a. Balance Sheet and Supporting Schedules - The beginning farmer must submit a professionally
prepared balance sheet, including all supporting schedules, showing his/her current net worth. The
balance sheet and schedules must:
1) Be prepared within 30 days of submitting the application (must show date prepared).
2) Be completed by a financial professional: lender, CPA, FSA officer or other financial professional.
The name and title of financial professional must be clearly provided.
3) Be signed by beginning farmer, spouse and the financial professional who prepared it.
4) Include the assets and liabilities of the spouse (if married) and any minor children. All assets must
be valued at fair market value. Fair market value is what a willing buyer would pay a willing seller in
the locality.
5) If applicable a machinery list must be included with the financial statement schedules. The
machinery list should include year, make, model and value of all machinery.
b. If the beginning farmer is also an owner in any other partnership, corporation, LLC or other entity:
1) The farmer must also submit a copy of the current balance sheet for that entity, which must abide
by the above criteria in 3a.
2) Formation articles including a list of all owners and their % of ownership must be included with the
application.
4. For an individual, the combined net worth of the individual and spouse and minor children cannot be
greater than the Net Worth Requirement.
5. For a partnership, the combined net worth of all partners, including each partner’s net capital in the
partnership, and each partner’s spouse and minor children cannot be greater than twice (2x) the Net Worth
Requirement. However, the net worth of each partner, including that partner’s spouse and minor children,
also cannot exceed the Net Worth Requirement.
6. For a family farm corporation, the combined net worth of all shareholders, including each shareholder’s net
capital in the partnership, and each shareholder’s spouse and minor children cannot be greater than twice
(2x) the Net Worth Requirement. However, the net worth of each shareholder, including that shareholder’s
spouse and minor children, also cannot exceed the Net Worth Requirement.
7. For a family farm limited liability company, the combined net worth of all members, including each
member’s net capital in the LLC, and each member’s spouse and minor children cannot be greater than
twice (2x) the Net Worth Requirement. However, the net worth of each member, including that member’s
spouse and minor children, also cannot exceed the Net Worth Requirement.
8. The beginning farmer must perform the duties required to operate the asset according to the lease. The
beginning farmer cannot sub-lease to any other person or entity.
9. If the beginning farmer is found to be in violation of these requirements, a tax credit will not be issued, and
the matter will be referred to the Iowa Department of Revenue for potential administrative action or judicial
enforcement.
10. Once a BFTC application is approved, the beginning farmer does not need to re-qualify during the term of
the lease.
FSA 156 Form
1. Submit an FSA 156 form for the leased acres. The form must meet the following requirements:
a. Be issued for the current crop year