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Wednesday, Apr. 16, 2014

Hustedts Benefit from Iowa Beginning Farmer Tax Credit Program

Tuesday, September 11, 2007

Joel Hustedt's desire is to farm. After attending college and earning a degree in sports management from Buena Vista University, he was able to return home to Galva and farm with his parents, Randy and Karla Hustedt, by renting land from his grandmother, Phyllis Hustedt.

The Iowa Beginning Farmer Tax Credit Program provided valuable assistance. The Hustedts worked with American National Bank and Galva branch manager, Marty Boyle, to take part in the program.

"The new program is helping me get started farming. The benefit (tax credit) is for the land owner but this way the land owner is willing to let me farm their ground without the high cash rent which they could receive otherwise," Joel Hustedt remarked.

When Joel's grandmother's renter left, the opportunity for him to begin farming in 2004 came together. "This program gives me the opportunity to rent the farm on a 50/50 crop share basis which takes some the risk away for Joel," Grandmother Phyllis Hustedt explained. "I could rent the farm on a cash basis, but it would be riskier for a young farmer. The tax credit helps out so I can rent it on the 50/50 crop share basis instead of cash rent."

The Iowa Beginning Farmer Tax Credit Program is designed to encourage owners of capital agricultural assets, who lease those assets, to lease them to Iowa's qualifying beginning farmers. The program provides the agricultural asset owner a credit against Iowa income taxes owed.

The Hustedts worked with their ag loan officer at American National Bank in Galva to apply for and initiate the program. "We are proud to help young farmers get started," stated Boyle. "It means more young families in the area, more students for our schools, and a busier Main Street."

For Joel Hustedt, the opportunity was too great to pass up. He recently married Jordan Youngren and they will be beginning their new life together on the farm as he dreamed.

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