Why Farmland Is An Investment You Should Consider
We all know that money doesn’t grow on trees. But did you know that money can spring up from farmland?
If you’re looking to add to your retirement portfolio, consider investing in farmland, an easy way to bolster returns and hedge against market disruption. Adding farmland can also increase your portfolio’s diversity, which can protect you from market volatility and continue generating income should a significant, widespread economic downturn occur.
Unique Value Proposition
Farmland can claim a unique value proposition in that it exposes investors to markets where demand is unlikely to decrease over the long term. How so? The planet’s supply of arable land is steadily shrinking, which only increases the value of American farmland, both as real estate and a population-feeding asset. That kind of built-in, tangible growth isn’t often found in other investments. Farmland also provides three reliable income streams: crop sales, lease payments, and capital appreciation. According to David Chan, chief operating officer of the farmland investment platform FarmTogether, “Farmland is uncorrelated with most asset classes, and has provided consistently positive returns over the last several decades.”
In addition, farmland makes for a strong retirement-funding investment choice because it’s largely a passive, long-term endeavor. The stability of farmland investment means you won’t need to constantly monitor stock prices or try to anticipate the effect of economic downturns on your investments. Regardless of whether the market is down or inflation is up, people will always need to eat and farmland will always be the answer.
Investment Accessibility
You don’t need to know how to grow cabbage or kale to cultivate some green: Investment platforms like FarmTogether offer investors a convenient, easy, and affordable way to invest in the farmland market and make smart choices – even if you’ve never stepped foot on tilled soil. FarmTogether’s team of investment experts helps reduce the risks of farmland investing so that its members don’t overpay for land, select land that isn’t sustainable, or choose the wrong operator partners.
“We start with selecting only top-quality institutional-grade farmland. We then monitor long-term risks by having a comprehensive and conservative underwriting process and partnering with highly experienced operators,” Chan explains.
FarmTogether clients control where their investment goes – everything from farm location to the actual crops grown. Users have complete access to their investments and can closely monitor returns, all with just a few, quick taps on their smartphone.
Whether you’re nearing retirement age, just entering the workforce, or somewhere in the middle, today’s increasingly unpredictable economic environment calls for smart investing alternatives to the usual stocks and bonds. Farmland fits the bill, both as a portfolio diversifier and a producer of robust returns. Clearly, farmland investing offers a promising opportunity to reap what you sow.