With the demand for food growing all over the world, there is no better time than now to own a farm and get into the farming industry. For those of you that need a little convincing, here are some reasons you may want to invest in farmland:
The demand for food is increasing.
As most of us already know, population growth leads to a growing demand in food. This is still very much so true for places all over the world. In the United States, the state of Montana is expected to increase by as much as 14% by 2043.
Farmland is like gold in today’s market
Although high in demand, there is a limited amount of farmland for sale. As a result, the prices for such properties has been increasing. On a global level, it is increasing at a rate of 2% higher than inflation.
Farmland allows for portfolio diversification
For those who are looking to maintain their wealth, developed markets such as the agricultural industry are a smart choice to invest in. Although rates tend to be higher, countries like the U.S., Western Europe, Canada, Australia and New Zealand are all cashing in on the industry.
Just as investors are looking to preserve their wealth, the government is looking to preserve the natural resources many of the properties contain. Conservation easements or limitations are set on properties in order to protect the natural resources within them. This is to keep the land’s best interest in mind.
Farmland has tax breaks
In countries like the U.S., U.K., and Canada, there are benefits to earning income off farmland investments. These benefits include an inheritance tax (IHT) if you live on the land for at least two years. There is also a business relief for 5 years in the case that the farmland makes a loss.
Now that you know the benefits of owning farmland, you are more inclined to make an educated decision on whether or not to invest in farmland for sale. One thing is for sure, you’ll love the view.
