Farmland has great intrinsic value. Owners of arable land can increase this value through alternative agricultural investments. These investments usually take the form of improvements that make the land more useable and profitable. Alternative agricultural investments often benefit land owners by enhancing productivity and increasing the overall rate of return. It is important to note as well that alternative agricultural investments can be depreciable. Productive, developed farmland also strengthens local farming communities which enhances the overall agricultural economy.
The most fundamental unit of agricultural investment is LAND. Alternative agricultural investments are ways to increase the quality and output of that land. Landowners accomplish this through a variety of farmland improvements. Some improvements affect the land directly, such as:
These basic farmland investments can make the land healthier and more valuable. The quality of farmland plays a large role in its productivity. The more productive a parcel of land, the more attractive it is as an investment.
Some alternative agricultural improvements are designed to allow owners more flexibility in land usage. Alternative Agricultural Investments are particularly valuable additions to agricultural plots. Owners may greatly increase the efficiency and utility of their land by building infrastructure such as:
When you buy or sell land that has been improved through alternative agricultural investments, you reap the benefits. As a landowner, pursuing one or more of these additional investments can help you improve the productivity of the land and increase your rate of return with a depreciable asset.
At Kuperland, we are well-versed in alternative agricultural investments. We identify possible improvements to farmland and implement a tailored investment strategy that is beneficial to both the landowner and property. If you are interested in learning about creative strategies to land you already own or possible farmland purchases, contact Kuperland Farmland Investing to find out how we can help.