Has anyone dabbled in farmland?

Question

Has anyone invested in farmland? I am curious about peoples experiences. Please tell. It seems like pretty solid returns.

Bill B. · Answer

I don’t know how you make the numbers work unless you inherited the land, or bought it more than 40 years ago…

In western MN near the SD border. 160 acre quarter will cost you about $7-8,000 x 160 or about $1.1 - $1.3 million. This can be rented out for about $30-$35k per year. About a 3% return if you pay cash and have no expenses (like insurance or property taxes).

I’ve looked in to doing a 1031 of some of my properties to help my relatives acquire land. But the returns are worse than a couple $250k homes.

Juan Jorge · Answer

Not yet, but have goals to do so. In research mode now. In the meantime, buying shares of LAND. Also, trying the Iowa tax sale track. Have you looked further into farmland investing since your last post? What have you discovered?