Owning Farmland

An investment in farmland is one of the most simple, straightforward and easiest to understand investments that you can make.  You do not have to be a farmer to benefit from farmland ownership; the market for productive farmland to lease is very competitive.  The owner is paid an annual rent check before the growing season begins.  In the unlikely event that the rent is not paid, it is easy for the owner to find another local farmer for that year.  The owner is responsible for paying real estate taxes and carrying an inexpensive liability insurance policy on the land.  The local farmer who rents the land is responsible for maintaining the soil fertility and complying with government conservation programs.

Today’s farmer is a business man.  He (or she) uses modern technologies including GPS and precision application to coax as much production from the land as he can while keeping costs down, managing his risks and conserving the land.  Crop insurance, forward pricing of production and long term leases all help him mitigate risks while supplying the world with food, fiber and fuel.  Most crop farms are family businesses and multiple generations assist in the day to day operations.  The majority of farmers wish to develop a relationship with their landlords to ensure they will be able to farm the land for years, or even generations to come.