Investors Turn to Farmland
Investors Turn to Farmland
Farmland, once the arena of institutional investors, is fast becoming an attractive investment option for the average investor. The major factors driving this trend are rising global demand for food, the shrinking supply of arable land, and climate-related factors. Now faced with more options than traditional deed ownership — including private funds and publicly traded real estate investment trusts (REITs) — individuals are finding farmland an increasingly attractive investment opportunity. As an asset, farmland tends to perform well in inflationary environments and addresses growing food and land scarcity concerns. Like the housing market, farmland prices are on the rise. The average value of farmland real estate (land and buildings) hit a record of $3,380 per acre in 2021. According to commercial real estate analytics firm Green Street, US farmland posted an average annual return of 11.2 percent for the 25-year period that ended in March 2021. Read more HERE.