Single Iron Management

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Investment Opportunity in the Agriculture Sector

Where is a good place to put your hard-earned money? This is a great question and first off, we are not a financial advisory group and do not give financial advise. This post is simply an educational tool and you can decide to further investigate your options.

Agribusiness is just as it sounds. The business of doing anything within agriculture, from production to technology to distribution and so on. The opportunities this industry presents for financial gain is vast. If there is one thing in common with the entire population on our planet, it is our dependency on agriculture. We all need to eat, right?

Our main focus here at Single Iron Management is the real estate investment opportunity and we specialize in this sector of the market. But there are vast industries to invest in including but not limited to the agritechnology, production, packaging and so forth.

The Opportunity Zone program was established as part of the Tax Cut and Jobs Act of 2017. This program is a social impact program providing material tax benefits to incentivize investment within underserved communities across the U.S. 22% of the Opportunity Zones are located in rural America.

Qualified Opportunity Zone businesses can be involved in real estate, retail, manufacturing, food, energy, research, services and other activities. Individuals and businesses can delay paying federal income tax on capital gains until 2026; in addition, they can enjoy up to a 15 percent increase of their basis in those gains by investing in Qualified Opportunity Funds that in turn, invest at least 90 percent of their assets in businesses or tangible property located in low-income areas. In addition, gains on investments in the funds can be free of federal income tax if the investment is held for at least 10 years.

The rural community in the U.S. can benefit from the $2.3 trillion of untapped capital held by U.S. investors. And the investor can defer, reduce or even eliminate capital gains taxes, resulting in the ability to potentially double their after-tax profits compared to a typical portfolio. It is a win/win for both parties.