 16.
"Agricultural asset" means agricultural land
located in this state, any agricultural improvements, depreciable agricultural
property, machinery, equipment, crops, or livestock.
"Agricultural development board"
or"IAD board" means the agricultural development board created
in Iowa Code section 16.2C and described in rule
265-44.1 (16).
"Agricultural improvement" means any
improvements, including buildings, structures or fixtures suitable for use in
farming if located on any size parcel of agricultural land.
"Agricultural land" means land located in Iowa
suitable for use in farming, any portion of which may include an agricultural
improvement, and which is or will be operated as a farm.
"Agricultural lease agreement"
or"agreement" means an agreement for the transfer of
agricultural assets from an eligible taxpayer to a qualified beginning farmer
as provided in Iowa Code section
16.79A.
"Application" means a completed instrument on
a form approved by IADD.
"Authority" means the Iowa finance authority
created in Iowa Code section
16.1A.
"Beginning farmer" means an individual,
partnership, family farm corporation, or family farm limited liability company,
with a low or moderate net worth that engages in farming or wishes to engage in
farming.
"BFLP" means beginning farmer loan
program.
"BFLP beginning farmer" means a beginning
farmer who also meets the requirements of a first-time farmer as defined in
Section 147(c) of the Internal
Revenue Code.
"BFTC" means beginning farmer tax credit
program.
"Bond purchaser" means any lender or any
person, as defined in Iowa Code section
4.1(20), who
purchases an authority bond under the individual agricultural development bond
program.
"Cash rent agreement" means an agreement
whereby operation of the agricultural asset is transferred via a fixed cash
payment per annum.
"Commodity share agreement" means an agreement
whereby operation of the agricultural asset is transferred via a risk-sharing
mechanism, whereby the agricultural asset owner receives a portion of the
production as payment for use of the agricultural asset.
"Eligible taxpayer" means a taxpayer who is
eligible to participate in the beginning farmer tax credit program, including
by meeting all the criteria provided in paragraph 44.6(1)"a."
"Farm" means a farming enterprise which is
generally recognized as a farm rather than a rural residence.
"Farming" means the cultivation of land for
the production of agricultural crops, the raising of poultry, the production of
eggs, the production of milk, the production of fruit or other horticultural
crops, grazing, the production of livestock, aquaculture, hydroponics, the
production of forest products, or other activities designated by the
authority.
"Flex lease agreement" means an agreement
whereby operation of the agricultural asset is transferred via a combination of
fixed cash payments and, at times, additional payment based on the production
or other variables.
"IADD" means the Iowa agricultural development
division of the Iowa finance authority.
"Lender" means any regulated bank, trust
company, bank holding company, mortgage company, national banking association,
savings and loan association, life insurance company, state or federal
governmental agency or instrumentality, or other financial institution or
entity authorized and able to make mortgage loans or secured loans in this
state.
"Low or moderate net worth" means a net worth
that does not exceed the maximum allowable net worth defined in this
rule.
"LPP" means loan participation program.
"LPP loan" means the "last-in/last-out" loan
participation requested by the lender from the authority.
"Maximum allowable net worth" means the
maximum allowable net worth for each calendar year, which shall be increased or
decreased from the previous year by an amount equal to the percentage increase
or decrease (September to September) in the United States Department of
Agriculture "Index of Prices Paid for Commodities and Services, Interest,
Taxes, and Farm Wage Rates" reported as of October 1 of the immediately
preceding calendar year. The maximum allowable net worth will be rounded to the
nearest thousand dollars. The authority will post the maximum allowable net
worth for each calendar year on its website atwww.iowafinanceauthority.gov.
"Net worth" means total assets minus total
liabilities as determined in accordance with generally accepted accounting
principles with appropriate exceptions and exemptions reasonably related to an
equitable determination of the net worth of the individual, partnership,
limited liability company or corporation. Assets shall be valued at fair market
value.
"Participated loan" means a loan or loans, any
portion of which is participated to the authority by the lender.
"Qualified beginning farmer" means a beginning
farmer who is eligible to participate in the beginning farmer tax credit
program by meeting the criteria set forth in paragraph
44.6(1)"b."
"Total assets" means all assets including but
not limited to cash, crops or feed on hand, livestock held for sale, breeding
stock, marketable bonds and securities, securities not readily marketable,
accounts receivable, notes receivable, cash invested in growing crops, net cash
value of life insurance, machinery, equipment, cars, trucks, farm and other
real estate including life estates and personal residence, value of beneficial
interest in a trust, government payments or grants, and any other
assets.
"Total assets" shall not include items used for personal,
family or household purposes by the applicant; but in no event shall any
property be excluded, to the extent a deduction for depreciation is allowable
for federal income tax purposes. All assets shall be valued at fair market
value by the lender. The value shall be what a willing buyer would pay a
willing seller in the locality. A deduction of 10 percent may be made from fair
market value of farm and other real estate.
"Total liabilities" means all liabilities
including but not limited to accounts payable, notes or other indebtedness
owed, taxes, rent, amount owed on any real estate contract or real estate
mortgage, judgments, accrued interest payable, and any other liabilities.
Liabilities shall be determined on the basis of generally accepted accounting
principles.
In only those cases where the liabilities include an amount for
deferred tax liability that causes the applicant's net worth to change from
exceeding the maximum allowable net worth to an amount no greater than the
maximum allowable net worth, the applicant is required to have a certified
public accountant prepare the financial statement and provide supporting
calculations and documentation acceptable to the board.
"USDA" means the United States Department of
Agriculture.
"USDA-NASS" means the United States Department
of Agriculture's National Agricultural Statistics Service.
