![]() Adding farmland to your investment portfolio can serve as a hedge against inflation and may help protect the value of your money over time. There are very few investments that often keep pace with inflation, and they are gold, Treasury Inflation-Protected Securities, and physical land. In other words, the value of the dollar has decreased. This means you are paying more for the same goods and services than you did last year. Farmland Investment is a Hedge Against InflationĪs of September this year, the annual US inflation rate was up to a 13 year high.Whether you choose to farm yourself, rent your land out to a farmer or rancher, or sell the land for a profit in the future, the scarcity of land suitable for food production increases the value of your investment. An increase in food demand is an increase in land demand. Only seven percent of the planet’s land is suited to food production, and the majority of that land is already in production. Depending on how you plan to manage your investment, you may decide to purchase irrigated or non-irrigated cropland, pastureland, timberland, or recreational/hunting land.Īccording to National Geographic Magazine, the increasing global population will require roughly double the amount of crops we grow by 2050. The value of farmland varies between regions so take your time exploring different areas before investing. Pastureland gained even more value during this time, rising 6 percent over the year to $3,374 per acre. From 2019 to 2020 non-irrigated cropland rose 2 percent to $5,555 per acre. If you’re not convinced that farmland is a good investment, check out these eight reasons you should buy farmland in Missouri or Iowa.Īccording to the University of Missouri, land values continue to rise throughout the state, often exceeding expectations. When you make a Missouri land purchase, you are diversifying your financial holdings and adding a stable asset to your portfolio. ![]() Farmland is a scarce commodity that steadily increases in value over time. While investing in stocks and bonds has the potential to grow your wealth, there’s another option that many investors overlook. When it’s time to invest in your future, you may immediately think to put your money in the stock market.
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