Investing in farmland can be a good decision for several reasons:
- Diversification: Farmland investing is an alternative asset class that doesn’t closely correlate with traditional investments like stocks and bonds. This helps investors diversify their portfolios and potentially reduce risk.
- Inflation Hedge: Historically, farmland and other real assets have provided a good hedge against inflation. The price of farmland tends to increase with inflation, which can protect the investor’s purchasing power.
- Stable Returns: Farmland often provides more stable returns than many other types of investments, thanks to the constant global demand for food. Even in economic downturns, people still need to eat.
- Increasing Demand: With a growing global population and a finite amount of arable land, the demand for farmland is likely to increase. This could drive up the value of farmland investments over time.
- Sustainability and Environmental Impact: There is a growing interest in sustainable and responsible investing. Investments in farmland, especially when paired with sustainable agricultural practices, can align with these interests.
- Potential for Direct Control: If you’re directly owning and operating the farm, you have a higher level of control over your investment compared to stocks or bonds.
- Tax Benefits: Depending on your jurisdiction, investing in farmland can offer certain tax advantages.
- Consider starting your own investment in farms or land call for a conversation about how to get started, how do I manage/operate my land or expand my holdings with considering all options for locations, returns, and tax implications with our farm consultants that specialize in agriculture: Ben Van Dyk 1.403.393.4040 call or text /benvandyk@me.com
