The Time to Invest in America's Limited Farmland is Now

August 10, 2020

Every investor is looking to acquire stores of value available in finite amounts.  Farmland fits this description.  The global population continues to swell, arable land continues to decrease and humans have an insatiable hunger for food.  This is precisely why more investors are investing in America’s limited farmland. 

Farmland has Low Volatility and Reliable Returns

The current economic trough has sent investors scrambling for low-risk investments likely to produce consistent returns regardless of how bad the economy gets.  As a result, farmland is becoming that much more coveted.  Though farmland is comparably illiquid, it provides consistent and strong returns, especially when juxtaposed against other asset classes.  American farmland returns have similar, and in some cases less volatility than the returns of other investments such as 10-year bonds and even the S&P 500.  Though farmland return volatility is comparably low, it has outperformed the forementioned bonds, providing higher yields.  It simply does not make sense to invest in a low-yield bond that is debt-based or the comparably risky S&P 500 when farmland is likely to produce consistent gains regardless of the state of the economy.

Farmland Diversifies Your Portfolio

Take a close look at your portfolio and you will likely find the majority of your money is invested in stocks, mutual funds and ETFs that are inherently risky.  Even if your money is parked in supposed safe havens such as mining stocks and blue chip value stocks, there is no guarantee they will generate positive returns as the economic recession plays out.  Alternatively, farmland is nearly a surefire guarantee to produce steady returns across posterity. This is the perfect time to diversify your portfolio with the addition of farmland.  This alternative asset class reduces your investment risk, diversifies your portfolio and ultimately helps you sleep soundly at night.

Act Now - the Competition for Farmland is Heating Up

The demand for farmland is steadily increasing as more investors take note of this asset class’s rock-solid returns, minimal risk and potential for even higher valuation in the years ahead.  Farmland supply is inherently limited. The demand for food will continue to soar as the world’s population increases.  The growing imbalance between supply and demand will inevitably make farmland that much more of an attractive investment.  Farmland will continue to appreciate at a rate that proves more than satisfactory to investors, hiking the competition for America’s limited arable land all the more. Now is the perfect time to invest in farmland.

FarmCek Makes Farmland Investing Easy

It is clear this is the optimal time to invest in farmland and FarmCek makes the investment process simple. We focus on high profit potential, domestic specialty crop operations. Exploring these opportunities is simple. Sign up for a FarmCek account, determine the farmland investment best for you, easily invest in just 3 steps, then monitor your farmland investment in your farmland investing dashboard. Click here to create a complimentary FarmCek account and begin exploring available farmland investment opportunities.