Is Farmland A Good Investment? 4 Factors To Consider

Farmland is one asset class that has been a favorite of billionaires for centuries and is a great way to diversify your portfolio. But is farmland a good investment?

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The returns are due to increasing farmland values and the profit from the cash crops.

No one is making more land. As the population keeps increasing, we need to build more houses, acquire more land for transportation, shopping, etc., reducing the amount of farmland available.

Farmland Value Increases

The income produced by farmland investments can be considered similar to rental income.

Farms Produce Cash Crops

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Gross farm income reflects the total value of agricultural output plus Government farm program payments.

Why Invest In Farmland?

Growth stocks tend to do well in low-interest-rate environments since institutional investors are willing to pay a premium for future performance even if the companies are making a loss currently.

Bear in mind that farmland investment is long-term compared to the stock market, where you can trade at the click of a button.

Farmland Crowdfunded Real Estate

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