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Farm LandAs demand for food increases farmland has become increasingly attractive to both US and overseas investors. While new buildings can built, land cannot be created and is proving to be a stable long-term investment.

USDA reported farm real estate value (land and structures) was $2.38 trillion in 2014.  Farm land is often rented to local farmers. Owning a number of farms in various locations can increase the variety of crops grown, insuring against one crop experiencing a lower yield.

Investor farms typically grow corn, soybeans, wheat and cotton. Specialty crops are becoming attractive as an investment and specifically blueberry farms are being acquired in Michigan.

According to USDA Land Values Summary (August 2015), farm real estate value (land and buildings) in Michigan has increased 4.3%.

Source: DesMoines Register

Source: USDA

Source: Economic Research Service USDA

Source: CNBC

 

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