Iowa Agricultural Development Authority Loans (IADA)

The IADA is a division of the Iowa Department of Agriculture and Land Stewardship and was formed to help farmers obtain adequate capital to pursue a career in production agriculture.

Iowa Beginning Farmer Loan Program

• Houghton State Bank finances these loans with the issuance of federal tax-exempts bonds offered by the IADA. Because we do not have to pay taxes on this money, we can offer you a lower interest rate.
• Funds can be used only for the purchase of land, machinery, equipment, breeding livestock, or to improve existing buildings or farmland.
• Maximum loan size is $250,000.
• Purchases from closely related family members are eligible.
• This program can be used in conjunction with the Loan Participation Program.
• Must meet Houghton State Bank general loan underwriting requirements.

Loan Participation Program

• Established to assist lenders and low-income farmers.
• Can be used to fund up to 30% of the purchase price or maximum of $100,000 IADA participation.
• These funds can be used to supplement the borrower's down payment.
• This program can be used in conjunction with the Iowa Beginning Farmer Loan Program.
• Other debt, liquidity, solvency, net worth, and income restriction requirements apply. Please contact one of the Ag lenders at Houghton State Bank for more information.