9I.3 RESTRICTION ON AGRICULTURAL LAND HOLDINGS.
1. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof, shall not purchase or
otherwise acquire agricultural land in this state. A nonresident
alien, foreign business or foreign government, or an agent, trustee
or fiduciary thereof, which owns or holds agricultural land in this
state on January 1, 1980, may continue to own or hold the land, but
shall not purchase or otherwise acquire additional agricultural land
in this state.
2. A person who acquires agricultural land in violation of this
chapter or who fails to convert the land to the purpose other than
farming within five years, as provided for in this chapter, remains
in violation of this chapter for as long as the person holds an
interest in the land.
3. The restriction set forth in subsection 1 of this section does
not apply to the following:
a. Agricultural land acquired by devise or descent.
b. A bona fide encumbrance on agricultural land taken for
purposes of security.
c. Agricultural land acquired by a process of law in the
collection of debts, by a deed in lieu of foreclosure, pursuant to a
forfeiture of a contract for deed, or by any procedure for the
enforcement of a lien or claim on the land, whether created by
mortgage or otherwise. However, agricultural land so acquired shall
be sold or otherwise disposed of within two years after title is
transferred. Pending the sale or disposition, the land shall not be
used for any purpose other than farming, and the land shall not be
used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4. Agricultural land which has been acquired pursuant to
this paragraph shall not be acquired or utilized by the nonresident
alien, foreign business, or foreign government, or an agent, trustee,
or fiduciary thereof, under either paragraph "d" or paragraph
"e".
d. 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. Commercial
sales are incidental to the research or experimental purposes of the
corporation 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) Until July 1, 2001, the agricultural land is used 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 paragraph, the following conditions must be
satisfied:
(a) The nonresident alien, foreign business, or foreign
government or an agent, trustee, or fiduciary of the alien, business,
or government must not hold the agricultural land other than as a
lessee. The term of the lease must be for not more than twelve
years. A lessee shall not renew a lease entered into under this
subparagraph (3). The lessee shall not enter into a lease under this
paragraph, if another lease under this paragraph has been entered
into by the lessee.
(b) A term or condition of sale, including resale, of seed stock
or breeding stock must not relate to the direct or indirect control
by the lessee of the breeding stock or breeding stock progeny
subsequent to the sale.
(c) The number of acres of agricultural land held by the lessee
must not exceed six hundred forty acres.
(d) The lessee 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.
(4) Culls and test animals may be sold under subparagraph (3).
For a three-year period beginning on the date that the lease takes
effect, 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. As used in
subparagraph (3), "lessee" means a nonresident alien, foreign
business, or foreign government, or an agent, trustee, or fiduciary
acting on behalf of the nonresident alien, foreign business, or
foreign government, or any other trade or business which is under the
lessee's common control as provided in 26 U.S.C. § 414.
(5) Effective July 1, 2001, subparagraph (3) shall not be
effective. However, a lessee may continue for the duration of the
period of the lease to lease the agricultural land under subparagraph
(3) if the lease was entered into prior to July 1, 2001.
(6) Effective July 1, 2001, a nonresident alien, foreign
business, or foreign government or an agent, trustee, or fiduciary of
the alien, business, or government shall not, except as provided in
subparagraph (5), acquire or hold agricultural land used for the
primary purpose of testing, developing, or producing animals.
e. An interest in agricultural land, not to exceed three
hundred twenty acres, acquired for an immediate or pending use other
than farming. However, a nonresident alien, foreign business or
foreign government, or an agent, trustee or fiduciary thereof, who
lawfully owns over three hundred twenty acres on January 1, 1980, may
continue to own or hold the land, but shall not purchase or otherwise
acquire additional agricultural land in this state except by devise
or descent from a nonresident alien. Pending the development of the
agricultural land for purpose other than farming, the land shall not
be used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4.
4. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof shall not transfer title to
or interest in agricultural land to a nonresident alien, foreign
business or foreign government, or an agent, trustee or fiduciary
thereof except by devise or descent.
9I.3 RESTRICTION ON AGRICULTURAL LAND HOLDINGS.
1. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof, shall not purchase or
otherwise acquire agricultural land in this state. A nonresident
alien, foreign business or foreign government, or an agent, trustee
or fiduciary thereof, which owns or holds agricultural land in this
state on January 1, 1980, may continue to own or hold the land, but
shall not purchase or otherwise acquire additional agricultural land
in this state.
2. A person who acquires agricultural land in violation of this
chapter or who fails to convert the land to the purpose other than
farming within five years, as provided for in this chapter, remains
in violation of this chapter for as long as the person holds an
interest in the land.
3. The restriction set forth in subsection 1 of this section does
not apply to the following:
a. Agricultural land acquired by devise or descent.
b. A bona fide encumbrance on agricultural land taken for
purposes of security.
c. Agricultural land acquired by a process of law in the
collection of debts, by a deed in lieu of foreclosure, pursuant to a
forfeiture of a contract for deed, or by any procedure for the
enforcement of a lien or claim on the land, whether created by
mortgage or otherwise. However, agricultural land so acquired shall
be sold or otherwise disposed of within two years after title is
transferred. Pending the sale or disposition, the land shall not be
used for any purpose other than farming, and the land shall not be
used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4. Agricultural land which has been acquired pursuant to
this paragraph shall not be acquired or utilized by the nonresident
alien, foreign business, or foreign government, or an agent, trustee,
or fiduciary thereof, under either paragraph "d" or paragraph
"e".
d. 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. Commercial
sales are incidental to the research or experimental purposes of the
corporation 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) Until July 1, 2001, the agricultural land is used 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 paragraph, the following conditions must be
satisfied:
(a) The nonresident alien, foreign business, or foreign
government or an agent, trustee, or fiduciary of the alien, business,
or government must not hold the agricultural land other than as a
lessee. The term of the lease must be for not more than twelve
years. A lessee shall not renew a lease entered into under this
subparagraph (3). The lessee shall not enter into a lease under this
paragraph, if another lease under this paragraph has been entered
into by the lessee.
(b) A term or condition of sale, including resale, of seed stock
or breeding stock must not relate to the direct or indirect control
by the lessee of the breeding stock or breeding stock progeny
subsequent to the sale.
(c) The number of acres of agricultural land held by the lessee
must not exceed six hundred forty acres.
(d) The lessee 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.
(4) Culls and test animals may be sold under subparagraph (3).
For a three-year period beginning on the date that the lease takes
effect, 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. As used in
subparagraph (3), "lessee" means a nonresident alien, foreign
business, or foreign government, or an agent, trustee, or fiduciary
acting on behalf of the nonresident alien, foreign business, or
foreign government, or any other trade or business which is under the
lessee's common control as provided in 26 U.S.C. § 414.
(5) Effective July 1, 2001, subparagraph (3) shall not be
effective. However, a lessee may continue for the duration of the
period of the lease to lease the agricultural land under subparagraph
(3) if the lease was entered into prior to July 1, 2001.
(6) Effective July 1, 2001, a nonresident alien, foreign
business, or foreign government or an agent, trustee, or fiduciary of
the alien, business, or government shall not, except as provided in
subparagraph (5), acquire or hold agricultural land used for the
primary purpose of testing, developing, or producing animals.
e. An interest in agricultural land, not to exceed three
hundred twenty acres, acquired for an immediate or pending use other
than farming. However, a nonresident alien, foreign business or
foreign government, or an agent, trustee or fiduciary thereof, who
lawfully owns over three hundred twenty acres on January 1, 1980, may
continue to own or hold the land, but shall not purchase or otherwise
acquire additional agricultural land in this state except by devise
or descent from a nonresident alien. Pending the development of the
agricultural land for purpose other than farming, the land shall not
be used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4.
4. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof shall not transfer title to
or interest in agricultural land to a nonresident alien, foreign
business or foreign government, or an agent, trustee or fiduciary
thereof except by devise or descent.
9I.3 RESTRICTION ON AGRICULTURAL LAND HOLDINGS.
1. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof, shall not purchase or
otherwise acquire agricultural land in this state. A nonresident
alien, foreign business or foreign government, or an agent, trustee
or fiduciary thereof, which owns or holds agricultural land in this
state on January 1, 1980, may continue to own or hold the land, but
shall not purchase or otherwise acquire additional agricultural land
in this state.
2. A person who acquires agricultural land in violation of this
chapter or who fails to convert the land to the purpose other than
farming within five years, as provided for in this chapter, remains
in violation of this chapter for as long as the person holds an
interest in the land.
3. The restriction set forth in subsection 1 of this section does
not apply to the following:
a. Agricultural land acquired by devise or descent.
b. A bona fide encumbrance on agricultural land taken for
purposes of security.
c. Agricultural land acquired by a process of law in the
collection of debts, by a deed in lieu of foreclosure, pursuant to a
forfeiture of a contract for deed, or by any procedure for the
enforcement of a lien or claim on the land, whether created by
mortgage or otherwise. However, agricultural land so acquired shall
be sold or otherwise disposed of within two years after title is
transferred. Pending the sale or disposition, the land shall not be
used for any purpose other than farming, and the land shall not be
used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4. Agricultural land which has been acquired pursuant to
this paragraph shall not be acquired or utilized by the nonresident
alien, foreign business, or foreign government, or an agent, trustee,
or fiduciary thereof, under either paragraph "d" or paragraph
"e".
d. 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. Commercial
sales are incidental to the research or experimental purposes of the
corporation 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) Until July 1, 2001, the agricultural land is used 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 paragraph, the following conditions must be
satisfied:
(a) The nonresident alien, foreign business, or foreign
government or an agent, trustee, or fiduciary of the alien, business,
or government must not hold the agricultural land other than as a
lessee. The term of the lease must be for not more than twelve
years. A lessee shall not renew a lease entered into under this
subparagraph (3). The lessee shall not enter into a lease under this
paragraph, if another lease under this paragraph has been entered
into by the lessee.
(b) A term or condition of sale, including resale, of seed stock
or breeding stock must not relate to the direct or indirect control
by the lessee of the breeding stock or breeding stock progeny
subsequent to the sale.
(c) The number of acres of agricultural land held by the lessee
must not exceed six hundred forty acres.
(d) The lessee 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.
(4) Culls and test animals may be sold under subparagraph (3).
For a three-year period beginning on the date that the lease takes
effect, 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. As used in
subparagraph (3), "lessee" means a nonresident alien, foreign
business, or foreign government, or an agent, trustee, or fiduciary
acting on behalf of the nonresident alien, foreign business, or
foreign government, or any other trade or business which is under the
lessee's common control as provided in 26 U.S.C. § 414.
(5) Effective July 1, 2001, subparagraph (3) shall not be
effective. However, a lessee may continue for the duration of the
period of the lease to lease the agricultural land under subparagraph
(3) if the lease was entered into prior to July 1, 2001.
(6) Effective July 1, 2001, a nonresident alien, foreign
business, or foreign government or an agent, trustee, or fiduciary of
the alien, business, or government shall not, except as provided in
subparagraph (5), acquire or hold agricultural land used for the
primary purpose of testing, developing, or producing animals.
e. An interest in agricultural land, not to exceed three
hundred twenty acres, acquired for an immediate or pending use other
than farming. However, a nonresident alien, foreign business or
foreign government, or an agent, trustee or fiduciary thereof, who
lawfully owns over three hundred twenty acres on January 1, 1980, may
continue to own or hold the land, but shall not purchase or otherwise
acquire additional agricultural land in this state except by devise
or descent from a nonresident alien. Pending the development of the
agricultural land for purpose other than farming, the land shall not
be used for farming except under lease to an individual, trust,
corporation, partnership or other business entity not subject to the
restriction on the increase in agricultural land holdings imposed by
section 9H.4.
4. A nonresident alien, foreign business or foreign government,
or an agent, trustee or fiduciary thereof shall not transfer title to
or interest in agricultural land to a nonresident alien, foreign
business or foreign government, or an agent, trustee or fiduciary
thereof except by devise or descent.
