Five Easy Ways to Profit From Agriculture Without Farming

Farmland has historically high returns, and you can invest in agriculture with or without purchasing a farm outright. 

Farmland has historically seen stable growth. In the past 20 years in the U.S., farmland has seen average annual returns of  11% – 12%. If we look at this in contrast to real estate, which has seen a growth of less than 9%, farmland seems to be an attractive long-term investment. 

While investing in a farm specifically isn't for everyone, there are a few options for people interested in this type of investment. 

Purchasing Farmland Directly

This option typically requires hundreds of thousands of dollars in investments or a mortgage to pay for the land over time. Even if you are not a farmer, direct ownership in farmland can produce high returns. 

Real Estate Investment Trusts

A REIT is a group of investors who purchase a farmland portfolio and then lease it to farmers. You can research two of the largest REITs are Farmland Partners Inc. (FPI) and Gladstone Land Corporation (LAND). 

Purchase Stocks

This is a good option for people who are already involved in stock trading and are interested in purchasing in the agriculture industry. Large companies that you may want to consider are Deere & Co (D.E.), Monsanto Co. (MON), and DowDuPont (DWDP).