Is agricultural land a good investment?

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The United States of America is always referred to as the “Land of Opportunities” and there are many who have proved it right, but there have been a handful of those who have fallen on bad times mainly due to the fact that they have not invested prudently. If you want to go ahead with farming, there are numerous options available to consider in the country. However, you should check and confirm whether purchasing land for agricultural purposes is a good investment that you can do or not.

Salient factors to remember as you buy agricultural land

It should be understood that there are good and also dicey investments hence selecting between the two would need careful consideration. Investing on agricultural land as a small time investor could be one area which could bring you negative results. Unless of course you invest in land, execute substantial development, in the form of roads plus add the various amenities and then sell. This would not be for small time investors who would want to bring a good return on their investments and that too very quickly.

Investing on agricultural land is nothing but pure speculation because the investors have to throw in their capital from wherever they would source it and purchase the land and then pray to the heavens above to ensure it appreciates during a period of time. Investing in land would not end with their prayers, there would be costs incurred in retaining the piece of land, which would be the relevant property taxes to the relevant local authorities, up keep of the piece of land in acceptable condition and also premium payments on insurance which would be generally mandatory in most states. The other major minus factor would be that the land you purchase would be miles away and if you are to commute there to see the status of your land, even if the visits are infrequent, still you would need to incur a cost. You may have to place the plusses and the minuses before you would put your money on a land.

Whilst you continue to dish out such payments it is very unlikely that the piece of land would appreciate substantially to ensure you reap a good return on investment. On the contrary if your capital remained in the secure place where it was in all probability it would be earning some form of interest and also accrue other benefits to you. During the same period that you would have owned and kept your land the capital in your fund would have appreciated but the value of the land would have remained static or improved marginally or even gone down in value substantially.

Real estate speculation

There was a boom in bare land with prices rising quite sharply especially in the State of California in the 1970’s but that has been short lived with prices in all the contiguous states of the United States not behaving with any excitement in the recent past. This ebb in land prices has effectively shut off most of the small investors who would have otherwise staked their claim in this form of investment. It is only big investors who would buy acreages of land and then bring substantial development into it and then make a sizeable return on their investment who would usually take the gamble.

Speculating on such large real estate developments would also depend on where they would select such lands. It would be naïve to invest on large acreages of land in the middle of nowhere and then expect to sell them even with homes on them. Hence the real estate demand for land is at a very low movement at the moment and there is no bright light to be seen at the end of the tunnel too.

In the future, we can see how the demand for agricultural land would further increase. That’s because people are slowly getting to know about the benefits that come along with their investments on agricultural land.

Agricultural land plays a major role behind real estate industry

An interesting survey conducted by William Larson, who was attached to the Bureau of Economic Analysis and presently a senior economist at the Federal Housing Finance Agency has estimated that the total value of all land in the contiguous United States is only $ 42 trillion. California accounted for 17% of that total in comparison with all the other 48 states, with New Jersey being the most valuable state in relation to its size estimated at $196,400 which was 16 times more that the average national value per acre which was placed at $12,275. This was for all lands including the developed, undeveloped and farm land, which was the three main categories, on which Larson’s survey was based on.   

Developed land which had housing, roads and other infrastructure was estimated at $106,000 per acre, undeveloped land came a far second at just $6,500 per acre and farm land a lone third at only $2,000 per acre. This should enlighten any small individual investor contemplating on agricultural land, that it would not be a very prudent idea to put any money on agricultural land. The other factor that you could take into consideration is that land has not substantially appreciated over the last couple of decades anywhere in the contiguous United States.

Real estate advice as you buy agricultural land

In fact, if you were to approach any real estate agent and inquire about investing in land their eyebrows would lift up and in all probability they sit you down and offer you other more attractive real estate investments of which there are many. There would be more questions than answers which you would need to find for yourself before you would dare to invest on agricultural land which would be a high risk How to get the most out of agricultural land you buy?as per the current trends prevailing anywhere around the United States.

Investments on agricultural land are basically speculative hence could be quite risky and as a small time investor that would not be a chance that anyone should take as there are many more lucrative forms of investment which could bring better returns. It is a foregone conclusion when dabbling with investments to ensure that your investment is well secured and the return on investment is worth the hassle, if not it would not be a prudent choice.

How to get the most out of agricultural land you buy?

Environmental pollution has become one of the major concerns in today’s world. This has created an ideal platform for the popularity of sustainable agriculture. In other words, the farmers are concerned about following a more sustainable approach in order to get the maximum yield while minimizing environmental pollution.

Farmers who minimize the use of chemical fertilizers and pesticides will be able to protect future productivity while saving a considerable amount of money. In the meantime, they will have to pay attention towards disease control, pest control, weed control and erosion control while ensuring a high quality soil.

Soil enrichment can be considered as one of the best methods available for the farmers to involve fertilizers when they are growing crops. In fact, soil is the most precious element when it comes to agricultural ecosystems. However, most of the insects, spiders and birds have become natural predators of the agricultural pests. Therefore, farmers should think of using organic fertilizer instead of chemical pesticides to make sure that pest predators such as bats and birds don’t die. This can contribute a lot towards the ecosystem as well.

Organic fertilizer is in a position to hold nutrients and water in soil. If you are growing crops in sandy soils, you will find it as a hard task to retain water and nutrients. In such instances, you can think of using organic fertilizers. On the other hand, organic fertilizer is in a position to enhance the workability of soil. As a result, the plant roots would get more air, which can contribute towards their development.

From various studies, it has been identified that the organic fertilizer releases nutrients little by little to the soil. This can create a tremendous impact on the effectiveness. In other words, the plants will be exposed to a steady steam on nutrients. The best thing about these nutrients is that they are natural. They don’t have the ability to burn grass or plans like chemical fertilizers. Moreover, organic fertilizer is not in a position to pollute groundwater. Chemical fertilizers release a variety of chemicals into the soil, which flows into the underground water streams.  As a result, both humans and animals will be exposed to these chemicals in the long run. It can give life to a variety of health issues and create an impact on the balance of ecosystem as well.

Chemical fertilizers can be purchased from the market at a lower price. You don’t need to use them in large quantities as well. However, you shouldn’t compromise the future of everyone to experience these benefits. You will have to go through some hassle when applying organic fertilizer. In other words, you will have to spend a lot of time in order to apply them by hand. The effort and time you spend would be an excellent investment done towards the future of every living being on this planet. Therefore, it is the high time for you to think of using organic fertilizers.

United States Farm Bill passed in the year 2018

The future of hemp industry in United States looks promising as the President Donald Trump signed 2018 Farm Bill. This officially legalized hemp within the country. This can create a tremendous impact on both CBD and hemp industries that exist within the country. In fact, it would give life to a wide range of opportunities and it would receive an unprecedented growth during 2019. Therefore, it is important to deep dive and take a look at what specific changes to the hemp industry were introduced by US Farm Bill 2018.

The legalization of hemp around the country

In 2014, President Obama signed a bill, which gave authorization to the cultivation of hemp in some of the states. As a result, around 40 states across the country went ahead and created hemp pilot programs, falling under this policy. These programs were specifically designed to explore the opportunities that are linked with the hemp industry that exists in United States. The US Farm Bill 2018 took it to the next level.

How can the US Farm Bill 2018 create an impact on hemp and CBD industries?

The US Farm Bill 2018 is in a position to create a tremendous impact on the CBD and Hemp industries that exist in United States. Since CBD and Hemp are now accepted by the federal government, the mainstream companies that exist in the country would venture into the hemp market. They will be able to use their expertise and latest available technologies to ensure the overall growth of the market as well.

One of the most important aspects that you can find in the hemp market is the production of goods that feature CBD, which is the most prominent natural cannabinoid. As per the financial predictions, this CBD segment would grow up to $1 billion by 2019. From then onwards, it will experience an exponential growth and I will reach $22 billion by 2022.

Final words

There are lots of agricultural land that you can find in the United States. Investing your money to purchase agricultural land in the country would be a great decision that you can take. It can unlock numerous great opportunities and help you to earn profitable returns along with time. However, you need to check and confirm the best agricultural land that is available for purchase in the country, so that you can continue to experience the benefits that come along with agricultural land investments. This will help you to make your investment grow along with time.

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About Land Friday

The Land Friday, is a marketing and real estate listing service that specializes in promoting land for sale cheap, cheap vacant land, cheap residetial land, cheap farms for sale, cheap recreational properties for sale, waterfront land and waterfront properties, cheap hunting land for sale and all other cheap land offers. The Land Friday is not acting as a real estate brokerage.

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