9H.4 RESTRICTION ON INCREASE OF HOLDINGS --
EXCEPTIONS -- PENALTY.
1. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust shall not, either directly or indirectly, acquire or otherwise
obtain or lease any agricultural land in this state. However, the
restrictions provided in this section shall not apply to the
following:
a. A bona fide encumbrance taken for purposes of security.
b. Agricultural land acquired for research or experimental
purposes. Agricultural land is used for research or experimental
purposes if any of the following apply:
(1) Research and experimental activities are undertaken on the
agricultural land and commercial sales of products produced from
farming the agricultural land do not occur or are incidental to the
research or experimental purposes of the corporation or limited
liability company. Commercial sales are incidental to the research
or experimental purposes of the corporation or limited liability
company when such sales are less than twenty-five percent of the
gross sales of the primary product of the research.
(2) The agricultural land is used for the primary purpose of
testing, developing, or producing seeds or plants for sale or resale
to farmers as seed stock. Grain which is not sold as seed stock is
an incidental sale and must be less than twenty-five percent of the
gross sales of the primary product of the research and experimental
activities.
(3) (a) The agricultural land is used by a corporation or limited
liability company, including any trade or business which is under
common control, as provided in 26 U.S.C. § 414 for the primary
purpose of testing, developing, or producing animals for sale or
resale to farmers as breeding stock. However, after July 1, 1989, to
qualify under this subparagraph division, the following conditions
must be satisfied:
(i) The corporation or limited liability company must not hold
the agricultural land other than as a lessee. The term of the lease
must be for not more than twelve years. The corporation or limited
liability company shall not renew a lease. The corporation or
limited liability company shall not enter into a lease under this
subparagraph subdivision, if the corporation or limited liability
company has ever entered into another lease under this subparagraph
(3), whether or not the lease is in effect. However, this
subparagraph does not apply to a domestic corporation organized under
chapter 504, Code 1989, or current chapter 504.
(ii) A term or condition of sale, including resale, of breeding
stock must not relate to the direct or indirect control by the
corporation or limited liability company of the breeding stock or
breeding stock progeny subsequent to the sale.
(iii) The number of acres of agricultural land held by the
corporation or limited liability company must not exceed six hundred
forty acres.
(iv) The corporation or limited liability company must deliver a
copy of the lease to the secretary of state. The secretary of state
shall notify the lessee of receipt of the copy of the lease.
However, this subparagraph division does not apply to a domestic
corporation organized under chapter 504, Code 1989, or current
chapter 504.
(b) Culls and test animals may be sold under this subparagraph
(3). For a three-year period beginning on the date that the
corporation or limited liability company acquires an interest in the
agricultural land, the gross sales for any year shall not be greater
than five hundred thousand dollars. After the three-year period
ends, the gross sales for any year shall not be greater than
twenty-five percent of the gross sales for that year of the breeding
stock, or five hundred thousand dollars, whichever is less.
c. Agricultural land, including leasehold interests, acquired
by a nonprofit corporation organized under the provisions of chapter
504, Code 1989, and current chapter 504 including land acquired and
operated by or for a state university for research, experimental,
demonstration, foundation seed increase or test purposes and land
acquired and operated by or for nonprofit corporations organized
specifically for research, experimental, demonstration, foundation
seed increase or test purposes in support of or in conjunction with a
state university.
d. Agricultural land acquired by a corporation or limited
liability company for immediate or potential use in nonfarming
purposes.
e. Agricultural land acquired by a corporation or limited
liability company by process of law in the collection of debts, or
pursuant to a contract for deed executed prior to August 15, 1975, or
by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise.
f. A municipal corporation.
g. Agricultural land which is acquired by a trust company or
bank in a fiduciary capacity or as trustee for a family trust,
authorized trust or testamentary trust or for nonprofit corporations.
h. A corporation or its subsidiary organized under chapter
490 or a limited liability company organized under chapter 489 or
490A and to which section 312.8 is applicable.
i. Agricultural land held or leased by a corporation on July
1, 1975, as long as the corporation holding or leasing the land on
this date continues to hold or lease such agricultural land.
j. Agricultural land held or leased by a trust on July 1,
1977, as long as the trust holding or leasing such land on this date
continues to hold or lease such agricultural land.
k. Agricultural land acquired by a trust for immediate use in
nonfarming purposes.
2. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust, violating this section shall be assessed a civil penalty of
not more than twenty-five thousand dollars and shall divest itself of
any land held in violation of this section within one year after
judgment. The courts of this state may prevent and restrain
violations of this section through the issuance of an injunction.
The attorney general or a county attorney shall institute suits on
behalf of the state to prevent and restrain violations of this
section.
9H.4 RESTRICTION ON INCREASE OF HOLDINGS --
EXCEPTIONS -- PENALTY.
1. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust shall not, either directly or indirectly, acquire or otherwise
obtain or lease any agricultural land in this state. However, the
restrictions provided in this section shall not apply to the
following:
a. A bona fide encumbrance taken for purposes of security.
b. Agricultural land acquired for research or experimental
purposes. Agricultural land is used for research or experimental
purposes if any of the following apply:
(1) Research and experimental activities are undertaken on the
agricultural land and commercial sales of products produced from
farming the agricultural land do not occur or are incidental to the
research or experimental purposes of the corporation or limited
liability company. Commercial sales are incidental to the research
or experimental purposes of the corporation or limited liability
company when such sales are less than twenty-five percent of the
gross sales of the primary product of the research.
(2) The agricultural land is used for the primary purpose of
testing, developing, or producing seeds or plants for sale or resale
to farmers as seed stock. Grain which is not sold as seed stock is
an incidental sale and must be less than twenty-five percent of the
gross sales of the primary product of the research and experimental
activities.
(3) (a) The agricultural land is used by a corporation or limited
liability company, including any trade or business which is under
common control, as provided in 26 U.S.C. § 414 for the primary
purpose of testing, developing, or producing animals for sale or
resale to farmers as breeding stock. However, after July 1, 1989, to
qualify under this subparagraph division, the following conditions
must be satisfied:
(i) The corporation or limited liability company must not hold
the agricultural land other than as a lessee. The term of the lease
must be for not more than twelve years. The corporation or limited
liability company shall not renew a lease. The corporation or
limited liability company shall not enter into a lease under this
subparagraph subdivision, if the corporation or limited liability
company has ever entered into another lease under this subparagraph
(3), whether or not the lease is in effect. However, this
subparagraph does not apply to a domestic corporation organized under
chapter 504, Code 1989, or current chapter 504.
(ii) A term or condition of sale, including resale, of breeding
stock must not relate to the direct or indirect control by the
corporation or limited liability company of the breeding stock or
breeding stock progeny subsequent to the sale.
(iii) The number of acres of agricultural land held by the
corporation or limited liability company must not exceed six hundred
forty acres.
(iv) The corporation or limited liability company must deliver a
copy of the lease to the secretary of state. The secretary of state
shall notify the lessee of receipt of the copy of the lease.
However, this subparagraph division does not apply to a domestic
corporation organized under chapter 504, Code 1989, or current
chapter 504.
(b) Culls and test animals may be sold under this subparagraph
(3). For a three-year period beginning on the date that the
corporation or limited liability company acquires an interest in the
agricultural land, the gross sales for any year shall not be greater
than five hundred thousand dollars. After the three-year period
ends, the gross sales for any year shall not be greater than
twenty-five percent of the gross sales for that year of the breeding
stock, or five hundred thousand dollars, whichever is less.
c. Agricultural land, including leasehold interests, acquired
by a nonprofit corporation organized under the provisions of chapter
504, Code 1989, and current chapter 504 including land acquired and
operated by or for a state university for research, experimental,
demonstration, foundation seed increase or test purposes and land
acquired and operated by or for nonprofit corporations organized
specifically for research, experimental, demonstration, foundation
seed increase or test purposes in support of or in conjunction with a
state university.
d. Agricultural land acquired by a corporation or limited
liability company for immediate or potential use in nonfarming
purposes.
e. Agricultural land acquired by a corporation or limited
liability company by process of law in the collection of debts, or
pursuant to a contract for deed executed prior to August 15, 1975, or
by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise.
f. A municipal corporation.
g. Agricultural land which is acquired by a trust company or
bank in a fiduciary capacity or as trustee for a family trust,
authorized trust or testamentary trust or for nonprofit corporations.
h. A corporation or its subsidiary organized under chapter
490 or a limited liability company organized under chapter 489 or
490A and to which section 312.8 is applicable.
i. Agricultural land held or leased by a corporation on July
1, 1975, as long as the corporation holding or leasing the land on
this date continues to hold or lease such agricultural land.
j. Agricultural land held or leased by a trust on July 1,
1977, as long as the trust holding or leasing such land on this date
continues to hold or lease such agricultural land.
k. Agricultural land acquired by a trust for immediate use in
nonfarming purposes.
2. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust, violating this section shall be assessed a civil penalty of
not more than twenty-five thousand dollars and shall divest itself of
any land held in violation of this section within one year after
judgment. The courts of this state may prevent and restrain
violations of this section through the issuance of an injunction.
The attorney general or a county attorney shall institute suits on
behalf of the state to prevent and restrain violations of this
section.
9H.4 RESTRICTION ON INCREASE OF HOLDINGS --
EXCEPTIONS -- PENALTY.
1. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust shall not, either directly or indirectly, acquire or otherwise
obtain or lease any agricultural land in this state. However, the
restrictions provided in this section shall not apply to the
following:
a. A bona fide encumbrance taken for purposes of security.
b. Agricultural land acquired for research or experimental
purposes. Agricultural land is used for research or experimental
purposes if any of the following apply:
(1) Research and experimental activities are undertaken on the
agricultural land and commercial sales of products produced from
farming the agricultural land do not occur or are incidental to the
research or experimental purposes of the corporation or limited
liability company. Commercial sales are incidental to the research
or experimental purposes of the corporation or limited liability
company when such sales are less than twenty-five percent of the
gross sales of the primary product of the research.
(2) The agricultural land is used for the primary purpose of
testing, developing, or producing seeds or plants for sale or resale
to farmers as seed stock. Grain which is not sold as seed stock is
an incidental sale and must be less than twenty-five percent of the
gross sales of the primary product of the research and experimental
activities.
(3) (a) The agricultural land is used by a corporation or limited
liability company, including any trade or business which is under
common control, as provided in 26 U.S.C. § 414 for the primary
purpose of testing, developing, or producing animals for sale or
resale to farmers as breeding stock. However, after July 1, 1989, to
qualify under this subparagraph division, the following conditions
must be satisfied:
(i) The corporation or limited liability company must not hold
the agricultural land other than as a lessee. The term of the lease
must be for not more than twelve years. The corporation or limited
liability company shall not renew a lease. The corporation or
limited liability company shall not enter into a lease under this
subparagraph subdivision, if the corporation or limited liability
company has ever entered into another lease under this subparagraph
(3), whether or not the lease is in effect. However, this
subparagraph does not apply to a domestic corporation organized under
chapter 504, Code 1989, or current chapter 504.
(ii) A term or condition of sale, including resale, of breeding
stock must not relate to the direct or indirect control by the
corporation or limited liability company of the breeding stock or
breeding stock progeny subsequent to the sale.
(iii) The number of acres of agricultural land held by the
corporation or limited liability company must not exceed six hundred
forty acres.
(iv) The corporation or limited liability company must deliver a
copy of the lease to the secretary of state. The secretary of state
shall notify the lessee of receipt of the copy of the lease.
However, this subparagraph division does not apply to a domestic
corporation organized under chapter 504, Code 1989, or current
chapter 504.
(b) Culls and test animals may be sold under this subparagraph
(3). For a three-year period beginning on the date that the
corporation or limited liability company acquires an interest in the
agricultural land, the gross sales for any year shall not be greater
than five hundred thousand dollars. After the three-year period
ends, the gross sales for any year shall not be greater than
twenty-five percent of the gross sales for that year of the breeding
stock, or five hundred thousand dollars, whichever is less.
c. Agricultural land, including leasehold interests, acquired
by a nonprofit corporation organized under the provisions of chapter
504, Code 1989, and current chapter 504 including land acquired and
operated by or for a state university for research, experimental,
demonstration, foundation seed increase or test purposes and land
acquired and operated by or for nonprofit corporations organized
specifically for research, experimental, demonstration, foundation
seed increase or test purposes in support of or in conjunction with a
state university.
d. Agricultural land acquired by a corporation or limited
liability company for immediate or potential use in nonfarming
purposes.
e. Agricultural land acquired by a corporation or limited
liability company by process of law in the collection of debts, or
pursuant to a contract for deed executed prior to August 15, 1975, or
by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise.
f. A municipal corporation.
g. Agricultural land which is acquired by a trust company or
bank in a fiduciary capacity or as trustee for a family trust,
authorized trust or testamentary trust or for nonprofit corporations.
h. A corporation or its subsidiary organized under chapter
490 or a limited liability company organized under chapter 489 or
490A and to which section 312.8 is applicable.
i. Agricultural land held or leased by a corporation on July
1, 1975, as long as the corporation holding or leasing the land on
this date continues to hold or lease such agricultural land.
j. Agricultural land held or leased by a trust on July 1,
1977, as long as the trust holding or leasing such land on this date
continues to hold or lease such agricultural land.
k. Agricultural land acquired by a trust for immediate use in
nonfarming purposes.
2. A corporation, limited liability company, or trust, other than
a family farm corporation, authorized farm corporation, family farm
limited liability company, authorized limited liability company,
family trust, authorized trust, revocable trust, or testamentary
trust, violating this section shall be assessed a civil penalty of
not more than twenty-five thousand dollars and shall divest itself of
any land held in violation of this section within one year after
judgment. The courts of this state may prevent and restrain
violations of this section through the issuance of an injunction.
The attorney general or a county attorney shall institute suits on
behalf of the state to prevent and restrain violations of this
section.
