How Agriculture Investment Can Help Your Community
Farm land is a great asset to invest in, but it’s notoriously difficult to get started. That’s because there is limited vacancy and farms don’t come up for sale that often, according to Ben Maddox of Acretrader.com.
If you are interested in an agriculture investment, here are some advantages that Maddox explained in a recent video:
Farmland has great returns in terms of historical performance. It’s a lot less volatile than other asset classes, according to Maddox.
You’ll Own a Real Asset
You are investing in shares of an LLC. According to Maddox, that means you make your money back in two ways. First, you receive an annual cash yield at the end of the calendar year based on the rent the farm is paying. And second, you receive a payout based on the appreciation of that farmland when that property is sold.
An agriculture investment is a great long-term investment that will help you diversify your portfolio. How long you are invested depends on the crop being grown on the farm you invest in, according to Maddox. An annual row crop like corn, for example, might be a 3 to 5-year investment, but a perennial crop like an almond farm, which has a much longer life, is a longer hold, such as 10 years.