Farmland prices

My opinion, if you can afford good quality farmland that is for sale, that investment has the potential to enhance your family’s generational wealth long term.

Don’t treat it like a casino - buy it and plan to hold that asset for generations. I wish I could afford quality land, but whatever. Good luck.

I have 34 acres (pasture with two frontage roads) I recently inherited in Choudrant, La.

About 8 miles north of I-20, in the highly desired Choudrant School District (Squire Creek Area).

I've been offered 5K-7K an acre for it several times and I recommended they pound sand.

I'd let it go for 400k but if not I'll pass it to my son.

In the area he’s described, he needs to hold if he can. 10,000 an acre isn’t uncommon.

I've only seen land go up in value especially in the last 10 years

Who knows where the future takes us, but USDA publishes historical ag land values. Historically it’s a good investment (competitive with other conventional means) if:
1. you can buy it way below market,
2. you get lucky on a speculative purchase
3. You need to diversify and are ok with the modest return
4. You derive significant personal enjoyment from land ownership and are ok with the modest return.

I own timberland for which I’d get a 4-5% annualized return if I sold now. Money would’ve been better off in an index fund. But I’m in group 4.

ETA: this is all based solely on appreciation of land values, neglecting any income produced by the land from farming, timber, agri-tourism, etc.

Unfortunately they don’t make land anymore. It should continue to climb. If you look at any graphs over the last 60+ years there may be dips but the overall trend is up. I believe it’s a very good long term investment.