Microfarming and Agrihoods in Real Estate! What is this Trend in Real Estate About?

We hear about Farm to Table restaurants popping up in Ann Arbor and other cities near us.  The concept is amazing.  Everything you are eating is fresh from a local farm.  Everyone knows about this trend, but what about what’s going on in real estate for property owners that love the farming and fresh eating concept?  

There’s news of some people using their acreage for microfarms to raise small livestock and have what is called microfarms to eat fresh and make a living doing so!  Families / individuals living on microfarms are functioning on 5 acres of land or less!  They can grow crops and raise livestock at a smaller scale!  These microfarms can be in the middle of cities and their surrounding areas making it possible for anyone to farm!  The cost to start a micro-farm is anywhere from $600 to $10,000 depending on size of farm, livestock purchased, and crops grown.  Despite their size, these farms can be quite profitable!  

There are also tax benefits in this lifestyle where you can deduct expenses including feed, fertilizer, seed, labor help, and livestock.  You can become farm tax exempt in Michigan under MCL 324.3601, which is where the property owner can receive state income tax credits for property taxes paid if the farm is 5 acres minimum in size and 51% or more of the property is solely used for agricultural purposes.  You can get your farm license which is an F endorsement issued by the Michigan Secretary of State.  To add this endorsement to your license you must pass both the Commercial Drivers License and General Knowledge and Combination Vehicles Test for just $5.00.  Also farmers do not need building permits in Michigan.  Agricultural buildings are exempt from the requirement that an owner apply for and obtain a building permit.  

It’s a big trend out West to have microranches and microfarms with gorgeous luxury homes on the property that have a farm and / or ranch lifestyle all in one.  This could so easily be accomplished as well right in our area!  

Have you also heard the news of Agrihoods being started in the US over the past 5 plus years?  Agrihoods are Farm-to-Table neighborhoods in master planned communities.  The question is, will they become big in Michigan and what is the lifestyle?  It would be so amazing if real estate investors would start buying up big areas of property in our area to create this lifestyle of living.  In an Agrihood, there is a central farm where the whole neighborhood can contribute labor and small fees $20-25 a month to benefit from the farm life and share of the bounty.  Some notable Agrihoods in America that you can research are Willowsford in Ashburn, Virginia; The Cannery in Davis, California; Agritopia in Phoenix, Arizona; Prairie Crossing in Grayslake, Illinois; Serene in Chattahoochee Hills, Georgia; and Bucking Horse in Fort Collins, Colorado.  Some of these Agrihoods offer far more than just the sharing of farm labor and the bounty.  They have agri-classes to learn farming, gardening and herbs, nature hiking trails, campsites, parks, boathouses with amenities for those with lakes and ponds, and small businesses that benefit the residences within the Agrihood.  One of them even has a charter school in the Agrihood community grounds. This would be so cool to see come to Michigan! 

There is still plenty of vacant land opportunities available in Livingston County and surrounding counties where there are some large lots for sale, some with agricultural zoning in Livingston County.  Contact us today if it’s in your heart to seek out property to become a micro farmer right in our ever growing community!  And Real Estate investors, we’d love to talk about this new endeavor of Agri-hoods with you!  It’s just too cool!

References:

https://www.countrylivingc.om/home-design/g3341/farm-to-table-agrihoods/

https://www.network.land.com

http://www.honeycombcredit.com

http://www.motherearthnews.com

http://www.hellohomestead.com

http://www.trigreenequipment.com

http://www.fosterswift.com

http://www.michfb.com>agriculture