Iowa Administrative Code › Agency 265 - Iowa Finance Authority › Chapter 44 - Iowa Agricultural Development Division › Rule 265-44.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
"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
				at
www.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.