Why is Buying a Farm Property the Perfect Investment for You?

By: Corey Tyner 


In today’s world there is a growing sentiment that looks at the American farmer as a pastime. However, even though times have changed and farming is not what it once was, various intelligent and driven investors have realized investing in a farm property is the perfect way for them to maximize their return on investment. These investors have realized that owing a farm property also coincides with several benefits that include lower taxes, government assistance, and overall freedom. Below the considerations you should take before purchasing a farm property and the benefits of buying a farm property are both discussed in further detail. Subsequently, the best time for you to purchase a farm property is also explored and discussed.


Considerations Before Buying A Farm

Before purchasing a farm property, you should spend a little time exploring whether or not the purchase is the right investment for you. In particular, you should take a look at your budget, the price of the farm, and figure out how you would be able to purchase the farm. Most experts recommended that land be purchased with cash if that is an option. When farm properties are financed they are purchased through the use of a land loan, which unlike a home mortgage, normally needs to be paid back in full in about 3-5 years. In addition to the quick timeline associated with a land loan, a farmland investment will also require you to be able to maintain the land and operate the farm to maximize your return on investment. To properly run a farm and manage the property you may need to seek out training or additional hands who are experienced at running a farm.  


Benefits of Buying a Farm

When land buyers own a tract of farmland there are several options for how they can make a profit. The most common use of farmland is to produce livestock or crops that can be sold for funds. The second most common way farmland owners produce funds is to lease their land to other farmers who are looking for a plot of land to grow their own crops or rear their livestock. Leasing out your farmland is a great way to earn a profit and minimize the amount of work necessary to do so.


In addition to having multiple avenues to turn a profit, farmland also is normally exempt from several taxes. Government assistance in the form of grants for producing livestock or managing the land a certain way may also be available for your farm property. 


When is the Best Time to Buy a Farm?

The best time to buy a farm is obviously when you can afford it. However, the rising demand for food production across the nation is increasing the prices farmers can charge for their crops. Therefore, farmland is currently experiencing a consistent rise in investment potential.


 According to property experts across the nation, there are more than 911 million acres of farmland in the United States, and now is the perfect time for you to own at least a few of these acres. Farmland is a hot investment that is seeing incredible surges in appreciation. At around two percent, Marketwire estimates that farmland is appreciating at the highest rates it has seen since the 1950’s. 


Purchasing Your Farmland

In addition to the benefits of purchasing a plot of farmland and the potential return on farm or land investment you could achieve, purchasing your very own farm can be an exciting endeavor because of the freedom it allows. If your farm is not restricted by any zoning or deed elements then there isn't much you can’t do with the land. If you are currently looking at purchasing a plot of farmland you should first prepare yourself by considering your budget and how you will finance the property. Good luck finding your farm!