If you’re thinking about purchasing farmland, you’re probably asking yourself if it’s worth the investment. The answer is simple: yes. Below is a list of five reasons why investors value farmland.
Farmland Is a Secure Resource
One of the reasons why investors value farmland is because farmland is a secure and stable resource. The planet has an abundance of farmland for investors and farmers to get their hands on. Investors see value in the fact that their capital will always be available and secure.
It Offers Stable Returns
Investments in farmland offer stable returns. Since farmland produces crops and other valuable resources, it’s constantly needed. Therefore, farmland presents stable returns for investors and farmers alike. As long as the farm produces high-quality crops or livestock, there’s no reason why the investor shouldn’t have a steady stream of income coming in.
Farmland investments are generally low-risk. Since the resources are so abundant and the returns are so stable, farmland investments rarely depreciate suddenly. As such, the farming business tends to be less risky than other business investments.
It’s a Unique Investment
Investing in farmland adds a bit of flair to an investor’s portfolio. Most people in the business world might expect a businessperson to invest in the housing market or in oil, but an investment in farmland will differentiate them from the pack.
It’s More Transparent
One of the biggest appeals of investing in farmland is that it’s more transparent than investing in another business. Other areas such as the housing market may involve complexities that make the investment a little riskier. With farmland, you’ll know exactly where your money is going.
We as a society need farmland now more than ever. Growing more crops and raising more livestock on farmland will hopefully reduce our reliance on processed foods, and—if managed correctly—it’s good for the environment as well. Do yourself a favor and consult Crosby & Associates’ land realtors today. Your pockets will be lined with cash soon enough.