There are more than 2.2 million farms in the United States, with the average farm encompassing approximately 435 acres. Farms are fantastic from an agricultural point of view, of course, but what about investment-wise?
If you’re looking into farms for sale, there are a handful of investment benefits that come with the territory as well. Here are a few of those benefits to consider while you think on buying farmland.
High Capital, Low Risk
Historically, data shows that farmland has maintained very strong capital protection characteristics over an extended period of time. Unlike other rapidly depleting resources, like mining, oil, or gas, well managed farmland is a fully renewable resource which remains productive for an indefinite amount of time.
Plus, the more the population grows, the higher in demand fertile farms for sale become.
Stable, Income Producing Asset
Unlike popular inflationary hedges like precious metals, any farm for sale that you choose to invest in will provide steady income. Farmland real estate offers investors reliable rates of income that are usually above 5% annually.
Performs Well in Market Turmoil
Historically, farmland has proven its worth time and time again in periods of market turmoil. The potential of farmland to perform well during periods of recession is particularly attractive to investors concerned about the sustainability of the global economy.
Direct Investment is Fairly Transparent
In a seemingly unending era of bankruptcies, accounting irregularities, corporate fraud, and other complex scams, investing in farmland for sale is actually quite simple. In fact, the concept of ownership of renewable resource real estate has been quite appealing to countless investors.
Provides Tax Planning Opportunities
Unlike other forms of land investment, farms for sale are associated with a specific range of tax incentives. These include income, capital, and inheritance tax breaks. In addition, this can enhance net returns for investors.
In addition to these benefits, there are countless others, not to mention the incredible amount of farmland available in the United States today. There are nearly 920 million acres of farmland across the country, but only about one-third is independently operated by full owners.
These simple and profitable investment opportunities are just waiting to be acted on, and farmland may just be one of the best bets in today’s market.
If you want to learn more about farmland real estate, contact RMA Brokers for more information.