Is it time to invest in land?

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

A number of factors have come together to provide unique circumstances that may be beneficial to both buyers and sellers of agricultural land, says Curtis Talley, Jr., Michigan State University extension farm management educator.

These include:

•    Strong demand for land.

•    Interest rates at almost all-time lows.

•    Long-term federal capital gains tax rates not seen since 1933.

Institutional investors (pension funds, private equity groups) see farmland as a diversification to their portfolio, an inflation hedge, a safe haven and a source of stable returns, says Talley. Institutional investors seek long-term stable returns of 6 to 8 percent and that can be done with agricultural land. Since 1970, farmland averaged returns of 12 percent annually, better than the S&P 500. The only investment that has shown less volatility than farmland long-term returns has been U.S. Treasuries.

For more information: Go to:

Comments (0) Leave a comment 

e-Mail (required)


characters left

T5 Electro Command™

New Holland has further extended the T5 Series appeal to livestock producers with the addition of the Electro Command™ semi-powershift transmission. Two ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight