When it comes to investing, choosing where and how to spend your hard earned cash can be difficult. While some investors choose precious metals and energy, others are plowing into farmland. Here are three reasons why investing in farmland today, and historically, has been popular:
1) Attractive risk and returns
2) Provide for portfolio diversification
3) Hedge against inflation and stability
When it comes to performance, farmland competes well with other investment opportunities when considering the return on investment (ROI) or dividend you will receive on the land.
Return on Investment
Unlike some real estate investments, row crop farms have nearly a 100 percent occupancy rate with good competition for leasing opportunities. Historically speaking, those same acres produce a three percent ROI (dividend), which has been a benchmark for farmland and lacks in huge fluctuations. No double digits, but steady, and the last five years have been average with record incomes for farmers and landowners alike.
Farmland provides solid historical results and can be an excellent part of an investment portfolio, and while simple on the surface, there is complexity.
From the day-to-day operations to planning for future generations, Busey Ag Services and Busey Farm Brokerage will provide the resources you need to grow forward. To get started, call us today at 1.800.67 | Busey.