Why Investors say Yes to Alberta Farmland

To young farmers and retirees leaving agriculture, it can be a tad confusing that someone they’ve never met wants to invest in them and their farmland. Albertan farmers love agriculture, and they are called to the rural life, but it’s hard to understand why an investor might want to help them purchase land if that investor isn’t actually interested in farming. Over the years, we’ve found there are many reasons that people are excited to invest in agriculture and help young farmers out.

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Financial Gains is one of the most common motivations for the investors we work with. Many are looking for an investment that offers them future protection of deferred tax liability. Once we explain that being a farmer — even if they don’t farm the land themselves — offers significant tax advantages, investors often become even more interested in the idea. These aren’t the only benefits though. Agriculture investors also have the opportunity of using replacement property rules to an end goal for retirement, and they can benefit from up to $1,000,000 of tax sheltered capital gains.

Secure Investments. The investors who work with Farming Families love how purchasing Alberta farmland is a stable, secure investment. After all, the land is only becoming more valuable over the years, and it can’t be stolen. We provide investors with an opportunity for secure, financial gains, without the need for them to manage or farm the land themselves. Instead, we work with young farmers to keep the land productive, and our investors benefit from transparent farm management.

Philanthropy. Some of our investors choose to invest in farmland not only because it’s a good investment, but also because helping a new generation of farmers do what they love feels good. As an investor, they are helping to create a family legacy for future generations and participating in helping to feed the world. Some value that their investment gives them the opportunity to expose their friends and family to farmland appreciation, and that it grants them the ability to go out into rural areas and enjoy the fresh air. Others wish to participate in rural communities and events, so they become members of 4H clubs and other farm groups.

Farming Families is a knowledge based association of specialists that work to bring an investor, a new farmer, and a retired farmer together. We understand that this trio creates a solid team that will help Alberta’s agriculture industry to succeed. Our association helps each trio with their accounting and explains how the taxation works. We’ll provide each team with real estate services and aid them on the legal side.

Our financial services allow farmers and investors to work with an expert to understand agriculture investments, insurance, and estate planning.

Alberta agriculture is dependent on investors, young farmers, and retirees working together to see that farming continue into the next generation. Farming Families wants to help. Call us today at (403) 277-2605.

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