Let's talk farmland

Kevin V

Administrator
So I know farmland as an asset class falls under real estate, but I believe it's unique enough as an investment to warrant having its own place here.

Farmland might also be my favorite investment right now, even though land prices have already skyrocketed. When it comes to long-term investments, I would say it definitely is my favorite.

We already see significant problems with food shortages, which will only get worse. Quality farmland is scarce, and it's becoming more scarce every day. So, I want to help protect it. I don't want my kids and grandkids living in a world where real food becomes a delicacy.

The available farmland in the US is shrinking by over 1 million acres each year while the demand for food continues to increase. As a result, commodity prices will continue rising, meaning cash yields on farmland will do the same. Since the supply is shrinking and the cash yields are likely to increase, farmland just makes sense to me as an investment.

Demands can shift with pretty much every other type of real estate. People might go back to working in office buildings or abandon them altogether, trends could shift from single-family homes to apartments, to condos and back again, but people can’t stop eating.
 
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