Agriculture & Ag Tech
Agriculture is a major industry for the Golden State – and has been for over 100 years. California is the largest state producer and exporter of agricultural products, including key commodities like dairy products, fruit, and nuts.2.Over a third of the country’s vegetables and nearly three-quarters of the country’s fruits and nuts are grown in California.3. With 69,900 farms and ranches1, California agriculture is a $49 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 15 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. AgriFoodTech startups in this state saw $5.3B in VC in 2021, accounting for approximately 18 percent of the 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. California Department of Food & Agriculture (CDFA)
2. USDA Economic Research Service
3. California Department of Food & Agriculture (CDFA)
4. US News & World Report
5. Carnegie Classifications of Institutions of Higher Education
6. AgFunder
7. USDA National Agricultural Statistics Service
8. California Employment Development Department (EDD)
9. USDA National Institute of Food & Agriculture (NIFA)