WHY INVEST IN FARMLAND
Explore the many reasons that we believe United States farmland is an attractive investment.
AN INDUSTRY THAT MATTERS
Ownership in a farm operation allows investors to learn about the many aspects that go into a real working farm and the hard work that goes into feeding the world.
DEMAND FOR FOOD
By 2050 the world population will grow to over 10 billion people. An additional 3 billion people will enter the middle class causing food demand to sky rocket.
MORE STABILITY THAN THE STOCK MARKET
Since farmland is uncorrelated with most other major asset classes, it has proven to perform well during challenging economic conditions.
THEY'RE NOT MAKING ANY MORE LAND
The U.S. alone loses almost 500,000 acres of farmland a year. That’s a loss of nearly 15,000,000 acres of farmland by 2050.
LONG TERM INVESTMENT STRATEGY
Farmland is an attractive, long-term investment that has the potential to provide relative resiliency to challenging economic conditions.
HEDGE AGAINST INFLATION
Over time, farmland has proven to have a positive correlation with inflation. More so than bonds, the stock market, and even gold. On average, no investment offers a hedge against inflation like farmland.
With food demand expected to increase up to 98% by 2050, agricultural markets will be changing like we haven’t seen before. Farmers across the globe will need to increase crop production by expanding the amount of farmland being utilized and by enhancing productivity on existing land. Farmland is truly the most important asset in the world. This is why considering ownership in farmland can be an extremely beneficial move. They don’t make any more of it!
There is no better asset to own than one that increases in value over time and keeps pace with inflation. What if you could invest in something tangible that produces worldwide benefits? According to one study, one of the last things people are willing to cut from their budget is food. Here are some of the various benefits an investment in agriculture can provide.
As with any investment, there are risks associated with agricultural investments. Some of the risks in this particular asset class include drought, fire, pests or disease that could damage crops. Politics can also play a hand when it comes to agricultural restrictions and risks.
Minimizing Risks Associated with Farmland Investments
Geographic and commodity diversification can usually protect against any risks. Hedging and crop insurance are also available for some commodity crops. When investing in farmland, you want to work with a partner who has a proven track record for successfully managing farms and an eye for finding high-profit potential properties that have as little risk as possible.