Photo courtesy of The Los Angeles Times
The Los Angeles Times reports that many investors are suggesting their clients invest in farmland over stocks until the market improves.
The average U.S. real estate price has double over the past ten years to $2,140 according to USDA’s National Agricultural Statistics Service. Some banks have seen a demand for business lending by 12% from 2008 to
2009 for agricultural funding, reports the Times. Despite the recession that began in 2007, people are still investing and seeing a positive outcome.
The most popular investments are Washington apple orchards, sugar plantations and Illinois corn fields. Some investments are even coming from outside of the country. Holdings from 2007 to 2009 saw a boost of 2.4% on 1.08 million acres. This is 5 percent of California’s farmland.
Though investing in a farm can be risky with weather conditions beyond control as well as commodity prices, overall people see a steady outcome with farmland.
Major investments generally come from a group of people looking to make a profit, but even as an individual farmland can be the best way to save for your future.
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For further information regarding this topic, or for information regarding loan products available, please contact Farm Plus Financial at 866-929-5585.