From CNBC to Forbes, top media outlets and financial analyst alike have recognized the growth potential and wealth building opportunities of investing in farmland. Even renowned investor and co-founder of the Quantum Fund, Jim Rogers, had strong words about the topic of farm land acquisition stating, “If you want to get rich you should be buying farmland. It’s the farmers, the producers, who are going to be in the captain’s seat when the prices go through the roof.”
Our experts in farm land for sale in Florida have joined the conversation to bring you three tangible reasons farm land is an excellent wealth generating investment opportunity.
1. Population Growth
According to the Food and Agricultural Organization of the United Nations (FAO), it is estimated that population will increase to 9 billion by the year 2050. This rise in the global populous means two major things for farmers and their crops. One, there will be a greater rate of consumption driving up the price of commodities. Secondly, there will be less land for farming, which will lead to an upward trend in land prices throughout the next four decades. The FAO has also concluded that within this same time frame, available farm land will decrease from the current .218 percent per person to .181 percent per person.
2. Anticipated Agricultural Boom
The expected rise in population will ultimately lead to a major agricultural boom for farmers, and this proof is already recognizable in the current market. In the analysis conducted by the FAO, they found an almost 100% upward trend in agricultural prices since 2003. Another large factor behind the increase in global agricultural prices and exports from the US is due to a rise in food demand, resulting from the aforementioned population growth and greater wealth in developing nations.
Another contributor to the current and anticipated agricultural boom is the growing demand for biofuels, which accounts for 23% of the United States corn exports. With output potential upwards of 8 billion gallons of ethanol per year, farm land for sale in Florida has the potential to produce more biofuels than any other state according to the Florida Energy Systems Consortium.
3. Portfolio Diversification
Purchasing Florida farm land for sale is an opportunity to diversify your investment portfolio with a hard asset that offers unique short and long term opportunities. Farm land prices and the resources derived from it will continue to flourish in the global economy as the demand for protein, bio-fuels, and an array of other agricultural products not only thrives, but expands as population increases and available farm land decreases. When it comes to farm land, all data points to big profits as revenue streams evolve and adapt to greater demand in the market.
The business of agriculture has been a way of life for over 10,000 years, and as each person must eat to survive, farm land for sale in Florida shows no inclination of reversing it’s place as an attractive opportunity for investors. All indications from pundits and global land experts lead to the same conclusion, the profitability from this revenue source will only increase in the future.