I saw an interesting you tube video saying that due to what is happening in the country that farmland was going to become very valuable. The reasoning was that whoever controlled the means of production , especially of food,dairy, meat, etc would benefit greatly.

To back up the logic, the presenter noted that Bill Gates and many other very rich people were buying as much farmland as possible with BG now being the country's largest farmland owner.

He said that when the big players and the very rich start buying into something you can pretty well bet that there's a reason for it, even if you don't know that reason and that when you see this, pay attention.

An interesting presentation, to be sure.

It seems to me that with the govt telling us we have no right to collect rent because of "whatever reason" and added to that the growing national debt, the housing problems, and more that having some farmland, orchards, pastureland , especially with water sources might be a good idea.

I also heard/read that China was buying up as much farmland as possible in this country as well as the meat packing companies (Smithfield - in the news recently) and more.

If it is true that many people are moving from the big cities to the country for whatever reasons, it seems a good idea for us landlords to get some farms in our portfolios, especially ones with water supplies (have you read about farms in Calif and elsewhere getting their irrigation water cut back by the govt?)

Don't seeing this being a big issue. The smart farmers are/will sell marginal land, or worse; land subject to federal, state, and maybe local land-use restrictions wich the owner is responsible for. What really counts is that the land grows crops. If the Chi-coms or Mr. Gates wishes to build something on it, a plethora of ad infinitum ad nauseam zoning and building issues need to be resolved beforehand.

I've read and heard the time to buy farmland was 15-25 years ago.... not sure if it's still a good opportunity now.... It would seem more durable and less volatile than residential RE.

Sorry to the OP, but Rick, can you elaborate on the Japanese are buying everything and deals that were flops? I was younger in the 80s and remember them buying up a lot of homes in Hawaii. That was a smash hit for them... what were their misses?

The Chinese are buying farms all over the world and what the farms produce gets shipped to China.

Here in California, someone buys land and before hand get's the okay from the local City, County, State and Federal agencies. They buy the land and then Federal Agents arrest the buyer because the Army Core of Engineer's assert the land contains some endangered special of plant, bugs or has a natural stream of water.

When the person purchased the land, there was cast-off, junk, old tires and stuff abandoned or dumped on the property. The new buyer cleaned it up and now is under arrest for disturbing the "natural habitat of some weed, bug, plant or 3 foot stream of water coming out of a hole and getting re-absorbed into the soil.

Rich people buy rangeland. The silicone Valley startup culture has appropriated the farm model and with venture capital is buying up and leasing farmland in a community and then the local farmer who used to rent from their neighbor now had to rent from them at a higher price. Kind of what is happening with hedge funds cornering the rental market.

6x6,

You ask what is there to keep the govt from creating the same issues with farm land owners?

My opinion: There is NOTHING to keep them from this. Ask the Bundy's and some others.

If they decide to take your land, your house or your freedom, they will find some reason or create some law to do it.

Just a word of caution here:

I know very little about farmland.

What I can tell you though with regard to market pricing is that on many occasions, when you finally become aware that the large investors have been purchasing whatever, often times you have missed the boat. Now it is true that this concept usually is relevant to certain financial markets which are regularly traded on various exchanges. "Buy the rumor, sell the fact" is often a saying worth paying much attention to.

It is not so long ago that many on this board will remember the technology bubble from about 20+ years ago and how many years it took for many companies to recover from that, that is for those that did recover.

In order for farmland to be profitable and useful, it's important to know how to farm. That was one of the problems that Venezuela ran into... they confiscated and redistributed over 5M acres of farmland, but the recipients of the land (either the state or the poor) were terrible farmers. Either they perceived all-land to be able to raise all-the-things, and tried putting it to a use which it was unsuited for (ie, trying to grow corn in land that's best for sugarcane, or trying to grow sorghum in land that's best for cattle), or they couldn't do anything with the land they were given, without also being given irrigation systems, agricultural machinery, and other expensive infrastructure they couldn't afford... and that the previous landowners had accumulated over decades or generations.

You make money on farmland just like on houses...you make it when you buy at or below market.

Easier said than done.

I'm bullish on farmland but struggle to find "bargains".

I bought my 70 acre farm 15 years ago at auction. I have it in a Federal Forestry Reserve program and it is assessed at $1 per acre and that saves on property taxes.

The farm went up for auction in 7 acre parcels in 2003. My hubby wanted to buy a parcel as an investment, but I did not. He called me 8 times trying to get me to come bid on "his" parcel, but I was weeding my garden. Finally he bugged me enough that I stormed over to the auction dressed in mud from the garden. I saw only half the parcels gone, so I bid on the entire 70 acres plus a cell tower. Hubby fell out of his chair in shock, got to his hands and knees and yelled "What are you DOING woman?"

"I am buying the farm!"