175.2 - DEFINITIONS.
175.2 DEFINITIONS.
1. As used in this chapter, unless the context otherwise
requires:
a. "Agricultural assets" means agricultural land, depreciable
agricultural property, crops, or livestock.
b. "Agricultural improvements" means any improvements,
buildings, structures or fixtures suitable for use in farming which
are located on agricultural land. "Agricultural improvements"
includes a single-family dwelling located on agricultural land which
is or will be occupied by the beginning farmer and structures
attached to or incidental to the use of the dwelling.
c. "Agricultural land" means land suitable for use in
farming.
d. "Agricultural producer" means a person that engages or
wishes to engage or intends to engage in the business of producing
and marketing agricultural produce in this state.
e. "Authority" means the agricultural development authority
established in section 175.3.
f. "Bankhead-Jones Farm Tenant Act" means the Act cited as 50
Stat. 522 (1937), formerly codified as 7 U.S.C. § 1000 et seq.,
repealed by Pub. L. No. 87-128 (1961).
g. "Beginning farmer" means an individual, partnership,
family farm corporation, or family farm limited liability company, as
defined in section 9H.1, with a low or moderate net worth that
engages in farming or wishes to engage in farming.
h. "Bonds" means bonds issued by the authority pursuant to
this chapter.
i. "Conservation farm equipment" means the specialized
planters, cultivators, and tillage equipment used for reduced tillage
or no-till planting of row crops.
j. "Depreciable agricultural property" means personal
property suitable for use in farming for which an income tax
deduction for depreciation is allowable in computing federal income
tax under the Internal Revenue Code as defined in section 422.3.
k. "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 by rules subject to chapter
17A.
l. "Lending institution" means a bank, trust company,
mortgage company, national banking association, savings and loan
association, life insurance company, any state or federal
governmental agency or instrumentality, including without limitation
the federal land bank or any of its local associations, or any other
financial institution or entity authorized to make farm operating
loans in this state.
m. (1) "Low or moderate net worth" means a person's
aggregate net worth calculated as a designated amount established
pursuant to rules adopted by the authority and effective for one
year. The designated amount shall be established by January 1 of
each year by adjusting the designated amount effective on the
previous December 31. The authority shall establish the designated
amount in accordance with the "prices paid by farmers index" as
compiled by the United States department of agriculture.
(2) "Low or moderate net worth" as applied to the following
persons means:
(a) For an individual, an aggregate net worth of the individual
and the individual's spouse and minor children of less than the
designated amount.
(b) For a partnership, an aggregate net worth of all partners,
including each partner's net capital in the partnership, and each
partner's spouse and minor children of less than twice the designated
amount. However, the aggregate net worth of each partner and that
partner's spouse and minor children shall not exceed the designated
amount.
(c) For a family farm corporation, an aggregate net worth of all
shareholders, including the value of each shareholder's share in the
family farm corporation, and each shareholder's spouse and minor
children of less than twice the designated amount. However, the
aggregate net worth of each shareholder and that shareholder's spouse
and minor children shall not exceed the designated amount.
(d) For a family farm limited liability company, an aggregate net
worth of all members, including each member's ownership interest in
the family farm limited liability company, and each member's spouse
and minor children of less than twice the designated amount.
However, the aggregate net worth of each member and that member's
spouse and minor children shall not exceed the designated amount.
n. "Mortgage" means a mortgage, mortgage deed, deed of trust,
or other instrument creating a first lien, subject only to title
exceptions and encumbrances acceptable to the authority, including
any other mortgage liens of equal standing with or subordinate to the
mortgage loan retained by a seller or conveyed to a mortgage lender,
on a fee interest in agricultural land and agricultural improvements.
o. "Mortgage lender" means a bank, trust company, mortgage
company, national banking association, savings and loan association,
life insurance company, any state or federal governmental agency or
instrumentality, including without limitation the federal land bank
or any of its local associations, or any other financial institution
or entity authorized to make mortgage loans or secured loans in this
state.
p. "Mortgage loan" means a financial obligation secured by a
mortgage.
q. "Net worth" means a person's 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 a person's net
worth. Assets shall be valued at fair market value.
r. "Note" means a bond anticipation note or other obligation
or evidence of indebtedness issued by the authority pursuant to this
chapter.
s. "Permanent soil and water conservation practices" and
"temporary soil and water conservation practices" have the same
meaning as defined in section 161A.42.
t. "Secured loan" means a financial obligation secured by a
chattel mortgage, security agreement or other instrument creating a
lien on an interest in depreciable agricultural property.
u. "State agency" means any board, commission, department,
public officer, or other agency or authority of the state of Iowa.
2. The authority may establish by rule further definitions
applicable to this chapter and clarification of the definitions in
this section, as necessary to assure eligibility for funds, insurance
or guarantees available under federal laws and to carry out the
public purposes of this chapter. Section History: Early Form
[C81, § 175.2; 81 Acts, ch 68, § 2; 82 Acts, ch 1243, § 2] Section History: Recent Form
83 Acts, ch 93, § 1; 84 Acts, ch 1305, § 23; 85 Acts, ch 15, §1,
2; 86 Acts, ch 1026, § 1, 2; 86 Acts, ch 1027, § 1; 86 Acts, ch 1245,
§ 628; 87 Acts, ch 52, § 1; 87 Acts, ch 169, § 1; 94 Acts, ch 1118,
§1--3; 2000 Acts, ch 1010, §1, 2; 2006 Acts, ch 1161, §1, 7; 2008
Acts, ch 1191, §51
Referred to in § 654.16, 654.16A Footnotes
2006 amendment adding subsection 1, paragraph a, takes effect
January 1, 2007, and applies to tax years beginning on or after that
date; 2006 Acts, ch 1161, §7