June 2, 2014
Read Full Article
[The following is by Chris Casey, TDV Investment Analyst Contributor]
US farmland values have been growing. Since 2009, the nationwide per-acre value has risen almost 40% while prime farmland properties have sold for record prices. This appreciation derives from legitimate suppl- and-demand trends in agricultural commodities. These developments include: an increasing world population, continued limitations on arable land, fresh-water constraints, declining growth in crop yields, and increasing caloric consumption in developing countries. These trends are powerful, likely to continue, and carry a worldwide impact. But there is a far more important reason to invest in farmland today – one that is not reflected in current values.