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Finding the right time to invest in farmland

The head of FBN Finance says it’s a good time to invest in farmland despite record high prices.

Dan English says farmland is a great tool to diversify investment portfolios when other markets are more volatile. “Because inflation is so high, real rates are actually negative,” he said. “That’s just the difference between what the interest rate paid by farmers is and what the inflation rate is. It’s still a relatively good investment for land.”

He says farmland performs well during inflationary periods. “If you look at what the earning potential of that land is with these higher grain prices, we think there’s still a lot of value there in farmland we expect that to continue to trend up.”

English says he expects the farmland market to remain strong in 2023.