Updated: Jan 23, 2019
If you are considering purchasing property with land that has the potential for agriculture and farming, you will, of course, want to know how it can benefit you. Today, we will walk you through some of the benefits you can expect by choosing to delve into the world of farming and agriculture.
Capital security and low levels of risk
For the most part, the values of farmland and farm properties are not as changeable as those of residential homes and as such, this makes them a far lower risk investment. In fact, studies have shown that the majority of agricultural land investments can provide strong capital protection in the long term. Part of the reason for this is that agricultural lands have been found to increase in value faster than inflation, providing a useful barrier against it.
There are a variety of different types of agricultural tax exemptions and you don’t necessarily need to be a full-time farmer to take advantage of them. The exact size of agricultural property tax exemptions varies between states because property taxes aren’t administered at a federal level, and qualifications vary too. Some states will base eligibility for agricultural tax exemptions on the size of your property, while others will set a minimum dollar amount for agricultural sales of goods produced on the property. Even just a single cow or sheep grazing on your land could be sufficient to trigger tax advantages.
Running your own business
As well as embracing life in the country and the peace and tranquillity that it can offer, buying farmland also gives you the opportunity to earn a living, running your very own business. We live in a growing, hungry world and the demand for food, and in particular - organic food has grown dramatically over the last decade. In some areas, demand for organic food is growing so fast that consumer demand is outstripping supply. While it can take a while to convert an existing farm to producing organically, the rewards from selling your produce can be great. Even if you stick to conventional farming, growing populations mean that there is still significant demand for produce. Whether you look at it as a second income or you throw yourself wholeheartedly into becoming a producer, the chance to earn extra money through farming and agriculture is a significant benefit.
Something for everyone
One of the best things about purchasing land is that there is nearly always something to suit everyone. If planting and harvesting crops doesn’t appeal to you, you could instead look at one of the selections of alternatives such as running a dairy, tree crops, animal farm or even a vineyard. You could rent out areas for camping or hunting, or if you have a lake then consider setting it up as a fishing spot. And of course, you don’t have to do anything your land at all if just want to keep the space around your property free from visitors and just for you and your family to enjoy.
If you would like to learn more about the benefits of agriculture and farming, Jason DurJava at California Ag & Ranch Style Real Estate would be delighted to assist you. With extensive knowledge and experience of the California agricultural market, we can help you find the country property with the acreage you have been dreaming of. Call us today at 209-431-0400.