Farmland Investing: Is It Worth It And How To Get Started?

The Financial Freedom Countdown journey has two parts. Accumulating wealth and preserving wealth. Both of these phases involve investing in income-producing assets but with different risk characteristics.

Is Farmland A Good Investment?

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

Farmland investing has a long history of producing stable returns.

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., reducing the amount of farmland available. 

Farms Produce Cash Crops Crops grown on farmland are sold for profit. The income produced by farmland investing can be considered similar to rent.  Gross farm income reflects the total value of agricultural output plus Government farm program payments.  The U.S. gross cash farm income is at the highest level since 2015.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Is Land A Better Investment Than Stock? Land should be considered more similar to real estate than stocks. The best part about investing in farmland is that it is not subject to government interference like rental properties. Or the vagaries of the economy like the stock markets.  Investing in Farmland has five key advantages over stock market investments.

Diversification As part of prudent asset allocation, it is best to have several non-correlated assets in your portfolio. Investing in farmland provides diversification compared to stocks.  The advantage of diversification is that when stocks are falling, the portion of your portfolio invested in farmlands is steady.

Low Volatility Farmland returns are less volatile than other asset classes like stocks, bitcoin, or even rental properties.  No matter what happens to the economy, people still need food to eat. Even if we have a recession or a war, farms continue to produce food.

Asset Backed

Farmland investing can offer investors a consistent income while providing the safety of capital preservation. Every investment has risks.

Swipe Up for more Farmland Investing: Is It Worth It And How To Get Started?

Read more

As Inflation Looms, Here’s How Farmland Can Protect Investors

What Is Generational Wealth And How To Build And Pass It Down

Accredited Investor Qualifications: How To Become An Accredited Investor Without High Income Or Net Worth