Investors’ best chance of
achieving long-term returns will come from investing in real assets that can
cash flow through all business cycles.
Not only is farmland a real asset that
cash flows, but it is in diminishing in supply around the world, and produces a
product with a relatively inelastic and increasing global demand. Even gold
cannot make that claim.
As towns and cities
expanded into rural areas, farm land became more valuable and desirable.
Sometimes
the price of a pig was enough to buy what we needed, but then it wasn’t. Farm
prices were always going down.
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In some cases in both the US
and Canada, those paying these prices are neighboring farmers while in others
it is people looking at farmland as an investment.
For farm land for sale in Mexico, global warming and the introduction of new short-season corn varieties
that yield well has allowed high-priced, higher-yielding corn production to
supplant the growing of wheat and other small grains.
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