AcreTrader Blog

The average annual return of agricultural farmland for the last 25 years has been 11% to 12% according to the NCREIF index. This has been with relatively low volatility and consistently positive returns. We calculate the internal rate of return of farmland using yield and annual value appreciation.

Income from cash leases and rising land prices are just two of the reasons to consider investing in farmland as a long term investment. But if farmland is such a great asset, why would someone ever sell it? Let us look at the reasons that lead people to sell farmland when the time is right for them.

There are no guarantees in life, especially when it comes to investing. Recent surges in market volatility for stocks and bonds serves as a fresh reminder that asset prices don’t always go up. Can farmland save us?