FNC News

If you grew up on a farm or own farmland, you’ve likely heard Mark Twain’s expression, “Buy land; they’re not making anymore,” or Louis Glickman’s quote, “The best investment on earth is the earth.” Since the Homestead Act of 1862, land ownership and the freedom it brings have always been associated with the American dream, and this still holds true today.  

As a Sales Manager for Farmers National Company, I often hear investors and landowners refer to farmland as dirt. While it’s true that a landowner owns dirt, land is much more than that. They own an appreciating asset that provides freedom— freedom to hunt with friends on weekends, build a home and raise a family outside the city, own livestock, and even start farming themselves. I can go on and on about the benefits of landownership, but here are some of the biggest reasons to own land:

• Limited Resource: As Mark Twain said, “They aren’t making anymore.” Farmland is a limited resource, and its shrinking supply makes it an appealing asset. While the footprint of crop production has grown over the past decade, farmland continues to decrease annually due to urbanization. According to the USDA’s 2022 census, agricultural land has decreased by more than 15 million acres since 2017, with an expected loss of 1.9 million acres annually.

   

• Freedom of Choice: Owning land gives you the freedom to decide its use. Whether you rent it out to farm, develop it for hunting, plant trees for forestry, or pursue other developments, the choice is yours. While property taxes and local laws must be followed, the opportunities with land ownership are endless.

                                                                                                                 

• Long-Term Increase in Value: A recent study by the University of Illinois showed that farmland across 32 states saw an average return of 10.5% from 1970 to 2023. In comparison, the Dow saw a return of 7.1%, and the NASDAQ 10.5%. As you can see, farmland offers a steady rate of return and is a great way to diversify your portfolio. 

   

• Reduced Maintenance and Stress: Investing in storage units, rental houses, and apartments can yield solid returns, but often comes with high maintenance costs and stress. With farmland, you’ll still need to pay property taxes and liability insurance, but you won’t have to worry about repairs like replacing a roof or fixing an A/C unit. Landowners may choose to add irrigation or drain tile to their farms to increase value and return on investment, but these expenses are typically planned and budgeted for.

While the American dream may no longer be 40 acres and a mule, the desire to own farmland remains as strong today as it was in 1862. At Farmers National Company, we have a talented team of farm managers, appraisers, and sales associates ready to assist with all your farmland needs. Whether you’re looking to expand your land portfolio, buy your first piece of farmland, or sell your land, you’re in good hands with Farmers National Company.