Farmers Guide to Iowa Taxes

Introduction

This publication is intended as a general guide. For additional details reference Iowa Administrative Code Chapter 701-226: Agricultural Rules.

"Production of Agricultural Products" Begins With:

  • Cultivation of land previously cleared for planting crops; or
  • The purchase or breeding of livestock or domesticated fowl.

"Production of Agricultural Products" Ceases When:

  • An agricultural product has been transported to the point where it will be sold by the farmer or processed for further use. 

"Agricultural production" includes the following:

  • The raising of crops or livestock for market on an acreage
  • Raising of flowering, ornamental, or vegetable plants in commercial greenhouses or elsewhere for sale in the ordinary course of business
  • Aquaculture
  • Nurseries
  • Ranches
  • Orchards
  • Dairies
  • Raising catfish
  • Feedlot operations, whether or not crops to feed the livestock are grown on the property or if the livestock are owned by feedlot operators
  • Operations that grow and raise seed for sale to nurseries, ranches, orchards, and dairies.

Examples of activities that are not "agricultural production":

  • Logging
  • Production of Christmas trees
  • Beekeeping
  • Raising mink and other nondomesticated furbearing animals
  • Raising nondomesticated fowl (other than ostriches, rheas, and emus)
  • Land placed in the federal government’s Conservation Reserve Program (CRP)
  • Clearing or preparation of previously uncultivated land
  • Creation of farm ponds
  • Construction of machine sheds, confinement facilities, storage bins, or other farm buildings