It’s tax season, and investors are formulating strategies to earn a notable return in 2021. With the global increase in demand for food, and farmable land area decreasing, many Investors are eyeing agriculture investments, and with good reason. There are several tax benefits to take advantage of as an agricultural investor. Of course, each deal is structured differently, and we can’t list all the secrets here. We have listed a few in the form of common tax advantages associated with Ag Investing, even how former President George W. Bush does it so darn well.
The United States has historically been a proponent of agriculture as a means of economic growth. As such, all fifty states have developed favorable property tax rates for agricultural land to assist farmers in maintaining their claim to the land, as expansion threatens to turn more fields into sub divisions. Many states weigh a farmer’s claim to these benefits by determining the viability of the farm’s economic standing. A low property tax rate can result in a reduced tax liability for investors, depending on the type of deal they invested in. In certain states, these tax exemptions for agricultural land can be very lucrative for farmers and agricultural investors.
Ag Investing is a prudent way to diversify a portfolio against risk.
