Farmland Acquisition & Development
It's not overly complicated...
Less of a supply of farmland along with increased demand every single day. What wonderful structural tailwinds for an investment opportunity that can be for long-term generational wealth if that too is a goal. Independent studies at nauseam document the forever dwindling supply of farmland (one study says we are losing 3 acres every minute*) along with increased daily global demand for food and fiber.
According to Iowa State University’s Ag Department, even the poorest county in Iowa has seen average farmland rent per acre go from $50/acre to $200/acre in less than two generations. In less than one generation, average rent per acre for hunting leases has gone from $0/acre (used to just ask and usually got permission) to $30/acre…even as high as $50/acre depending upon reputation, accommodations, etc.
Below are six primary factors to consider when acquiring farmland and/or areas to focus on improving once owning the land. Good stewardship of this precious resource can increase the income, the value and the enjoyment of the land. In the end, the Big Guy upstairs owns it all anyway; our role is to be good stewards of the land during the time we are just passing through.
The Six Factors
The Farmer
It all starts with a good farmer. I’ve got a great one. Please click the button below; it will be two minutes very well spent:
Listen to "So God Made a Farmer"
Soil Conservation & Preservation
Tiling and terracing can be critical to combat soil erosion.
Natural Water
Rivers, creeks, ponds (man-made if necessary)…fresh water access is becoming more critical all the time.
Wildlife Conservation
Providing a sanctuary on your farm for ALL wildlife to thrive undisturbed. Actively practicing QDMA (Quality Deer Management Association) principles along with timber, fresh water, food plots, orchards, deer herd active management, predator control, etc.
Got Black Walnut?
Opportunistic timber harvesting for both long-term land improvement and investment returns.
Conservation Reserve Program
CRP government programs to both enhance the long-term health of the land and the investment returns for the owner.