Food demand is always expected to rise, and estimates indicate that it will increase as much as 98% over the next few decades. This could lead to a lot of changes in the agricultural industry, and farmers around the world will need to increase production significantly by expanding farmland and trying to utilize as much as the land as possible. Smart investors who put their money in the right places can expect impressive farmland investment returns.
In the US, the average age of a farmer is 58. As they are nearing retirement age, a huge portion of land is going to change hands in the near future. This supplies the market with numerous investment opportunities. When investing in agriculture, you are investing in actual physical land. Unlike typical stocks that are always susceptible of deprecation, land value is far more likely to appreciate over time – just as long as the right people are involved in caring for it.
How can you get started with investing in this industry? What is an easy way to get farmland investment returns? There are some companies that offer a couple of different options, such as crowdfunding investing or sole ownership. The latter option isn’t cheap – you’d be expected to spend hundreds of thousands of dollars.
With the crowdfunding option, accredited investors can spend as little as $10,000. There might be some simple and low fees involved, and hold periods can start from 5 years. There might be some annual liquidity windows for earlier exit opportunities. Make sure you choose a company that utilizes leverage to help improve the farmland investment returns.
Farmland Investment Returns With Lease at the End of the Hold Period
If you are considering this option, you will probably receive the returns from the appreciation at the end of the hold period, with lease payouts made on an annual, semi-annual, or quarterly basis, and are deposited directly into investors’ bank accounts.
Not every farmland investment companies are going to operate exactly the same. This is why you must take the time to learn all of the options. Read about different companies. It’s in your best interest to invest in farmland through a company that works with all of the best people and experts in the industry. Are the right people put into charge at all of the right locations? An expert in warm weather peach farms might not be the best person for rice crops.
One place to get started with your research is FarmTogether. This organization does work with all of the right people and offers both crowdfunded farmland opportunities as well as sole ownerships. FarmTogether really works hard to bring investors the best farmland investment returns.