by Chris Casey, Dollar Vigilante:
US farmland values have been growing. Since 2009, the nationwide per-acre value has risen almost 40% while prime farmland properties have sold for record prices. This appreciation derives from legitimate suppl- and-demand trends in agricultural commodities. These developments include: an increasing world population, continued limitations on arable land, fresh-water constraints, declining growth in crop yields, and increasing caloric consumption in developing countries. These trends are powerful, likely to continue, and carry a worldwide impact. But there is a far more important reason to invest in farmland today – one that is not reflected in current values.
Farmland is an inflation hedge. Allocating part of one’s investment portfolio to farmland (particularly farmland in nations which will experience relatively high inflation) will not only protect investors, but will allow them to profit – perhaps immensely.
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