(DES MOINES)—Today Dawn Pettengill (R-Mount Auburn) supported amendment H-8484 to Senate File 2380, a bill that dealt with changes to Iowa’s tax credits. The Iowa Senate initially passed the legislation which would reduce the current $6 million cap of the beginning farmer tax credit to $3 million. Under amendment H-8484, that money would be restored.
 
“Farming and agriculture are the lifeblood of the Iowa economy. The beginning farmer tax credit has helped countless families across the state to allow retiring farmers the opportunity to transfer their land to the next generation,” said Pettengill. “This program is needed now more than ever to help establish the next generation of family farmers.”
 
The beginning farmer program requires the landowner and beginning farmer to enter into a minimum of two year and maximum of five year lease when entering the program. Therefore, when an application is approved, there is an ongoing commitment for several years following the approval. Since 2007, Iowa Agriculture Development Authority has issued a total of 1303 tax credit certificates that have helped over 600 beginning farmers to get into farming that otherwise would not have been able to. 
 
The program has grown steadily since its inception in 2007 and an anticipated $3.5 million will be approved in 2010, $4.5 million in 2011 & $5.5 million in 2012. Therefore, capping this program at $3 million will bring this program to a grinding halt.
 
The amendment was accepted and will protect the vitality of the beginning farmer tax credit program.
 
The bill will now be sent back to the Senate for consideration.