Agricultural land

- is typically land devoted to agriculture the systematic and controlled

use of other forms of life—particularly the rearing of livestock and
production of crops—to produce food for humans. It is generally
synonymous with both farmland or cropland, as well
as pasture or rangeland.
The United Nations Food and Agriculture Organization (FAO) and others
following its definitions, however, also use agricultural land or agricultural
area as a term of art, where it means the collection of:

 arable land (also known as cropland): here redefined to refer to

land producing crops requiring annual replanting or fallowland or
pasture used for such crops within any five-year period
 permanent cropland: land producing crops which do not require
annual replanting
 permanent pastures: natural or
artificial grasslands and shrublands able to be used
for grazing livestock
This sense of "agricultural land" thus includes a great deal of land not
devoted to agricultural use. The land actually under annually-replanted
crops in any given year is instead said to constitute sown land or cropped
land. "Permanent cropland" includes forested plantations used to
harvest coffee, rubber, or fruit but not tree farms or proper forests used
for wood or timber. Land able to be used for farming is called cultivable
land. Farmland, meanwhile, is used variously in reference to all agricultural
land, to all cultivable land, or just to the newly restricted sense of "arable
land". Depending upon its use of artificial irrigation, the FAO's "agricultural
land" may be divided into irrigated and non-irrigated land.
In the context of zoning, agricultural land or agriculturally-zoned land refers
to plots that are permitted to be used for agricultural activities, without
regard to its present use or even suitability. In some areas, agricultural land
is protected so that it can be farmed without any threat of development.
The Agricultural Land Reserve in British Columbia in Canada, for instance,
requires approval from its Agricultural Land Commission before its lands
can be removed or subdivided.
Agricultural land systems importance for supporting food security and
sustainable development goals: A systematic review

The Benefits of Owning Agricultural

Land for Farming and Investment

Agricultural land has been a source of wealth, power, and stability

for many generations. Owning agricultural land can be a great
investment as well as a way to provide food security in times of
need. This article will explore the various benefits of owning
agricultural land and how it can be used both for farming and as
an investment.
The first benefit that comes with owning agricultural land is its
potential use as farmland. Many people view this type of property
as an opportunity to grow their food or start a small business by
growing crops on the land and selling them at local markets. Not
only does this help boost local economies, but it also ensures that
families have access to fresh produce all year round. Additionally,
if done correctly, farming can be very profitable over time.
Another advantage of owning agricultural land is its potential to
increase in value over time. Unlike other types of real estate
investments, agricultural properties tend to hold their value
better due to limited development opportunities around them.
With correct management practices, these lands can continue to
generate income through agriculture-related activities such as
leasing out the farmland or offering hunting opportunities on the
property. Investing in agricultural land is thus seen as one of the
most secure forms of real estate investing available today.
In summary, there are numerous advantages associated with
owning agricultural land – from providing food security to
potentially increase in value over time – making it a strong option
for anyone looking for both stable long-term investments and
successful short-term ventures into farming businesses. The next
section will examine each benefit in greater detail so readers can
make informed decisions about using this type of property for
either purpose: farming or investment!
Long-Term Financial Stability
“The early bird catches the worm,” and for those who invest in agricultural land,
this proverb is especially true. Owning farmland has long been a reliable way to
ensure financial stability over time. While it carries its own set of risks, such as
environmental conditions and market fluctuations, investing in agricultural land
can provide both short-term income and long-term appreciation.
In particular, owning farmland allows investors to diversify their portfolios by
offering passive income from leasing or renting out the property. This type of
investment provides a steady stream of revenue with minimal effort on the part
of the investor, providing an additional layer of security if other investments fail.
Additionally, some farmers may choose to produce crops on leased land that
they hold under contract agreements, adding to their overall returns while also
allowing them to take advantage of government subsidies and tax benefits
associated with farming activities.
Finally, agricultural real estate also offers potential capital gains when sold at a
later date — typically after several years have passed — as well as value
appreciation due to improvements made on the property during ownership. With
careful management and strategic planning around purchasing and maintaining
farm properties, investors can enjoy considerable rewards over time without
taking on too much risk. By understanding the nuances involved in buying and
selling farmland, investors can better position themselves for success in any
market condition.
With these advantages come more opportunities for diversification…
Diversification
When considering farm investments, diversification is key. The agricultural
property offers investors the opportunity to spread their risk across multiple
properties, as well as different types of crops and markets. By investing in a
variety of farmland holdings, investors can potentially benefit from high-yield
harvests during some years and lower costs due to market volatility in others.
This flexibility allows for greater control over how much money is generated or
lost with each investment.
Investing in farmland carries many advantages, with tangible assets like
permanent crops, permanent pasture, and arable land providing portfolio
diversification and stability that cannot be found in stocks or bonds.
Furthermore, as agricultural land appreciates slowly over time, buyers gain
access to an investment opportunity with low entry costs but steady returns for
the long term. Environmental stewardship is another notable benefit of owning
farmland; through careful management practices such as crop rotation and
cover cropping, landowners can maintain soil fertility and water quality while
creating a sustainable source of income from their holdings — making this form
of real estate one of the most reliable types of investments available today.
Tangible Asset
In addition to offering diversification and sustainability benefits, owning
agricultural land also provides investors with a tangible asset. This makes it one
of the more secure investments out there as prices tend to remain consistent
even during times of economic uncertainty.
Investing in farm properties offers a range of benefits to buyers, from potential
tax advantages to stable returns over time. With longer-term profits, buyers
may be able to defer taxes on income from sales or rental income on the
property, while incentives like reduced appraisals and lower interest rates are
often available for those willing to invest in permanent cropland, permanent
pastures, and other agricultural use improvements. Additionally, many states
offer estate tax exemptions that allow farm families to pass down their land
without being held liable – further protecting this type of asset while preserving
family legacies. All these factors make buying agricultural land one of the
soundest investments around with its secure pricing structure and long-term
appreciation opportunities, it provides a low-risk way for investors to maximize
returns through careful financial management.

Tax Advantages
When it comes to purchasing agricultural land, there are also significant tax
advantages available for family farmers. Many states offer deductions and
exemptions on farm income, helping landowners keep more of the profits they
make from their investments. For example, some allow landowners to deduct
certain expenses such as seed or feed costs when filing taxes. Other deductions
include those related to depreciation (for equipment) and capital improvements
that help increase productivity over time.
Meanwhile, many states offer special incentives for owners who are willing to
invest in infrastructure improvements. This could mean reduced appraisals and
lower interest rates which will ultimately save money in the long run.
Additionally, these same areas may have laws that exempt farms from estate
taxes – allowing families to pass down their properties without taking a financial
hit due to taxation.
Investing in the agricultural sector provides attractive opportunities to investors
seeking both short-term gains and long-term benefits. By taking advantage of
the various tax benefits and securing farm land loans, owning farmland can be a
great way to maximize your return while minimizing risk over time.

Sustainability and Environmental Benefits

In addition to the financial rewards, owning farmland offers several sustainability
and environmental benefits. Agricultural production is one way to responsibly
manage natural resources while also providing food for local communities –
something that’s become increasingly important in today’s world. Here are
some key advantages:
 Embracing conservation practices: Landowners have the
opportunity to protect their land and its surrounding environment
 through strategic planning. Working with agricultural conservation
easement programs, landowners can develop a plan or enter into an
easement to maintain soil and water quality, wildlife habitats, and even
the overall land area itself. Through these measures, it is possible to
ensure that future generations can enjoy the same benefits now being
experienced by all those who rely upon these natural resources.
 Supporting biodiversity: Farming operations allow farmers to
maintain diverse land cover on their property, creating an ideal
environment for different species to thrive. This includes birds,
mammals, amphibians, insects, and reptiles – all of which play vital
roles in our ecosystems.
 Reducing runoff and erosion risks: By planting crops strategically
throughout each season, farmers can reduce runoff from heavy rains by
allowing vegetation to absorb it slowly over time. They may also plant
trees and shrubs along waterways for additional protection against
erosive forces like wind or flooding.
By investing in agricultural land owner have the opportunity to make money
while contributing positively to both the environment and society at large –
making this type of investment even more attractive than ever before.

Https://pinas.dlsu.edu.ph/gov/agriculture.html