"They aren't making any more land. It's a simple rule of supply and demand. Property prices continue to increase as more people become aware of the value of land as an investment"
"Ninety percent of all millionaires become so through owning real estate."
"The major fortunes in America have been made in land."
John D. Rockefeller
"I would give a thousand furlongs of sea for an acre of barren ground."
"The small landholders are the most precious part of a state."
"A man complained that [on] his way home to dinner he had every day to pass through that long field of his neighbor's. I advised him to buy it, and it would never seem long again."
Ralph Waldo Emerson
"The best investment on earth is earth." -
"Land is the only thing in the world that amounts to anything, for 'Tis the only thing in this world that lasts, 'Tis the only thing worth working for, worth fighting for worth dying for."
You might ask yourself "why would I want to invest in farm ground"? With the extreme volatility of the stock market and the current economic state of commodities, farm ground is the safest investment. We’ve all heard the commercial for investing in gold where they say, “gold has never been worth zero”; well, neither has land. Farm ground is a great long-term investment because it never stays down in value over an extended period of time. If you choose to sell it, you will almost certainly make a profit. If you decide you like being a landowner, it will give you guaranteed income for the rest of your life. When its time to leave this Earth, you may choose to hand down your property to the next generation and part of you will be here forever.
If you choose to purchase ground, you would need to decide what type of rental agreement to arrange with the farmer. There are three types of rent: cash rent, sharecropping, and one that combines the two. Cash rent is when the farmer rents the ground from the landowner for a certain price every year for the length of the contract. The benefit to this system is the landowner always knows the amount of money they will receive each year. It also takes all the risk from the landowner. It doesn’t matter if it’s a good year for crops or a bad one, the landowner receives the same amount of rent and the farmer takes all the risk. The down side to this is in a real good year for crops the land owner won’t make quite as much as he would with the share cropping system. The share crop system is when the farmer and the landowner each receive a percentage of the profit from the crops for the year. This system has the potential to make you more money in a good year. The down side is you share the risk with the farmer and you would make less money in a bad year. There is also an option that combines the two. In this case there is base cash rented price for a certain bushel per acre. If the crop goes over the bushel per acre mark that was agreed to by the farmer and landowner, the landowner gets a bonus. This gives you the safety of the cash rent for bad years and the potential up side of the share cropping in a good year.
If you are considering investing in farm ground and/or want to learn more about it, we would like to have the opportunity to answer your questions. We can help you find available farm ground; learn its value, and how to purchase it. In closing, I would like to thank you for taking the time to read this and I can guarantee you that you won't be able to find anyone that can out work us.If you have any questions at all feel free to call us, fax us, or email us.