The September LANDTHINK Pulse revealed 44.26% of respondents are optimistic about future returns on farmland investments, rating the future ROI as “Above Average”.
The U.S. agricultural sector is profitable and experiencing continual growth. The U.S. Department of Agriculture reported that farmland prices rose 8% as of August 1st. Many economists expect the value of prime farmland- notably in the Corn Belt region- to see record highs. Corn and soybean prices have been steadily declining, but global demand for food is increasing and prime farmland is in tight supply. These conditions have prompted farming families and outside investors to sink their money into an asset with long-term value.
Last month, the September Pulse asked: In terms of return on investment (ROI), how would you rate the future of farmland investing?
The LANDTHINK audience seemed to be agreement. The general consensus (44.26%) thought future returns on farmland investment would be “above average”, followed by 20.33%, who thought returns would be “average”.
Forbes.com has reported that “farmland has continued to beat the stock market in returns since the late 1990s”. Farming families who reaped the benefits from the boom of recent years, have reinvested their money in tillable land, while carrying much less debt than before. Global demand for quality food, limited land supply, high cash rents, increased biofuel demand and an emerging demand from livestock producers all have investors setting their sights on a solid investment- farmland.
Here’s how the results panned out:
- 44.26% said Above Average returns on farmland expected
- 20.33% said Average returns on farmland expected
- 16.75% said Excellent returns on farmland expected
- 15.79% said Below Average returns on farmland expected
- 2.87% said Poor returns on farmland expected
Thank you to everyone who participated and shared the Pulse with friends and connections in the land industry.
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