[Easemakers Podcast E44] Managing farms, ranches and agricultural properties (and what you need to know about agricultural property tax exemption)
Your principals come to you and say they want to buy a ranch or some kind of agricultural property, and they’d like to set it up as a business to qualify for an agricultural property tax exemption. Now what? Director of Properties and Agricultural Manager Stephanie Galetzki shares everything you need to know in a new episode of the Easemakers Podcast.
Increasingly, principals are interested in buying hundreds or even thousands of acres of land — either because they’re in search of open space outside the city, or because they’re intrigued by the potential tax savings (or both).
But buying a farm, a ranch, a winery or any type of agricultural real estate comes with a lot of questions.
When you’re looking into buying agricultural land, what do you need to know? Does a farm qualify for an agricultural exemption, even if you’re not using it for agricultural production? What goes into qualifying land as agricultural use? And how do farm operations differ from typical estate operations? Can the same property manager care for the principals’ house, their private greenhouse, and the farm buildings?
Colorado based Director of Properties and Agricultural Manager Stephanie Galetzki has helped several families and family offices navigate the process. She knows what goes into turning a property into a working business (whether you’re selling horticultural or livestock products), and when to advise families to simply enjoy the land, rather than worrying about a tax credit. And, she knows how to keep farms running smoothly with the right teams and management strategies.
In this episode of the Easemakers Podcast, Stephanie shares:
- The conversations you need to have with your principal up front
- Reasons to set up land for agricultural purposes and reasons not to (and what each option means for the principal’s lifestyle and their property tax bill)
- How to figure out your tax laws and eligibility requirements, who can help point you in the right direction, and why it’s important to network with other farmers and local government officials
- The differences between an estate and an agricultural property when it comes to staffing, operations, and accounting for expenditures
- How to make sure your bases are covered financially and legally, and why it’s critical to be clear about land use
Plus, get Stephanie’s tips on managing legacy properties, her take on whether your principals should buy a farm out west or in New York state, and her advice for any estate manager tasked with taking on an agricultural property.
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