Why invest in farmland?

Investing in farmland can be a good decision for several reasons:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Tax Benefits: Depending on your jurisdiction, investing in farmland can offer certain tax advantages.
  8. 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

About ben

Immigrated to Canada in 1980 and dairy farmed for 9 years, obtained real estate license in Alberta in 1989 and have been selling Farm Real Estate for 32 years. Specializing in Farm/land investment, farm relocation and farm families immigrating to Canada, organizing business and farm immigration seminars, sales of quota (milk, poultry), water rights, irrigated land, crop farms, farm corporations (shares) ranches, livestock (Cattle, hogs) and commercial farm investment.
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