Re: Farmland investment products coming soon?
That's just it. I don't see that this market can continue to increase at it's current pace.
Suburbia isn't sprawling anymore. The developers/investors have stopped purchasing presently farmed acreage, cutting off a major supply of cash used to buy farmland in more rural areas. Section 1031 exchanges, low interest rates and government subsidies have been around for quite a while, so I do not see these as trend items pointing to bullish futures.
I concede that commodity prices have gone up. This will allow for some increase to the land pricing. I just think it was a perfect storm these last 5-10 years for farmers in rural areas. The main cash driver of that storm, investor/developer money, has left for the foreseeable future.
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