I'm looking at a couple of investment options (multi-units), but one of them that has been sent to me by a realtor is farmland. I have little knowledge in land and never thought about adding land to my portfolio. There is 86 acres (roughly 80 acres tillable) of land that has CRP contract through 2026 which pays out annually at $21K. They are asking $6,900 an acre for the land and is resides in North/Central Iowa. Your cash-on-cash return looks terrible, so why would this be attractive to an investor? I'm strictly looking at this as an investor (cash flow), not as a farmer. Maybe I'm missing the bigger picture but why would this be a solid investment...
Just out curiosity, why would a farmer want this if he can't do anything till 2027?
Just out curiosity, why would a farmer want this if he can't do anything till 2027?