While many people know Florida for its sandy beaches and world-class amusement parks, the state is also recognized as one of the top agricultural states in the country. Farming is a big industry here. Florida has more than 500,000 acres of orchards (59% of the US grapefruit average and 57% of US citrus average) and it ranked 4th among all states in terms of total vegetables harvested, according to the 2017 Census of Agriculture.
If you’re looking to expand your investment portfolio or have always dreamed of running your own farm, there is a lot of upside to acquiring an agricultural property in Florida. Every year, people from all over the world move here to start farming and live off the land, and there couldn’t be a better time to do it. Here are some of the top benefits of investing in an agricultural property in Florida this year:
It’s A Tangible Asset
If you’re looking to invest in a tangible asset, an agricultural property is an excellent choice. According to the American Farm Bureau Federation, farmland averaged $3,160 per acre in 2020 nationally, and it continues to show year-over-year growth. Many believe that number may be even higher in certain parts of Florida. This isn’t to suggest farmland is a risk-free investment. Environmental and market fluctuations can both impact your returns; however, farmland is a tangible asset that can certainly boost your portfolio.
It Pays Off In The Short Term And Long Term
Investing in an agricultural property can help you build wealth in a couple of different ways. Crops, meat, and other commodities can produce steady streams of revenue in the short term, while your farmland will appreciate over time. While farming is anything but passive income, you can build a business or lease out your property in order to take more of a hands-off approach. You can even stage your farmland as a wedding venue. With so many ways to generate revenue, it’s easy to live off the land and an agricultural property is a smart way to diversify your investments.
There Are Federal and State Tax Advantages
If you’re planning to actively run a business on your agricultural property, then you’ll be able to benefit from deducting materials, equipment, and supplies required to operate your business from your taxable income. Additionally, owning farmland in Florida has a major state tax benefit. Florida has The Greenbelt Law, which allows agricultural properties to be assessed at a significantly lower rate, which can put money right back into your pocket. Additionally, agricultural producers can benefit from sales tax exemption on numerous products, feed, and farm-related equipment.
Owning and operating farmland is something to be proud of. Producing food, supporting biodiversity, and embracing conservation are all common agricultural practices that result in significant environmental benefits. Sustainable farming practices help to preserve natural habitats and support local ecosystems, which has never been more important.
If you’re in the market for farmland, trust a professional land broker to help you find the right agricultural property. There are a lot of factors to consider when choosing a piece of land, and land transactions can be highly complicated. Don’t attempt to do it alone. Trust Palmetto Realty to help you find the right amount of quality acreage, so you can be in the best position to maximize your investment. We have listings with plenty of acreage available right now. Contact us today!