Agriculture & Ag Tech
Agriculture is a major industry for the Golden State – and has been for over 100 years. California is the largest producer and exporter of agriculture, dairy products, fruits and nuts2. Over a third of the country’s vegetables and two-thirds of the country’s fruits and nuts are grown in California3. With 76,400 farms and ranches1, California agriculture is a $54 billion dollar industry that generates at least $100 billion in related economic activity1.
Given its deep roots in agricultural productivity, it is no surprise that California is leading the nation in Ag Tech. Our state has the critical ecosystem to support cutting-edge developments in this rapidly expanding sector. California is home to one of the world’s top 10 Agricultural Science universities4 and 11 Tier 1 research universities5 making discoveries in everything from seed breeding to biofuel alternatives.
When it comes to growing new ideas, California’s businesses have a clear advantage. Agri-Food Tech startups in this state saw $5.6B in VC in 2020, more than the next four states combined, 20% of worldwide total 6. With world-class R&D, a booming startup scene, and a globally dominating agriculture industry, California has proven again that it is at the forefront of technological innovation.
Popular Programs
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to relocate, stay, or grow in California. Our team provides no-cost consultations to see if your business qualifies.
Partial Sales and Use Tax Exemption
This program, administered by the California Department of Tax and Fee Administration, provides a sales tax exemption of 5.00% for the sale, storage, use, or other consumption of farm equipment, machinery and their parts to qualified persons for use in qualifying activities. The partial exemption may also apply to leases. The partial exemption applies only to the state sales and use tax rate portion. The exemption does not apply to any local, city, county, or district taxes.
Food Production Investment Program
The Food Production Investment Program will help producers replace high-energy-consuming equipment and systems with market-ready and advanced technologies and equipment. The program will also accelerate the adoption of state-of-the-art energy technologies that can substantially reduce energy use and costs and associated GHG emissions.
References
1. CA Dept of Food and Ag, “California Department of Food and Agriculture: 97 Years Protecting and Promoting Agriculture in the Golden State,” accessed Nov. 5 2021
2. USDA Annual State Agricultural Exports Interactive Chart, accessed Nov. 5 2021
3. CA Dept of Food and Ag, “California Agricultural Statistics Review 2020”
4. US News & World Report, “Best Universities for Agricultural Sciences,” accessed Nov. 5, 2021
5. Carnegie Classification of Institutions of Higher Education, 2018 Basic Classification, “Doctoral Universities: Very High Research Activity”
6. Agfunder, Agrifood Tech Funding Report: Year in Review 2021
7. National Agricultural Statistics Service, “2020 State Agriculture Overview,” accessed March 29, 2021
8. Labor Market Information Resources and Data, accessed Nov 8, 2021
9. USDA National Institute of Food and Agriculture
