A new report from international real estate advisor, Savillis, shows that over the last 15 years, the U.S. farmland market outperformed other real estate sectors with an average total return of 13 percent.
While the residential and commercial property market suffered greatly during the economic downturn, the farmland market has been largely unaffected. And while the farmland sector is by no means immune to the challenges faced by the real estate market as a whole, it’s been able to weather the storms much better than other sectors.
Just this last year, farmland returned 20.9 percent in combined appreciation and income, and timberland returned 9.8 percent, according to the National Council of Real Estate Investment Fiduciaries in Chicago. That kind of return continues to pull in new investment groups and individuals looking to expand their investment portfolio and obtain steady, profitable investments.
As one Wall Street Journal article put it:
The Savillis report confirms that investor interest in farmland is due, in large part, to the farmland market’s opportunity for strong income yield over the long term.
Many investors may find it interesting to note how much arable land the U.S. has within its borders. In fact, some may be unaware that there is actually more arable land in the U.S. than any other nation in the world.
According to Property Wire:
That abundance of farmland presents a unique opportunity to U.S. investors, especially since many states have firm laws and regulations that keep foreign investors out of U.S. farmland investments. In fact, direct overseas investment in U.S. farmland accounted for only 1.15 percent, with most of that land concentrated in Maine.
In Arkansas, farmland investment interest is strengthened by our great soil quality, water supply, and lower cost per acre. These additional benefits mix together to create strong opportunities for investors of any size and experience.
For more information about the long-term benefits of farmland investing and how you can invest in farmland in Arkansas, contact our team at Lile Real Estate.