The last few years have brought to light that investors should not sleep on agriculture and its ability to profit. Farmland all across the United States has seen an increase in purchases, and that trend will continue in 2022 as more farms are put up for sale, inflation concern rises and alternative assets are in high demand.
Across the country and even the globe, there is continued population growth while reducing the amount of farmland. For so many decades, historic farmland has been sold to developers for suburban development and construction building, without regard for the damage it has done to the local agricultural economy. This trend continues today, but investors are looking to keep these farms in their current state instead of flipping them into subdivisions. These farms are needed and substantial for economic purposes and can be profitable throughout the fiscal year. This means that an asset of this nature will become more valuable as it becomes rarer in communities everywhere.
One of the biggest concerns manufacturers have faced over the last year is inflation in costs and supplies in all industries. As a farmer, supplies look much different, and growing crops does not have the same impact as investing in manufacturing companies. The attraction to farmland investment is safer for investors, and they can reasonably expect a more significant return on their investment in agriculture.
Historical data indicates that slow and steady wins the race, showing that the low prices that investors took advantage of in this farmland were worth the investment over time. Continued growth has continued to grow despite the other hits that the economy has taken over time.
One of the most incredible things about farmland to investors is the tax deductions for owning the property. Annual property taxes on farmland throughout the country are already reduced compared to residential or commercial property. Also, it can be a deduction on your taxes at the end of the year, even if a profit was not made from the farm. For those who have invested in farmland, this benefit alone can be enough to invest in more farmland in 2022.
Farmland itself is considered quite a stable investment and investors know exactly what they are getting at the investment time. Income from farmland can be generated through multiple means such as renting to local farmers, profits from producing crops or developing a crop, improving the property value and realizing appreciation in the future.
As savvy investors are looking for quality assets that offer stability and the potential for substantial returns, the attention on farmland is not slowing down. Getting back to the basics of land wealth and investing in acreage has enough advantages that make now the right time to move in on farmland investments. If you want to add a new asset to your portfolio, consider the benefits of farmland and how it will grow in 2022. Whether you're ready to become the sole owner of quality farmland, or are more interested in taking fractional ownership in a piece of land, FarmFundr offers options for you. Create a complimentary account and explore these options now.