Yesterday we talked about farmland values and how they’re on the rise in the Midwest. Today, we’re going to discuss why farmland is such a safe investment.
Hinnerk Wolters, a farm real estate broker with Hageman Realty says, “I think one of the keys with farmland is its stability. It will always be there. It’s a multi-generational investment and it’s a great hedge against inflation. As we’ve seen at times, farmland is a productive asset and it goes with inflation.”
Farm real estate broker Sara Hageman Schenk says farmland is a safe investment because of appreciation.
“We also look at farmland as an investment. As an investment, it’s very comparable to bonds, but farmland is an investment that appreciates 4%-5% annually and yet has a solid return every year. So, the bond doesn’t appreciate like the farm.”
Wolters adds, “I think it was Mark Twain that said, ‘they quite making farmland a while ago,’ so the supply is limited. In addition to that appreciation return, you get a consistent year-over-year cash return in the form of cash rents.”
Hageman Realty serves farmers and investors in Indiana, Illinois, Wisconsin, and Texas. They are the farmland specialists in the Midwest. If you’re looking to invest in farmland or want to know what your farmland is worth, contact Hinnerk or Sara by visiting hagemanrealty.com.