What every American hopes for is one day to be able to retire in comfort without the need to worry about the money funding it running out. Typically, most retirement plans include some form of investment, usually in the stock market. 

Recently, the onset of inflation has turned stock investments into a volatile market. But a time-long option has once again become a popular investment among those wishing to keep and increase their wealth while other markets are dwindling: farmland. 

Yes, that’s right the new trend is for the elite to purchase farmland as a more stable investment, with better long-term returns. Land has traditionally been a more stable investment, albeit usually with a lower—but steady—return. 

During times of inflation, however, the returns can be greater than those of other market options. Not only is the asset appreciating, but farmland can also bring income in through leasing opportunities or crop sales. 

Remember that saying, “Once in your life you may need a doctor, a lawyer, a policeman, and a preacher, but every day, three times a day, you need a farmer.”

Everyone has to eat, so as more and more land is developed, farmland values will only continue to increase in value over time. 

The variable in that equation will be just how fast we lose “ground” for farming operations, depending on how quickly those values rise.

But this farmer’s take is to look at what this does for the farmers. On one hand, those farmers who already have land would benefit from growth in their largest capital asset, so that one day when they do decide to retire (if at all) they can use that value to fund their retirement. 

On the other hand, those new and beginning farmers, who are looking to purchase land to start farming, come in at a disadvantage. The value of farmland will increase, while the income they might be getting is reduced—inflation makes it more difficult to afford land. 

In addition, prime farmland could be much more difficult to find as well, not only because the farmland-turnover rate is much lower than in regular real estate, but also because other parties are now vying for that land. This could be potentially problematic in replenishing productive farmland if investors purchase the land and leave it fallow. 

If, however, the investors purchase the land and work with local farmers or a manager to make the land productive, that benefits the entire community by increasing a food source. 

But what would greatly help in making sure that productive farmland doesn’t get purchased for development in current or future generations is to put these pieces into Ag Land Preservation or a similar program.

Remember my earlier note that everyone needs to eat, and usually multiple times a day. We as a community need to remind ourselves of this when choosing our investments, as it will not only impact our generation, but the opportunity for future generations to access fresh foods.