Is farmland a good investment for 2021? For most people, the answer is absolutely yes. Here’s what you need to know.
Is Farmland a Good Investment for 2021?
If you’re a savvy investor, you know that buying farmland can be a smart choice – and you’re playing the long game. A farm can become very profitable for you, provided that you do your homework before you buy and that you have realistic expectations.
Why Farmland is a Good Investment for 2021
Some of the reasons farmland is a good investment for 2021 include:
- Farmland may be exempt from some taxes
- You may qualify for government grants if you’re growing crops or raising livestock
- There’s a rising food demand across the U.S. right now
Let’s take a closer look at each.
Investing in a Farm: Farmland may be exempt from some taxes
Although you’ll need to talk to a tax professional, and although this isn’t tax advice, you need to know that if you use land as a farm, the income you generate from it may be exempt from the wealth tax. And like a mortgage loan, the interest you pay on a land loan may be deductible on your taxes.
Investing in a Farm: You may qualify for government grants if you’re growing crops or raising livestock
Federal and state grants exist for people who grow crops and buy livestock. Both of those things can also generate income, which means it may be a comfortable investment for you.
Investing in a Farm: There’s a rising food demand across the U.S. right now
When you grow food, you have a commodity that sells – and there’s a rising food demand across the United States right now, as comes with every population boom. That means farmland may be a good investment for 2021 – particularly if you’re interested in selling crops or livestock.
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