SD | jdironman - 2/16/2019 10:58
I guess I always figured 2 1/2 to 3 1/2% return and 2% inflation averaged over time. Farmland ownership also gives you many other things. Ability to tile, ability to build fertility, ability to have long term plan. Stock market may be better returns but sending money to help somebody build their business not yours. My dad always said a farmer with no owned land is like a road contractor without a contract. Always amazed how some farmers will over spend on equipment and buildings, but not try and buy some land. Generally if it easy to buy it probably isn’t going to be a great investment. I am not trying to be smart or cocky at all but unless your name is on the deed than it is not yours.
You need equipment and sheds before you can farm, otherwise you are playing the leasing game. None of us really own the land. The land owns us and the government taxes it for us. Kind of goes back to the 2 certainties in life(death and taxes). The last 6-8 years have been bad time to buy IMO. I made the mistake myself. |
ROI on investing in land
