Pulse Results

Pulse: Strong Returns on Farmland Expected to Continue

Pulse: Strong Returns on Farmland Expected to Continue

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:

August 2014 LANDTHINK Pulse Results

  • 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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This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.

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LANDTHINK

LANDTHINK is part of the LANDFLIP network of sites and brings together the various components of the land industry and provides knowledge and information to land investors, owners and professionals to create a stronger land marketplace. Get land smart!

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