Reasons to Invest in Farmland

We’ve talked about the splendid lifestyle that comes with owning and working on a farm. We’ve also made note of some of the lessons that to be learned growing up on a farm. This blog is about why farmland is a great economic investment not just a culture and lifestyle one. Here are two reasons to invest in farmland.

Reasons to Invest in Farmland - Farming for Freedom - Alberta Farmland Investments

The World Needs Food. The Earth’s population is continuing to grow, and as much as some young people might disagree, they don’t need iPhones to live –but they do need food. As the demand for food and crops continues to steadily rise in developing economies like China and India, the value of agricultural commodities like land is also going to increase. We only have one planet, and land isn’t something that can be manufactured. On the contrary, as cities continue to sprawl across fertile farmland, we’re actually losing our supply of land. This increases the value of farms even more.

Competitive Returns. A return on investment or ROI is a measure of how efficient an investment is.  It gives investors an idea of how much profit they can expect in relation to the amount of capital they put in. In the past, the ROIs for Canadian farmland were competitive when compared to more typical investments such as equity, bonds, and real-estate. Investing in farmland is also an excellent way to diversify your investments. The returns generated by farmland are generally quite independent of the ROI seen in the more traditional investments. As those fluctuate with market values, farmland generally remains quite consistent.

There are many good reasons to begin investing in farmland. Farmland has the potential to help protect you against inflation. It also has generally low volatility. Fluctuations in the market value of farmland are rarely more than modest, year after year after year. It makes a stable investment with low risks. The experts at Farming Families have the years of experience, integrity, and knowledge to help you make the best decision when moving forward towards an investment in farmland.

Need help exploring your options and researching questions about farmland investments? Call Farming Families today at (403) 277-2605. Together, we’ll help you reach your goals.

Connect with us