With the legalization of hemp production nationally and CBD developments, there is a strong desire in some areas to build out grow facilities in controlled environments that can have the building and operating business each qualify as Qualified Opportunity Zone Businesses. Hog confinement or other ag support facilities like this can also be Qualified Opportunity Zone Business Property. I'm from an agriculture background myself and shame on me that I haven't thought more as to whether operating farms can qualify in an Opportunity Zone. The original use requirements would kick in for use of any tangible property already on a farm, so existing farmers within a zone would have a hard time qualifying, I believe. On the sale side, though, for people selling their farmland dirt to another new farmer bringing his own equipment into a zone, it could shore up prices and be an incentive for new farmers to get into the industry. With the China trade war and ag commodity prices, it's tough in agriculture now, but there should be a way to market agriculture land in Opportunity Zones in community development initiatives. Small towns in Opportunity Zones should be proclaiming to the world they are in a zone and open for business and that a qualifying investment in a business there meeting all requirements could later be sold tax-free. Opportunity Zone tax benefits don't provide a magic bullet to revitalize rural areas but definitely should be another tool to use when coupled with other initiatives. I'm currently working on a housing project in Iowa coupled with TIF to add housing to a community of 6,800.
