Documented fit, limitations, and questions to ask

Documented fit
Strongest on agriculture specialization and published eligibility criteria; published cost information is limited in reviewed sources.
Why it appears
Depreciable machinery or equipment is an expressly eligible use of proceeds. Source: Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority, Iowa Code section 16.75 - Beginning farmer loan program (Iowa Code 2026).
Limitations
  • Eligibility-limited to Iowa residents buying Iowa-located property; not a general commercial financing option, and it cannot refinance existing debt
  • A lower limit applies to used depreciable property ($62,500) than to new depreciable property ($250,000)
  • Loan term length, payment frequency, purchase channels, and a specific APR are Unknown from reviewed sources
Evidence freshness
Confirmed ; standard evidence on a 180-day refresh (next review by ).
Next questions to ask
  • What interest rate or APR would apply to a purchase like mine, and is it fixed or variable?
  • What repayment term lengths are available for this type of equipment?
  • Can I finance a dealer, auction, or private-party purchase, or only specific channels?

Beginning Farmer Loan Program (Aggie Bond)

Statutory eligibility requires the beginning farmer to be an Iowa resident and the depreciable agricultural property to be located in Iowa; administered by the Iowa Agricultural Development Division under the Iowa Finance Authority.

Rates not found
Provider type
government program
Product structures
loan, government supported
Purchase channels
Unknown from reviewed sources
Equipment condition
new, used
Equipment scope
other
Amount range
Up to $250,000
Term range
Unknown from reviewed sources
Payment frequencies
Unknown from reviewed sources
Application modes
local office
Requirements published
Yes, in part

Evidence-backed strengths

  • Depreciable machinery or equipment is an expressly eligible use of proceeds
  • Provides below-market financing through federal tax-exempt bonds, with core eligibility and dollar limits published
  • State Aggie Bond program routed through local lenders, distinct from the federal USDA FSA entry

Documented limitations

  • Eligibility-limited to Iowa residents buying Iowa-located property; not a general commercial financing option, and it cannot refinance existing debt
  • A lower limit applies to used depreciable property ($62,500) than to new depreciable property ($250,000)
  • Loan term length, payment frequency, purchase channels, and a specific APR are Unknown from reviewed sources

Supported claims

Depreciable machinery or equipment is an expressly listed eligible use of loan proceeds, alongside agricultural land, breeding livestock, and buildings.

Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority, Iowa Code section 16.75 - Beginning farmer loan program (Iowa Code 2026)

The program provides below-market financing, described as interest rates typically 20 to 25 percent below prevailing market rates.

Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority

Loans are financed by participating lenders through the issuance of federal tax-exempt bonds by the Iowa Finance Authority.

Iowa Finance Authority Programs | Beginning Farmer Center (Iowa State University Extension)

Eligibility requires Iowa residency, minimum age 18, net worth no more than $901,000, and owning no more land than 30 percent of county median acres; the loan cannot be used to refinance existing debt.

Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority, Iowa Finance Authority Programs | Beginning Farmer Center (Iowa State University Extension)

Published bond limits are $250,000 for new depreciable property and improvements and $62,500 for used depreciable property, plus $682,700 for agricultural land.

Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority, Iowa Finance Authority Programs | Beginning Farmer Center (Iowa State University Extension)

Iowa Code section 16.75 authorizes the program and requires the borrower to be a state resident, the property to be located in Iowa, and the borrower to materially and substantially participate in farming.

Iowa Code section 16.75 - Beginning farmer loan program (Iowa Code 2026)

Loans are originated through participating local lenders, with a nonrefundable $100 application fee and a closing fee of 1.5 percent of the bond (minimum $300).

Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority

Source evidence and review status

Provider-authored claims are labeled by source and should be verified before relying on them. Last substantive review: .

  1. Beginning Farmer Loan Program | Iowa Economic Development & Finance Authority government source · observed 2026-07-12 · current
  2. Iowa Finance Authority Programs | Beginning Farmer Center (Iowa State University Extension) independent source · observed 2026-07-12 · current
  3. Iowa Code section 16.75 - Beginning farmer loan program (Iowa Code 2026) regulator source · observed 2026-07-12 · current

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