2022 Farmland Trends in Idaho
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So far, 2022 has started off very quiet for agricultural development in Idaho. Most of the projects were started at the end of last year and have expanded.
Newer developments are focused on turning land into space for future houses to try to meet the skyrocketing demand of new and old residents looking for properties within the state.
Yet farmland is still a high priority in the state, with good reason. For starters, China is becoming a major purchaser of US farm products. In 2020, China bought over $27 billion in US agricultural products, with a great amount of those products coming right from Idaho.
Buying land for sale in Idaho is more than just picking through commercial real estate listings, or even talking to interested sellers. It’s thinking through the trends in Idaho around agriculture, development, and the bright future ahead for the state’s rising economy.
Why Invest in Farmland in Idaho?
Other than the fact that society can’t produce any more land, there are several reasons to consider farmland. Before pursuing land acquisition, it’s never a bad idea to examine the case for farmland.
Here are a few reasons to consider:
- According to National Geographic Magazine, explosive population growth will require double the number of food crops by 2050. Time to grow more food on the existing land.
- Farmland is a scarce resource; only 7 percent of the earth’s land is actually valuable for food production.
- Buying farmland is a quick way to diversify a commercial real estate portfolio.
- Many states offer specific tax deductions just for land ownership and agricultural activities.
- Farmland lends itself well to passive income: even if you don’t want to use the farm space, plenty of people do. Renting out the land is profitable, passive, and productive.
Farming means something different depending on how connected you are to agriculture.
For some, it’s just empty land, but for others, it’s an opportunity to own a piece of one of the most important economies in America. We need land, we need food, and we can’t live without either of those products.
Initiatives to Protect Farmland in Idaho Increase
Balancing conservative efforts of farmland with protecting private property rights of Idaho landowners is a tricky dance, but it’s one that the state of Idaho is taking head-on.
The focus is to leave enough farmland in the state that agricultural activities can continue, rather than watching land simply be developed.
As stated originally by Idaho News 6, once a piece of land becomes a parking lot, retail center, or other highly-developed space, there is little interest in returning the land back to the way it was.
However, the state is treading carefully, as the price of land in Idaho has only continued to climb.
As the land gets more valuable, plenty of people from land-owning families are realizing that it’s far more profitable to sell the land than try to pursue farming, ranching, or other agricultural activities.
Hemp Pioneering Begins to Expand in Idaho
Idaho is the last state in the country to legalize hemp growing, which means that the farmers are still gearing up. The measure only passed in April of 2021, but this also means that the field is still wide open for pioneers and innovators to come in.
One of the more interesting projects for hemp includes a company in Ketchum that focuses on hemp building materials.
Sustainable building materials is a subject that is wide open and still evolving, but the need is definitely there: many of the building materials we count on just aren’t as environmentally friendly as they could be.
The company in question is called Hempitecture, Inc, and they are excited to be able to directly grow the plant material themselves instead of sourcing from Montana and other places. According to Hempitecture’s website, the focus is on hemp wool, which is used for insulation purposes in the building materials chain.
Key Considerations to Make for Industrial Hemp Growing
Remember that hemp does not contain enough THC to become an illegal crop. At the time of this publication, cannabis is still fully illegal in the state of Idaho.
However, that could change in the future as Idaho looks at its neighbors and more importantly, the tax revenue derived from legal cannabis sales.
The USDA has an entire section on its website devoted to hemp growing, including working through some of the issues and concerns.
If you’re looking into buying land in Idaho and want to cash in on the legality of hemp growing, it’s important to conduct as much research as possible before getting too invested.
Trust the Future of Farmland
Turning to farmland is still considered a touchy subject. When it comes to the world of commercial real estate, there are asset classes that are far flashier. However, there’s something important to remember about the land.
Unlike things like life sciences, people understand land instinctively. It makes it easier to get partners and build joint venture projects that use the land as a springboard for bigger things.
Truthfully, agriculture is one of the most important industries in America. Buying land in Idaho is a gateway to building something visible and long-lasting with the right resources at your fingertips.
There are plenty of local, state, and federal incentives that go into buying land for agricultural purposes, so make sure that you check into all of your resources as much as you can.
Hit the Ground Running for Profitable Farmland Acquisition
Your network is one of the best ways to get started because chances are good that somebody knows more about farmland than you might expect. Farming is a tradition that is here to stay, but that doesn’t mean that it can’t be profitable.
Hitting the ground running includes building a plan that includes not just buying land in Idaho, but building a success plan to break down the many steps required for the project.
Again, this is not something that you want to do as a solo project; bring in a team and let everyone expand the farmland into something profitable, sustainable, and long-lasting.
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