When it comes to the 2.3 billion acres of land in America, trying to choose the perfect plot to buy can be a challenge.
But if you haven’t thought about investing specifically in agricultural land, you should.
Did you know that 54% of all land in this country is used to create ag-products? These include meat, produce, textiles and more.
This means that ag-land is incredibly valuable both at a national and local level. In fact, profits produced on agricultural land account for $985 billion of America’s GDP.
And now, demand for agricultural land is growing—and its value is set to soar as a result.
Here Is Why You Should Think of Investing in Agricultural Land
- There will never be more agricultural land than there is now. As demand grows, supply will remain scarce.
- Consumer confidence has jumped from just 37.4 in January 2012 to 134.1 as of May 2019. This is a direct outgrowth of a variety of economic improvements affecting the labor market, commodities prices, retail spending, and more.
- Interest rates have bottomed out for the time being, while home availability is on the decline. Meanwhile, there is intense demand for the construction of new housing, especially on rural land. Cities need to expand to accommodate under-housed populations.
- The following statistics show that agricultural land values are stable or increasing:
- Pasture value: Up $20 per acre since 2016.
- Cropland value: Steady at an average of $4,090 per acre.
- Real estate value: Up $70 per acre since 2016.
- There are strong products right now in agriculture, such as:
- Other livestock
- It costs less to feed livestock and power agricultural equipment than it did in the past.
- A lot of rural land has value from a recreational standpoint. The travel industry is booming, and developers want to take advantage of that.
Buy Land Today, Reap the Profits Tomorrow
If you are ready to take the leap and invest in agricultural land in the US, LandHub makes it easy. You can put in the state where you are thinking of buying as well as the minimum and maximum price you are willing to pay along with the acreage. You can then view results which are targeted to your investment needs. See a prime opportunity? Act fast, because hot rural properties don’t stay on the market for long.