In the past few years, personalities like Bill Gates, Harry Stines, Aliko Dangote have shown interest and even invested in farmlands.
Along with these, several millionaires own farmlands, because it is an investment opportunity that offers an appealing portfolio and diverse characteristics, along with good returns under current and future market scenarios.
The agricultural boom is currently on an exponential rise, especially with the COVID panic which forced people to switch to passive income alternatives like farming. And besides, a number of studies conducted across a wide range of markets have demonstrated that farmlands have a vast potential in terms of investment and estimated gains.
So why is investing in farmland so beneficial?
- High capital security:
There is no asset to own than one that increases in value over the long term and keeps pace with inflation.
Owning a farm provides substantial capital preservation for extended time periods. Additionally, if you can maintain your farmland well, it will be an entirely inexhaustible resource to gain productive results.
2. Less amount of risk:
Putting your money in farmland is a smart choice that investors make, and this is due to the fact that an investment in farmlands is backed up by a solid asset which is unlikely to depreciate, unlike other types of properties where their rate fluctuates.
In contrast to other mainstream options such as a commodity and precious metals, farmland provides a regular income to the investors, making it a useful replacement for lost-free risk income on cash deposits due to low-interest rates.
Although not necessarily the highest return in the real estate sector, this income is being earned on an asset that is unlikely to reduce in value.
- Farmland investments deliver total high-returns
When you own your farmland, you have several options for making high returns, of which the most common is the growing and selling of your own crops.
Farm returns have an average annual return of 11.5%. And it is predicted that by 2050, there would be a demand for farmers to produce up to 98% more food by 2050. Therefore, the best time to maximize this opportunity is now.
- Simple and transparent:
The last but definitely not the least benefit of owning a farm is because it is a farm. Direct investment in farmlands is a very simple and transparent process, which makes it very easy for investors to understand and venture into.
Through the above-listed points, we hope we have been able to give you a brief idea of the technical and financial benefits of investing in a farmland project. However, if you find this interesting and would like to take a deep dive into joining the high-class to start owning a part of the earth, then you are in the right place.
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