According to the latest data from the US Department of Agriculture (USDA), this country’s agricultural land currently has an average value of 4,100 USD/acre (equivalent to 4 hectares). )the highest level since 2019 and 2015.
In recent years, agricultural real estate investors in the US are gaining more and more profits thanks to increasing land values. Meanwhile, many other investors are looking to agricultural land as an alternative shelter to housing during the Covid-19 epidemic.
Farmers International Company specializes in land management and brokerage Agriculture in the US commented that the epidemic has made many people more interested in the food supply chain and its sustainability, thus motivating them to find ways to own agricultural real estate.
According to According to USDA data, about 39% of the total area of 911 million acres of agricultural land in the US is being leased.
Many companies and investors are participating in bidding for agricultural land here. Previously, during the great economic recession of 2007, the amount of money poured into agricultural land increased sharply when many organizations wanted to find safe investment channels to protect themselves from the housing crisis.
Today, investors have the opportunity to own more agricultural land when a large number of farmers reach retirement age.
About 1/3 of agricultural land in the US is owned by farmers. over 75 years old. Over the next few years, an estimated 92 million acres of agricultural land may be transferred to investors.
Craig Dobbins, professor of agricultural economics at Purdue University, said agricultural land in particular and real estate Real estate is generally smart investments to balance the risks brought by investing in stocks and bonds. Buyers often receive the expected rate of return from such investments.
However, because agricultural land is currently considered a financial investment, rising prices will cause difficulties. for young farmers new to this field.
On the other hand, foreign investors increasingly want to own agricultural land in the US. Foreign buyers currently hold 25 million acres of this country’s agricultural land, equivalent to the size of the state of Virginia. Of which, China controls more than 400 farms.
This situation has caused some states such as Iowa to ban the sale of agricultural land to foreign buyers while other states have also enacted laws limiting the area Land is allowed to be sold.
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