Marshian
Well-known member
I am toying with the idea of buying some farm or ranch land (between 100 and 500) acres partially as an investment but also to to hunt on. I attended a farm seminar put on by MSU and a saw that rural land costs roughly $1000/ acre and if I cash lease this out to a farmer my return on a cash lease will be roughly $20/ acre which is a quite poor 2% return and doesn't even include property taxes or maintenance. When I asked the speaker about this, he said the only way to make the numbers work is if you are sure the land itself will increase in value enough over the next 10-20 years and that the resell is where I may make a profit. It does seem really nice to own some land, but I not sure if rural land will overall outdo the stock market. Anyone have any thoughts or experience with this? Thanks.