Positive Future News #924 (Feature Photo – Strawberry Field – CCA SA 4.0 International)
According to the USDA, of the 895 million acres of farmland in America, approximately 315 million acres are in crops, and 580 million acres in are in pasture.
The USDA’s Land Values 2021 Summary shows that farmland for crops increased from $2,980 an acre in 2011 to $4,420 an acre in 2021 – a 49 percent increase. Land with water and suitable for high value crops can exceed $30,000 per acre. Most farmers, cannot buy new farmland at the current market, unless they can spread the cost over acres that are already paid for or with low mortgages on them.
For pastureland, land increased from $1,070 and acre in 2011 to $1,480 an acre in 2022 – a 38 percent increase.
Farmland and pastureland close to a city, can have prices off the charts. Globally, billions of dollars are flowing into farmland as investments. Popular are Wall Street real estate investment trusts REITs), pension funds, and individual private investors.
Given ongoing volatilities in the food chain and prices, it may not be too far in the future when the yard of a residential property, is noted for its agricultural production capacity.
