How to get started with agtech and farming investments?
in Business, Accounting & Taxes ·
Anonymous said:Thanks for the input.
So, if I'm looking for some decent land right off a main road, I should probably budget somewhere between $3,200 and $4,300 per acre...
Assuming you can even find anything like that out in the Midwest...
It’s not actually as bleak as people think. On average, acre prices hover around $2,000–$3,000. If you’re grabbing a few acres in one go, you won't pay more than $2,000. You'll mostly be buying from retirees...
Look at it this way: buy 5 acres on credit—obviously. You get a 25% tax credit as a capital investment in the first year. Plant an orchard and grab a subsidy that covers your planting and sapling costs. Once the orchard is in, you convert the farmland into orchard space and start collecting an annual subsidy of
$0.83 per acre. 5 x 2,500 = $4.25. Loans run for about 20 years. My point is, investing in land pays off because the subsidies basically pay for the dirt you bought. Right now, the government is handing everything out—you just have to commit to planting. If a 20-year loan sounds too long, you can realistically pay off the land within 2–3 harvest seasons. And no, it’s not true that you need hail netting or fenced acreage to qualify for the subsidy. It’s simple—just plant the orchard.
On the subject of walnuts—don't assume you can just plant them, let the grass grow, mow it occasionally, and wait 10 years for a payday. Like any other crop, walnuts require actual work.
Cheers!