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?

Farmland investing has a long history of producing stable returns. The returns are due to increasing farmland values and the profit from the cash crops.

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Farmland Value Increases

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

Farms Produce Cash Crops

Crops grown on farmland are sold for profit. The income produced by farmland investments can be considered similar to rental income.

Why Invest In Farmland?

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Farmland offers a unique ability to provide inflation projection without the volatility of stocks.

Performance Of Farmland Investing

As per the report, the value of all types of farmland increased by roughly 15% year over year due to a robust agricultural economy and historically low-interest rates.

Is Farmland A Good Investment Still?

Farmland increases in value when agricultural products increase in value since the underlying land becomes more valuable.

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