5 Reasons To Invest/Buy Rice Farms, Hunting Land, Farm Land In AR/LA/MS & Finding Farms For Sale
- Rice farms located in Arkansas, Louisiana and Mississippi have surfaced as one of the best investment vehicles offered over the past 60 years. However, institutional investors, investment groups, pension funds and non-farm individuals have only recognized the value in rice farm investments, for the most part, over the past 10 years. This is a relatively new real estate investment vehicle where investors can essentially get in on the ground floor. Even though rice farm prices have more than doubled over the past 10 years, there remains good projected growth. Some agricultural economists are predicting enormous gains for farm land values in the future.
- Rice farm real estate values have NOT seen any erosion in value even in the present economic downturn that the U. S. is experiencing. Mid-south rice farms have, on the contrary, provided a substantial return on investment and rising appreciation rates even during the present economic recession. This trend is expected to continue in the near and long term with rising commodity prices and high rental rates.
- Rice is the staple food for over half of the world population. The U. S. produces less than 3% of the world total, but grows extremely high quality grain that is sought after by the domestic U.S. population and by foreign governments. U.S. exports are continuing to grow with increased demand for rice from around the world. With the world population increasing and the greater affluence of the populations of India and China, rice should continue to command high prices thereby buoying the demand for mid-south U.S. rice farms. Landlord rents will likely continue to increase along with the appreciated value of American rice farms due to these facts.
- There are a limited number of acres in the U.S. where rice can be grown. The availability of water, clay soils and climate must all come together for the successful production of rice. Arkansas grows nearly 50% of the total U.S. rice crop. Rice farms in Arkansas are matured and well developed farming operations that are becoming highly sought after for farm real estate investment. Mississippi and Louisiana have come to the fore in rice production over the past 20 years and continue to improve the quality of their rice farming operations. On the other hand, California has experienced a substantial decline in rice production due to the lack of available irrigation water. The price of water and availability of it in the rice growing region has contributed to the falling number of rice acres in California. Considering the limited availability of area where rice can be grown also contributes to the increasing demand for investment in rice farming operations in Arkansas, Louisiana, and Mississippi.
- Rice farming operations have consistently made money for investors since the 1950’s when rice farming started to grow in the mid-south U.S. Governments of the world recognize that a population that is adequately fed will be less likely to initiate uprisings and will help to keep peace among the masses. Taking this into consideration, along with the still affordable price for rice around the world, and the steadily increasing demand, should make the future for rice farming and investment in rice farms a solid long term investment.
Aaron White has been a farm land broker for over 37 years in the Arkansas, Louisiana and Mississippi region. He is considered an expert in his field and has the reputation and success to prove it. White Land Company has sold over $600 million in farm land investments since its inception. Mr. White grew up on an Arkansas rice farm and is also very successful in the sale of recreation properties that are associated with waterfowl hunting. His avid waterfowl hunting background helped lead to his extended experience with hunting properties. For further information concerning farm land or hunting land investments contact Aaron White, principal broker/owner for White Land Company, at [email protected].
5 Reasons To Invest In Mid-South Delta Farms/Farm Land AR/MS/LA. Help Secure Your Financial Future
Productive agricultural farmland in the mid-south delta has proven to be one of the safest dollar investment vehicles over the past 60 years with a great return on investment/ROI. Investors in farm land come from all walks of life and backgrounds. YOU can invest in farmland as easily as purchasing any other kind of real estate. Here are five great reasons to invest in farmland.
1. Mid-south farmland values have experienced tremendous appreciation rates, as much as 1500%, over the past sixty years. During this same period annual agricultural returns averaged over 5% of the investment per year from rental and lease incomes. Statistics show the only decrease in farmland values were between 1982 and 1987. Therefore, landowners not only received an annual return on their investment, but also a MAJOR capital gain.
2. Mid-south farmland is a tangible asset that can also be used for potential development, pastureland, commodity/grain production, water storage, and reusable/renewable energy production. As cities in the U.S. have expanded, farmland has become a more valuable asset to the landlord. Many cities in the U.S. have grown to the rural areas, making farmland in these areas extremely valuable for commercial, residential, and industrial development. That trend is expected to continue.
3. Rising commodity prices, interest rates and inflation tend to favor farmland investors in times of tumultuous economic upheaval. In the event of economic collapse, the farm is a place of refuge and assurance that your family will not go hungry. As the number of farms in the U.S. decline and the world population continues to grow, logic tells us that farmland investment over the long term can be an investor’s dream.
4. Mid-south delta farmland has one of the most valuable commodities known to man --FRESH WATER. Because water is a necessity for the production of commodities, the abundant delta water supply is a luxury that most U.S. farmland does not have. Most farms in the mid-south delta have enormous underground water reserves that are inexhaustible due to the underground formations that are recharged by the Mississippi River. As long as the Mississippi River flows, there will be abundant water reserves for the mid-south delta.
5. As commodity prices increase and rental incomes rise, the investor’s annual rate of return also continues to increase. A deflated dollar makes commodities grown in the U.S. more attractive to countries that import food. Rising commodity rates also translate to increased land values. This fact makes the farmland owner receive greater annual returns on his investment as well as reaping the benefit of increased appreciation in the value of the farmland.
About the Author
Leading mid-south farm land broker, Aaron White, established White Land Company in 1977 after working for the USDA 8 years from 1969 – 1977 as Executive Director for the Farm Service Agency. He was born and raised on an Arkansas rice farm and has been close to agriculture his entire life. Over the past 37 years, Mr. White, BA from Arkansas State University, has successfully sold and closed over $600 million in agricultural investments. An avid duck hunter that has sold millions in waterfowl hunting properties, Mr. White also excels in his knowledge of valuable hunting properties located in the Arkansas, Mississippi and Louisiana delta lands.
To learn more, call Aaron White, principal broker for White Land Company, Inc. at 501-276-0846 or email us at firstname.lastname@example.org. Visit our web site at www.whitelandcompany.com
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