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November 5, 2018
Most of the attention in farmland investing goes to two main production areas. One is the Grainbelt defined as the middle of the country where most of the commodity crops are raised. This area stretches mainly from Ohio to Colorado and North Dakota to Texas. The other main area is the West Coast where much of the permanent and vegetable crop production takes place from Washington to California and Arizona. The high value crops grown in this region require increased levels of management and costs when compared to traditional grain production. Therefore, investing in each of the two main production areas require a different analysis.
For those wanting to invest in commodity crop farmland, there are options outside the Grainbelt that may have a suitable return for an investor. Some investors want to purchase land near them and others look for diversification in crops and regions to spread their risk. One of the areas not often thought about for farmland investing is the state of New York. In addition to orchards and dairy operations, regions of the state have productive cropland for grain production. There is a wide range of pricing based on the productivity potential of the soils and percentage of tillable, but land prices can be compared along with rents and costs. Portions of the Southeastern US from North Carolina to Georgia have productive cropland that also may have interest for investors.
As with any investment, a sound farmland investment should rely on good information and reliable recommendations. Farmers National Company has professional land agents in New York and the Southeast who can assist land buyers in finding a suitable farm to purchase or to market and sell a farm in those regions of the country. Besides these particular regions, there are other areas with good farmland that may be suitable for investing.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|