All investments involve a certain degree of risk. Businesses fail, stocks and currencies can be volatile, and tourism waxes and wanes. Large retail stores are closing daily, foreign currency can plummet with no warning, and that luxury, all-inclusive golf resort in Turkey can be destroyed overnight. Finding the right investment to provide a high return is getting more difficult. Investing in farmland presents a low risk while providing strong capital protection. Yes, crops can fail, but the devastation is not permanent. The investment is tangible and transparent, making it ideal for both beginning and experienced investors.
Farmland provides an income producing asset that shows no sign of stopping. The constant increase in population translates to a high demand for food. Fruits, grains, vegetables, and livestock utilize millions of acreage across the country. Advanced technology, efficient land management, and disease resistant seeds add to the reliability of crops. More food is being harvested at lower costs. That makes farmland valuable and profitable. It has also proven to be more stable during times of real estate market turmoil. While homes and commercial property value declines, farmland tends to retain more of its original value. It is possible to receive a higher return on the investment when purchasing land at auction. Most auction land is sold at fair market value, but is less than the cost of purchasing land in a seller’s market.
Another reason to consider investing in farmland is a variety of applicable tax breaks and incentives. Capital, income, and inheritance tax breaks can be planned for, and taken advantage of, when farmland is purchased. Investment opportunities are readily available because only one-third of all farmland is operated by independent owners. The vast majority is owned, managed, and operated by investors. The best way to explore the possibilities of ownership is to consult with an experienced real estate firm, such as RMA Brokers, that specializes in ranches and farmland throughout the West. They can explain the intricacies of livestock management and needs, agricultural production, and the current value of available land. Prospective investors can search for farmland by state, type, or price range to determine if the investment opportunity will suit goals.