A new breed of investors
Most of these folks have never planted seeds or brought in a harvest. To them, it is just another tradable asset they hope will bring in a return that beats other investments.
As we all know in the farming community, dangers lurk for investors purchasing farmland at elevated prices. As with stocks, farming can swing in a different direction on news of abundance of grain harvested overseas or bumper crops in the United States.
There are some that say commodity prices may be an unsustainable bubble.
Yes, I miss the days of going to a land auction with my dad years ago and watching farm neighbors bidding against each other toward the ultimate prize. The tension in the room was so thick you could cut it with a knife. It was a fascinating process. It is something I will never forget.
No, “the Russians aren’t coming,” but remember when you attend the next farmland auction, it might not be your neighbor you have to out bid, it might be your stockbroker from New York City.