Farmland a good invesment choice?
farmland prices skyrocketed 50% over the past three years, to an average of close to $2,200 an acre through August, according to the U.S. Department of Agriculture.
Mike Duffy, an economics professor at Iowa State University, calculates that the average year-end farm price in the state will be a record $3,908 an acre — $508 higher than the USDA’s August estimate. This phenomon isnt confined to the Midwest. In some Eastern states, where residential development has squeezed farmland supply, prices have doubled over the past five years. (The costliest U.S. farms are in Rhode Island, averaging $12,500 an acre.) And in the West, states like Montana and Wyoming have seen prices of both farm- and pastureland soar.
![[giant map]](http://s.wsj.net/public/resources/images/BA-AL176D_land__20071228233418.gif)
My thoughts on this are that this kind of growth in farmland and crop-land may not be a bad indication of alternative investment in the real estate market that may make you money. Farm land could be the investment which provides inbuilt income growth that comes with farming activity. In addition, land is not something that can be made easily and holding on to a good piece of land can be a good long term investment growth plan. Just some food for thought.
Your friend,
