An Investment Opportunity That Deserves More Attention

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

In 2017, agriculture, food, and related industries contributed $1.053 trillion to the U.S. GDP. This sector, which accounts for 11 percent of total U.S. employment, presents a tremendous financial opportunity still untapped by many investors.

When talking about investing, the common investments that get brought up are the stock market, commercial real estate, gold, and bonds. Yet, farmland outperforms all of these investments with an annual return rate of 11.5%.

According to the USDA, the average value of agricultural land and buildings was 52 times greater in the year 2000 then it was in 1900. In 1900, the average price per acre of farmland was $20, and the average price per acre in 2000 was $1,050. Since then, farmland returns have been positive every single year making it a consistent investment. 

How To Invest In Shares Of Farmland

Investing in farmland can seem intimidating to those still new to the idea. This sector once required extensive knowledge of agriculture as well as the ability to manage a farm to be able to invest. Although, this is no longer the case.

Today, we have online platforms like AcreTrader that make investing in farmland as easy as buying shares online.

AcreTrader typically has 1-3 offerings on its site at any given time. This is due to its rigorous selection process which only accepts less than 1% of the parcels that it evaluates. 

AcreTrader’s platform provides investors with an overview of the farm available. This overview includes photos, net annual returns, gross cash yield, the farm’s primary crop, and more. Investors can simply find the investment that suits them, and with a few clicks, invest in shares right there and then.

The Monetary Value

Investors can make money over a period of time due to the appreciation of the land’s value. Given the rapidly increasing global food demand, and a growing population expected to reach almost 10 billion by 2050, the price of farmland is expected to increase. 

Investing in farmland is great for passive investors because, in addition to the appreciation of the land, investors receive an annual “dividend,” as well as annual cash payments from the farmers renting the land. 

Using an online marketplace makes investing in farmland simple, and with a consistent positive return rate, it makes farmland a no-brainer to add to any investor’s portfolio.

Photo by Federico Respini on Unsplash

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.