Investing in Farmland
We have heard a lot over the last year or so from the likes of Jim Rogers and Marc Faber concerning the value and profitability of investing in farmland.
Depending on what part of the world you live in, it has been one of the most lucrative investments over the last decade, and only trails gold when taking into consideration safety as part of your investment decisions.
In England, for example, prices have surged by 164 percent in the last decade for farmland prices, and this includes bubbles and a terrible recession. Of course those two events are part of what has driven investors to the rural land to begin with; that and concerns over potential catastrophic failures which could lead to he breakdown of society, which isn't considered that far fetched anymore by a growing number of people and investors.
And while farmland is a good haven, it is becoming far more than that as we enter into what I call a "peak" world, where many raw materials are reaching the point where they can't be extracted at the former low prices, and so it will cost more for them in the years ahead.
Even though food prices are down now, and may be for another year or two, they will start to rise again, and when they do farmland will be an extraordinary investment, as there is no more growing anywhere out there, and it will bring great returns in the years ahead as food demand skyrockets.
This is a great long-term opportunity for investors, with the combination of safety and great returns a hard to beat proposition.
While I see gold as a good investment for years into the future, I think over an even longer term, farmland will far outperform that and most other investments for a long time ahead.
Investing in Farmland
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