Agriculture Investment – Harvesting the Profits From Land

Many “hobby farmers” or “lifestylers”, – City workers and canny investors, are using their capital to chase the dream of farmland near bangalore and buying farmland, and non-farming buyers make up a much larger proportion of sales than ever before. This has contributed to the recent escalation in the rise of farmland prices, as agricultural land continues to beat both commercial property and the residential market.

During the past six months arable land has rocketed in value by 8%, and by 13% year to date (July 2010) according the Knight Frank Farmland Index, with most experts believing prices will continue to rise for at least seven years. The price of agricultural land rose by 19.7% for the twelve months to July, and continued interest from institutional funds looking to invest in agriculture by purchasing vast tracts of farmland and leasing it to commercial farmers is adding to the upward pressure.

Many savvy investors are now looking to swap faltering residential and commercial. Buy to let investments, and invest in a piece of good quality agricultural land instead. Some have been frightened off from the stock market due. The ongoing volatility and lack of visibility in the market. And are now also investing in farmland near bangalore for a more stable income and positive growth. These high-net-worth investors pursuing the farmland dream are not alone in their hunt to acquire and invest in farmland. Values are also feeling upward pressure as food prices increase at a time. When there is a sharp decrease in the amount of agricultural land for sale.

Commodity prices for wheat and other cereals are at a 40 year low but peaked in 2008. According to leading finance broker Savills Private Finance. The actual acreage being advertise publicly has fallen from around 600,000 acres. The 1960s down to around 125,000 acres today. There is still a lack of supply, although we source our assets from land owning farmers. That want to become tenant farmers because mortgage payments are too high. So we get access to farmland that is not on the open market.

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