If you’re unsure where to invest your money, you need only look online for scores of potential ideas! Of course, you want to find ideas that will likely give you a good return on your investments. For many people, the traditional options are either company shares or bricks and mortar.
You might not think it, but one successful investment idea is farmland! Investors have been snapping up agricultural land like there’s no tomorrow, it would seem. Sure, the economy is somewhat volatile at the moment. But, one fact to note is that the value of agricultural land has risen through times of economic crisis!
Farmland? Why farmland?
So far, the only thing you’ve learned from this article is that the value of farmland is rising. You still don’t know what that is so, and even how you can make money from that phenomenon. Let me explain!
First of all, the world’s population is growing. To cope with demand, we need more farms producing fruit, vegetables, and livestock. Otherwise, we will all start going hungry! As the owner of some arable farmland, you can almost guarantee a profit on your investment. Why? Well, there is only so much farmland in the world that is useful for cultivating crops.
Some investors tend to buy such farmland and do nothing with it for a few years. It might sound like a weird idea, but hear me out! There will come a time where neighbouring landowners may wish to expand their farms. Your land can prove valuable to them, and so you can make a profit by selling or leasing it to them.
Of course, that isn’t the only way to make money from owning arable farmland. You could develop the land and make it pay for itself in a literal sense. Believe it or not, operating a farm isn’t as hard as you might expect!
The good thing about running a farm is that you don’t need to get your hands dirty. You can hire people to deal with the everyday tasks that a farm demands. All you need to do is manage the operation.
The cost of operating a farm isn’t that expensive. Even labour costs are quite low, especially if you hire seasonal workers. When it comes to machinery, used equipment is cheap to buy and can be made reliable.
For example, you can hire a local agricultural mechanic to give each tractor an overhaul. Using quality parts such as FAG bearings will also improve each machine’s longevity. And let’s not forget about periodic maintenance.
You can ensure your staff knows how to operate and clean the machinery at your farm. Funnily enough, that approach is cheaper than leasing and maintaining brand new items! Build up a portfolio of farms, and you’ll soon be enjoying a good return on your investment!
Another way you could make money from your investment is through organic farming. More people are making a move to organically-grown fruit and vegetables. Plus, there is a movement of people that will now only buy free-range products.
If you decide that you have enough, you can always sell the land or the business. Even just a year into farmland ownership will give you a significant profit on your investment.
So, should you consider buying some farmland? In a word, yes.