Tired of the dizzying highs and lows of the stock market and crypto? What if the most powerful, recession-resistant asset in your portfolio was something you could stand on—farmland, an investment that has quietly outperformed the S&P 500 for decades with a fraction of the volatility?
In this episode of the 5-Minute PRIME Podcast, host Martin Maxwell kicks off a new series by digging into one of the most resilient but overlooked asset classes: farmland. This isn’t just about rolling hills and tractors; it’s a deep dive into a $3.5 trillion sector driven by the most non-negotiable demand on Earth: the need to eat.
Tune in to learn:
- The Financial Powerhouse: A clear, data-backed breakdown of why farmland has delivered consistent, positive returns every single year since 1990, even during major market crashes.
- The Two Engines of Profit: How farmland generates a dual-return through both long-term land appreciation and steady, predictable cash flow from rent.
- The Ultimate Defensive Play: Why this tangible asset is one of the most effective inflation hedges available and a powerful tool for diversifying your portfolio away from public market volatility.
- The Unvarnished Truth: A balanced look at the pros and cons of direct farmland ownership—from its legacy-building potential to the real-world challenges of illiquidity and management.
Are you ready to look beyond traditional assets and discover the investment that literally feeds the world? Subscribe now to explore why farmland might be the bedrock of your financial future.
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Show Notes: Farmland
Key Takeaways
- Farmland’s Consistent Returns: Since 1990, U.S. farmland has posted positive annual returns, averaging over 10% from 1992–2024—even through market crises.
- Superior Risk-Adjusted Performance: Farmland combines strong returns with low volatility, delivering better efficiency than many traditional assets.
- Two Engines of Profit: Investors benefit from long-term capital appreciation (land value growth) and current income (cash rent and ancillary revenue streams).
- Defensive Asset Class: Farmland offers diversification with near-zero correlation to stocks and bonds, plus serves as a premier inflation hedge.
- Balanced Reality Check: While farm is tangible, enduring, and tax-advantaged, it is also illiquid, capital-intensive, and management-heavy.
Action Step:
- Filter by Cropland: Select agricultural or cropland properties in states like Iowa (average price per acre ~$11,400) or Illinois (~$10,900/acre).
- Review Typical Acreage: Most productive parcels fall in the 40–160 acre range for individual investors.
- Study Listing Language: Pay attention to terms like tillable acres, soil productivity index (CPI), irrigation rights, and cash rent potential.
- Document Findings: Record acreage, asking prices, and rent estimates in a spreadsheet for pattern recognition over time.
Mentioned in This Episode
Websites
- Land.com – Marketplace for agricultural and rural properties.
- Crexi – Commercial real estate exchange with farmland listings.
Challenge for Today:
- Step 1: Pick a State – Choose a top agricultural state (e.g., Iowa, Illinois, Nebraska).
- Step 2: Browse Listings – Look at 3–5 farms listings online. Note the acreage, soil quality, and pricing.
- Step 3: Compare Cash Yields – Estimate rent returns. Typical U.S. cropland rent is $155–$260 per acre annually.
- Step 4: Spot Trends – Track recurring features (irrigated vs. non-irrigated, soil ratings, proximity to markets).
- Step 5: Reflect – Ask yourself: Would this farmland act as a defensive, long-term wealth builder in my portfolio?
