Investing in Agriculture: Five Ways to Profit Without Farming
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).
Large companies that you may want to consider are Deere & Co (D.E.), Monsanto Co. (MON), and DowDuPont (DWDP).
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