9H.1 DEFINITIONS.
For the purposes of this chapter:
1. "Actively engaged in farming" means that a natural person
who is a shareholder and an officer, director or employee of the
corporation or who is a member or manager of the limited liability
company either:
a. Inspects the production activities periodically and
furnishes at least half of the value of the tools and pays at least
half the direct cost of production; or
b. Regularly and frequently makes or takes an important part
in making management decisions substantially contributing to or
affecting the success of the farm operation; or
c. Performs physical work which significantly contributes to
crop or livestock production.
2. "Agricultural land" means land suitable for use in
farming.
3. "Authorized farm corporation" means a corporation other
than a family farm corporation founded for the purpose of farming and
the ownership of agricultural land in which:
a. The stockholders do not exceed twenty-five in number; and
b. The stockholders are all natural persons or persons acting
in a fiduciary capacity for the benefit of natural persons or
nonprofit corporations.
4. "Authorized limited liability company" means a limited
liability company other than a family farm limited liability company
founded for the purpose of farming and the ownership of agricultural
land in which all of the following apply:
a. The members do not exceed twenty-five in number.
b. The members are all natural persons or persons acting in a
fiduciary capacity for the benefit of natural persons or nonprofit
corporations.
5. "Authorized trust" means a trust other than a family trust
in which:
a. The beneficiaries do not exceed twenty-five in number; and
b. The beneficiaries are all natural persons, who are not
acting as a trustee or in a similar capacity for a trust as defined
in subsection 22 of this section, or persons acting in a fiduciary
capacity, or nonprofit corporations; and
c. Its income is not exempt from taxation under the laws of
either the United States or the state of Iowa.
6. "Beneficial ownership" includes interests held by a
nonresident alien individual directly or indirectly holding or
acquiring a ten percent or greater share in the partnership, limited
partnership, corporation, limited liability company, or trust, or
directly or indirectly through two or more such entities. In
addition, the term beneficial ownership shall include interests held
by all nonresident alien individuals if the nonresident alien
individuals in the aggregate directly or indirectly hold or acquire
twenty-five percent or more of the partnership, limited partnership,
corporation, limited liability company, or trust.
7. "Corporation" means a domestic or foreign corporation
subject to chapter 490, a nonprofit corporation, or a cooperative.
8. "Family farm corporation" means a corporation:
a. Founded for the purpose of farming and the ownership of
agricultural land in which the majority of the voting stock is held
by and the majority of the stockholders are persons related to each
other as spouse, parent, grandparent, lineal ascendants of
grandparents or their spouses and other lineal descendants of the
grandparents or their spouses, or persons acting in a fiduciary
capacity for persons so related;
b. All of its stockholders are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts as defined in subsection 11 of this section; and
c. Sixty percent of the gross revenues of the corporation
over the last consecutive three-year period comes from farming.
9. "Family farm limited liability company" means a limited
liability company which meets all of the following conditions:
a. The limited liability company is founded for the purpose
of farming and the ownership of agricultural land in which the
majority of the members are persons related to each other as spouse,
parent, grandparent, lineal ascendants of grandparents or their
spouses and other lineal descendants of the grandparents or their
spouses, or persons acting in a fiduciary capacity for persons so
related.
b. All of the members of the limited liability company are
natural persons or persons acting in a fiduciary capacity for the
benefit of natural persons or family trusts.
c. Sixty percent of the gross revenues of the limited
liability company over the last consecutive three-year period comes
from farming.
10. "Family farm limited partnership" means a limited
partnership which meets all of the following conditions:
a. The limited partnership is formed for the purpose of
farming and the ownership of agricultural land in which the general
partner and a majority of the partnership interest is held by and the
majority of limited partners are persons related to each other as
spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related.
b. The general partner manages and supervises the day-to- day
farming operations on the agricultural land.
c. All of the limited partners are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts.
d. Sixty percent of the gross revenues of the partnership
over the last consecutive three-year period comes from farming.
11. "Family trust" means a trust:
a. In which a majority interest in the trust is held by and
the majority of the beneficiaries are persons related to each other
as spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related; and
b. In which all the beneficiaries are natural persons, who
are not acting as a trustee or in a similar capacity for a trust, as
defined in subsection 22 of this section, or persons acting in a
fiduciary capacity, or nonprofit corporations; and
c. If the trust is established on or after July 1, 1988, the
trust must be established for the purpose of farming and sixty
percent of the gross revenues of the trust over the last consecutive
three-year period must come from farming.
12. "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 or the production of livestock.
Farming shall not include the production of timber, forest products,
nursery products, or sod and farming shall not include a contract
where a processor or distributor of farm products or supplies
provides spraying, harvesting or other farm services.
13. "Fiduciary capacity" means an undertaking to act as
executor, administrator, personal representative, guardian,
conservator or receiver.
14. "Grantor" means a natural person, other than a
nonresident alien as defined under this section, who is the creator
of a revocable trust or a trust.
15. "Indirect" means to act or attempt to accomplish an act
through an interest in a business association, through one or more
affiliates or intermediaries, or by any method other than a direct
approach, including by any circuitous or oblique method.
16. "Limited liability company" means a limited liability
company as defined in section 489.102 or 490A.102.
17. "Limited partnership" means a limited partnership as
defined in section 488.102, or a limited liability limited
partnership under chapter 488, which owns or leases agricultural land
or is engaged in farming.
18. "Nonprofit corporation" means:
a. Corporations organized under the provisions of chapter
504, Code 1989, or current chapter 504; or
b. Corporations which qualify under Title 26, section
501(c)(3) of the United States Code.
19. "Nonresident alien" means:
a. An individual who is not a citizen of the United States
and who is not domiciled in the United States.
b. A corporation incorporated under the law of any foreign
country.
c. A corporation organized in the United States, beneficial
ownership of which is held, directly or indirectly, by nonresident
alien individuals.
d. A trust organized in the United States or elsewhere if
beneficial ownership is held, directly or indirectly, by nonresident
alien individuals.
e. A partnership or limited partnership organized in the
United States or elsewhere if beneficial ownership is held, directly
or indirectly, by nonresident alien individuals.
f. A limited liability company organized in the United States
or elsewhere, beneficial ownership of which is held, directly or
indirectly, by nonresident alien individuals.
20. "Revocable trust" means a trust which provides that the
grantor retains the power to amend, modify, or revoke the trust at
any time prior to the death of the grantor, regardless of whether,
subsequent to the execution of the revocable trust and at any time
prior to death, the grantor is legally competent to exercise the
power to amend, modify, or revoke the trust and regardless of when
the trust is created.
21. "Testamentary trust" means a trust created by devising or
bequeathing property in trust in a will as such terms are used in the
Iowa probate code as provided in chapter 633A. Testamentary trust
includes a revocable trust that has not been revoked prior to the
grantor's death.
22. "Trust" means a fiduciary relationship with respect to
property, subjecting the person by whom the property is held to
equitable duties to deal with the property for the benefit of another
person, which arises as a result of a manifestation of an intention
to create it. Trust does not include a person acting in a fiduciary
capacity, as defined in subsection 13, or a revocable trust. A trust
includes a legal entity holding property as trustee, agent, escrow
agent, attorney in fact, and in any similar capacity.
Former subsections 6, 8--13, 22, 27--29, 31, and 32 transferred to
§202B.102 in Code Supplement 2003 pursuant to directive in 2003 Acts,
ch 115, §16, 19
New subsection 26A, enacted in 2003 Acts, ch 115, §1, transferred
to §202B.102 in Code Supplement 2003 pursuant to directive in 2003
Acts, ch 115, §16, 19
For future amendment to subsection 16 effective December 31, 2010,
see 2008 Acts, ch 1162, § 154, 155
9H.1 DEFINITIONS.
For the purposes of this chapter:
1. "Actively engaged in farming" means that a natural person
who is a shareholder and an officer, director or employee of the
corporation or who is a member or manager of the limited liability
company either:
a. Inspects the production activities periodically and
furnishes at least half of the value of the tools and pays at least
half the direct cost of production; or
b. Regularly and frequently makes or takes an important part
in making management decisions substantially contributing to or
affecting the success of the farm operation; or
c. Performs physical work which significantly contributes to
crop or livestock production.
2. "Agricultural land" means land suitable for use in
farming.
3. "Authorized farm corporation" means a corporation other
than a family farm corporation founded for the purpose of farming and
the ownership of agricultural land in which:
a. The stockholders do not exceed twenty-five in number; and
b. The stockholders are all natural persons or persons acting
in a fiduciary capacity for the benefit of natural persons or
nonprofit corporations.
4. "Authorized limited liability company" means a limited
liability company other than a family farm limited liability company
founded for the purpose of farming and the ownership of agricultural
land in which all of the following apply:
a. The members do not exceed twenty-five in number.
b. The members are all natural persons or persons acting in a
fiduciary capacity for the benefit of natural persons or nonprofit
corporations.
5. "Authorized trust" means a trust other than a family trust
in which:
a. The beneficiaries do not exceed twenty-five in number; and
b. The beneficiaries are all natural persons, who are not
acting as a trustee or in a similar capacity for a trust as defined
in subsection 22 of this section, or persons acting in a fiduciary
capacity, or nonprofit corporations; and
c. Its income is not exempt from taxation under the laws of
either the United States or the state of Iowa.
6. "Beneficial ownership" includes interests held by a
nonresident alien individual directly or indirectly holding or
acquiring a ten percent or greater share in the partnership, limited
partnership, corporation, limited liability company, or trust, or
directly or indirectly through two or more such entities. In
addition, the term beneficial ownership shall include interests held
by all nonresident alien individuals if the nonresident alien
individuals in the aggregate directly or indirectly hold or acquire
twenty-five percent or more of the partnership, limited partnership,
corporation, limited liability company, or trust.
7. "Corporation" means a domestic or foreign corporation
subject to chapter 490, a nonprofit corporation, or a cooperative.
8. "Family farm corporation" means a corporation:
a. Founded for the purpose of farming and the ownership of
agricultural land in which the majority of the voting stock is held
by and the majority of the stockholders are persons related to each
other as spouse, parent, grandparent, lineal ascendants of
grandparents or their spouses and other lineal descendants of the
grandparents or their spouses, or persons acting in a fiduciary
capacity for persons so related;
b. All of its stockholders are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts as defined in subsection 11 of this section; and
c. Sixty percent of the gross revenues of the corporation
over the last consecutive three-year period comes from farming.
9. "Family farm limited liability company" means a limited
liability company which meets all of the following conditions:
a. The limited liability company is founded for the purpose
of farming and the ownership of agricultural land in which the
majority of the members are persons related to each other as spouse,
parent, grandparent, lineal ascendants of grandparents or their
spouses and other lineal descendants of the grandparents or their
spouses, or persons acting in a fiduciary capacity for persons so
related.
b. All of the members of the limited liability company are
natural persons or persons acting in a fiduciary capacity for the
benefit of natural persons or family trusts.
c. Sixty percent of the gross revenues of the limited
liability company over the last consecutive three-year period comes
from farming.
10. "Family farm limited partnership" means a limited
partnership which meets all of the following conditions:
a. The limited partnership is formed for the purpose of
farming and the ownership of agricultural land in which the general
partner and a majority of the partnership interest is held by and the
majority of limited partners are persons related to each other as
spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related.
b. The general partner manages and supervises the day-to- day
farming operations on the agricultural land.
c. All of the limited partners are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts.
d. Sixty percent of the gross revenues of the partnership
over the last consecutive three-year period comes from farming.
11. "Family trust" means a trust:
a. In which a majority interest in the trust is held by and
the majority of the beneficiaries are persons related to each other
as spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related; and
b. In which all the beneficiaries are natural persons, who
are not acting as a trustee or in a similar capacity for a trust, as
defined in subsection 22 of this section, or persons acting in a
fiduciary capacity, or nonprofit corporations; and
c. If the trust is established on or after July 1, 1988, the
trust must be established for the purpose of farming and sixty
percent of the gross revenues of the trust over the last consecutive
three-year period must come from farming.
12. "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 or the production of livestock.
Farming shall not include the production of timber, forest products,
nursery products, or sod and farming shall not include a contract
where a processor or distributor of farm products or supplies
provides spraying, harvesting or other farm services.
13. "Fiduciary capacity" means an undertaking to act as
executor, administrator, personal representative, guardian,
conservator or receiver.
14. "Grantor" means a natural person, other than a
nonresident alien as defined under this section, who is the creator
of a revocable trust or a trust.
15. "Indirect" means to act or attempt to accomplish an act
through an interest in a business association, through one or more
affiliates or intermediaries, or by any method other than a direct
approach, including by any circuitous or oblique method.
16. "Limited liability company" means a limited liability
company as defined in section 489.102 or 490A.102.
17. "Limited partnership" means a limited partnership as
defined in section 488.102, or a limited liability limited
partnership under chapter 488, which owns or leases agricultural land
or is engaged in farming.
18. "Nonprofit corporation" means:
a. Corporations organized under the provisions of chapter
504, Code 1989, or current chapter 504; or
b. Corporations which qualify under Title 26, section
501(c)(3) of the United States Code.
19. "Nonresident alien" means:
a. An individual who is not a citizen of the United States
and who is not domiciled in the United States.
b. A corporation incorporated under the law of any foreign
country.
c. A corporation organized in the United States, beneficial
ownership of which is held, directly or indirectly, by nonresident
alien individuals.
d. A trust organized in the United States or elsewhere if
beneficial ownership is held, directly or indirectly, by nonresident
alien individuals.
e. A partnership or limited partnership organized in the
United States or elsewhere if beneficial ownership is held, directly
or indirectly, by nonresident alien individuals.
f. A limited liability company organized in the United States
or elsewhere, beneficial ownership of which is held, directly or
indirectly, by nonresident alien individuals.
20. "Revocable trust" means a trust which provides that the
grantor retains the power to amend, modify, or revoke the trust at
any time prior to the death of the grantor, regardless of whether,
subsequent to the execution of the revocable trust and at any time
prior to death, the grantor is legally competent to exercise the
power to amend, modify, or revoke the trust and regardless of when
the trust is created.
21. "Testamentary trust" means a trust created by devising or
bequeathing property in trust in a will as such terms are used in the
Iowa probate code as provided in chapter 633A. Testamentary trust
includes a revocable trust that has not been revoked prior to the
grantor's death.
22. "Trust" means a fiduciary relationship with respect to
property, subjecting the person by whom the property is held to
equitable duties to deal with the property for the benefit of another
person, which arises as a result of a manifestation of an intention
to create it. Trust does not include a person acting in a fiduciary
capacity, as defined in subsection 13, or a revocable trust. A trust
includes a legal entity holding property as trustee, agent, escrow
agent, attorney in fact, and in any similar capacity.
Former subsections 6, 8--13, 22, 27--29, 31, and 32 transferred to
§202B.102 in Code Supplement 2003 pursuant to directive in 2003 Acts,
ch 115, §16, 19
New subsection 26A, enacted in 2003 Acts, ch 115, §1, transferred
to §202B.102 in Code Supplement 2003 pursuant to directive in 2003
Acts, ch 115, §16, 19
For future amendment to subsection 16 effective December 31, 2010,
see 2008 Acts, ch 1162, § 154, 155
9H.1 DEFINITIONS.
For the purposes of this chapter:
1. "Actively engaged in farming" means that a natural person
who is a shareholder and an officer, director or employee of the
corporation or who is a member or manager of the limited liability
company either:
a. Inspects the production activities periodically and
furnishes at least half of the value of the tools and pays at least
half the direct cost of production; or
b. Regularly and frequently makes or takes an important part
in making management decisions substantially contributing to or
affecting the success of the farm operation; or
c. Performs physical work which significantly contributes to
crop or livestock production.
2. "Agricultural land" means land suitable for use in
farming.
3. "Authorized farm corporation" means a corporation other
than a family farm corporation founded for the purpose of farming and
the ownership of agricultural land in which:
a. The stockholders do not exceed twenty-five in number; and
b. The stockholders are all natural persons or persons acting
in a fiduciary capacity for the benefit of natural persons or
nonprofit corporations.
4. "Authorized limited liability company" means a limited
liability company other than a family farm limited liability company
founded for the purpose of farming and the ownership of agricultural
land in which all of the following apply:
a. The members do not exceed twenty-five in number.
b. The members are all natural persons or persons acting in a
fiduciary capacity for the benefit of natural persons or nonprofit
corporations.
5. "Authorized trust" means a trust other than a family trust
in which:
a. The beneficiaries do not exceed twenty-five in number; and
b. The beneficiaries are all natural persons, who are not
acting as a trustee or in a similar capacity for a trust as defined
in subsection 22 of this section, or persons acting in a fiduciary
capacity, or nonprofit corporations; and
c. Its income is not exempt from taxation under the laws of
either the United States or the state of Iowa.
6. "Beneficial ownership" includes interests held by a
nonresident alien individual directly or indirectly holding or
acquiring a ten percent or greater share in the partnership, limited
partnership, corporation, limited liability company, or trust, or
directly or indirectly through two or more such entities. In
addition, the term beneficial ownership shall include interests held
by all nonresident alien individuals if the nonresident alien
individuals in the aggregate directly or indirectly hold or acquire
twenty-five percent or more of the partnership, limited partnership,
corporation, limited liability company, or trust.
7. "Corporation" means a domestic or foreign corporation
subject to chapter 490, a nonprofit corporation, or a cooperative.
8. "Family farm corporation" means a corporation:
a. Founded for the purpose of farming and the ownership of
agricultural land in which the majority of the voting stock is held
by and the majority of the stockholders are persons related to each
other as spouse, parent, grandparent, lineal ascendants of
grandparents or their spouses and other lineal descendants of the
grandparents or their spouses, or persons acting in a fiduciary
capacity for persons so related;
b. All of its stockholders are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts as defined in subsection 11 of this section; and
c. Sixty percent of the gross revenues of the corporation
over the last consecutive three-year period comes from farming.
9. "Family farm limited liability company" means a limited
liability company which meets all of the following conditions:
a. The limited liability company is founded for the purpose
of farming and the ownership of agricultural land in which the
majority of the members are persons related to each other as spouse,
parent, grandparent, lineal ascendants of grandparents or their
spouses and other lineal descendants of the grandparents or their
spouses, or persons acting in a fiduciary capacity for persons so
related.
b. All of the members of the limited liability company are
natural persons or persons acting in a fiduciary capacity for the
benefit of natural persons or family trusts.
c. Sixty percent of the gross revenues of the limited
liability company over the last consecutive three-year period comes
from farming.
10. "Family farm limited partnership" means a limited
partnership which meets all of the following conditions:
a. The limited partnership is formed for the purpose of
farming and the ownership of agricultural land in which the general
partner and a majority of the partnership interest is held by and the
majority of limited partners are persons related to each other as
spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related.
b. The general partner manages and supervises the day-to- day
farming operations on the agricultural land.
c. All of the limited partners are natural persons or persons
acting in a fiduciary capacity for the benefit of natural persons or
family trusts.
d. Sixty percent of the gross revenues of the partnership
over the last consecutive three-year period comes from farming.
11. "Family trust" means a trust:
a. In which a majority interest in the trust is held by and
the majority of the beneficiaries are persons related to each other
as spouse, parent, grandparent, lineal ascendants of grandparents or
their spouses and other lineal descendants of the grandparents or
their spouses, or persons acting in a fiduciary capacity for persons
so related; and
b. In which all the beneficiaries are natural persons, who
are not acting as a trustee or in a similar capacity for a trust, as
defined in subsection 22 of this section, or persons acting in a
fiduciary capacity, or nonprofit corporations; and
c. If the trust is established on or after July 1, 1988, the
trust must be established for the purpose of farming and sixty
percent of the gross revenues of the trust over the last consecutive
three-year period must come from farming.
12. "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 or the production of livestock.
Farming shall not include the production of timber, forest products,
nursery products, or sod and farming shall not include a contract
where a processor or distributor of farm products or supplies
provides spraying, harvesting or other farm services.
13. "Fiduciary capacity" means an undertaking to act as
executor, administrator, personal representative, guardian,
conservator or receiver.
14. "Grantor" means a natural person, other than a
nonresident alien as defined under this section, who is the creator
of a revocable trust or a trust.
15. "Indirect" means to act or attempt to accomplish an act
through an interest in a business association, through one or more
affiliates or intermediaries, or by any method other than a direct
approach, including by any circuitous or oblique method.
16. "Limited liability company" means a limited liability
company as defined in section 489.102 or 490A.102.
17. "Limited partnership" means a limited partnership as
defined in section 488.102, or a limited liability limited
partnership under chapter 488, which owns or leases agricultural land
or is engaged in farming.
18. "Nonprofit corporation" means:
a. Corporations organized under the provisions of chapter
504, Code 1989, or current chapter 504; or
b. Corporations which qualify under Title 26, section
501(c)(3) of the United States Code.
19. "Nonresident alien" means:
a. An individual who is not a citizen of the United States
and who is not domiciled in the United States.
b. A corporation incorporated under the law of any foreign
country.
c. A corporation organized in the United States, beneficial
ownership of which is held, directly or indirectly, by nonresident
alien individuals.
d. A trust organized in the United States or elsewhere if
beneficial ownership is held, directly or indirectly, by nonresident
alien individuals.
e. A partnership or limited partnership organized in the
United States or elsewhere if beneficial ownership is held, directly
or indirectly, by nonresident alien individuals.
f. A limited liability company organized in the United States
or elsewhere, beneficial ownership of which is held, directly or
indirectly, by nonresident alien individuals.
20. "Revocable trust" means a trust which provides that the
grantor retains the power to amend, modify, or revoke the trust at
any time prior to the death of the grantor, regardless of whether,
subsequent to the execution of the revocable trust and at any time
prior to death, the grantor is legally competent to exercise the
power to amend, modify, or revoke the trust and regardless of when
the trust is created.
21. "Testamentary trust" means a trust created by devising or
bequeathing property in trust in a will as such terms are used in the
Iowa probate code as provided in chapter 633A. Testamentary trust
includes a revocable trust that has not been revoked prior to the
grantor's death.
22. "Trust" means a fiduciary relationship with respect to
property, subjecting the person by whom the property is held to
equitable duties to deal with the property for the benefit of another
person, which arises as a result of a manifestation of an intention
to create it. Trust does not include a person acting in a fiduciary
capacity, as defined in subsection 13, or a revocable trust. A trust
includes a legal entity holding property as trustee, agent, escrow
agent, attorney in fact, and in any similar capacity.
Former subsections 6, 8--13, 22, 27--29, 31, and 32 transferred to
§202B.102 in Code Supplement 2003 pursuant to directive in 2003 Acts,
ch 115, §16, 19
New subsection 26A, enacted in 2003 Acts, ch 115, §1, transferred
to §202B.102 in Code Supplement 2003 pursuant to directive in 2003
Acts, ch 115, §16, 19
For future amendment to subsection 16 effective December 31, 2010,
see 2008 Acts, ch 1162, § 154, 155
