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About Investing in Farmland in 2021

Farming Crops
  • How Do I Do This?
    Begin with a consultation to determine.
  • Why Should I Do This?
    It’s an excellent time for the investment and contributes to our food security.
  • When Should I Do This?
    Now is an excellent time!
  • How Much Money Do I Need?
    That depends on the intention with numerous solutions including Grants/loans from usda!
  • Who Will Manage the Farm?
    A professional management company as well as mentors with the USDA.
  • What Do I Need to Know Before I Buy?
    That the intentions of your plan have all been met.
  • What Do I Need to Know When I Buy?
    What is expected of the property, equipment, personnel, yield, revenue.
  • What Do I Do to Maintain and Grow Once I Own?
    A clear production plan and annual goals as well as adapt to new tech to improve yield.
  • How Do I Get USDA or FSA Funding or Grants?
    Selecting a property that conforms to their guidelines, determine what you want to accomplish, come in with a clear plan.
  • What Is the Criteria to Obtain These Funds?
    With 250 loans and 150 grants there are variables of these and each has individual requirements. They can be applied for concurrently.
  • What Are the Rates?
    The rates are based on LTV for example loans and which entity the loan is being obtained ex- 70% of property 60% crops 50% of equipment up to $32million.
  • When Do I Apply?
    Once a property has been identified and a contract has been executed.
  • Where Should I Buy?
    97% of the US is zoned rural, your selection should be based on intent ie. vineyards versus row crops, where you want to live/work, active vs passive income, etc.
  • How Is a Fram Valuation Determined?
    The real property, the crops , the equipment, water, taxes, soil conditions.
  • What Is the Future of Farming?
    It’s the biggest area of growth as food supply in quantity and quality is poor and between Starlink/Elon Musk, Bill Gates/Kroeger, Warren Buffett… these investors are all in for farming. The value of land has increased 40% over the last 2 years and based on the yield per acre with AI, an investor could create a new valuation 10 times higher.
  • What Is the Exit Strategy?
    Apply AI/Robotics to farming to increase the yield per acre and the multiple is the new valuation, which equals new sellable equity.
  • What Is the Williamson Act?
    This provides tax reductions to agricultural property. Iit is a 10-year renewable contract with the state that preserves land for conservation and agriculture. Tax reductions of 25-70% are the direct benefit.
  • What Is a Title Grant Act 1890?
    To preserve farm/ranchland by compensation for best and highest use vs. agricultural. The difference i.e. $80 million land best and highest use as homes vs. $8 million as farms. Applying the Williamson Act states that this land will remain farm land and in exchange the grant of $72 million will be paid on behalf of buyer to seller. If a farmer were to increase the value to $80 million as a farm they could sell it and keep all of the profits.
  • Can a Corporation or Partnership Buy?
    Yes as a matter of fact the structure of this is a big part of the business planning
  • What are the Tax Benefits?
    5% is the opening tax base for Schedule F - there are 183 pages of IRS tax deductions for farmers. Farmers getting tax credits rarely pay taxes.
  • What Kind of Property Can I Buy?
    You can buy
  • Does It Have to Be a Farm?
    No it just has to be recognized as rural.
  • Does It Have to Have a Residence?
    No, it does not!
  • Can It Be Commercial?
  • Can a Nonprofit Corp Do This?
  • Can I Rely on the USDA for Assistance Regardless of Washington?
    Funding for USDA/FAS programs are not political and the funds are allocated in the annual budget currently at $32 billion in loans and grants. The USDA is encouraged to use these funds as they determine increases in the federal budget as mandated. Food is not political, it’s national security.
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