Owning farmland has been a successful strategy for thousands of years, providing real income in normal times, windfall profits during building booms, and the security of food and shelter in bad times.
As an investment, farmland has historically delivered attractive, diversified, secure, inflation-hedged returns with both current cash flow and long term capital appreciation.
Farm Rent Income
About 40% of all farmland in the U.S. is rented by farmers. Rents typically reflect the income-earning capacity of the land, generally averaging 30% to 50% of the gross crop value. Land bought today will average 3.55% ROI, though over time that would increase with crop values (inflation or value-add).