About Investing in Farmland in 2021

Begin with a consultation to determine.

It’s an excellent time for the investment and contributes to our food security.

Now is an excellent time!

That depends on the intention with numerous solutions including Grants/loans from usda!

A professional management company as well as mentors with the USDA.

That the intentions of your plan have all been met.

What is expected of the property, equipment, personnel, yield, revenue.

A clear production plan and annual goals as well as adapt to new tech to improve yield.

Selecting a property that conforms to their guidelines, determine what you want to accomplish, come in with a clear plan.

With 250 loans and 150 grants there are variables of these and each has individual requirements. They can be applied for concurrently.

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.

Once a property has been identified and a contract has been executed.

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.

The real property, the crops , the equipment, water, taxes, soil conditions.

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.

Apply AI/Robotics to farming to increase the yield per acre and the multiple is the new valuation, which equals new sellable equity.

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.

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.

Yes as a matter of fact the structure of this is a big part of the business planning

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.

You can buy

No it just has to be recognized as rural.

No, it does not!

Yes

Yes

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.