Many times your editor has been counseled that if a person can make the payments through the first five years of a land purchase, farmland ownership is a strong cash and wealth producer over time. A recent analysis from Iowa State University again proves that point. The work was conducted by William Edwards, retired economist; Don Hofstrand, retired extension value added agriculture specialist; and Ann Johanns, extension program specialist. Their work utilizes data compiled by USDA and looks back to 1970. The analysis looks at cash returns, returns by financial period and returns by date of purchase.
While results have varied widely on an annual basis, the bottom line is farmland ownership is a strong method of building wealth.
The study is extensive and to do it justice, please click on the pdf below to read the full report. You will find this link leads to the current issue of ISU's Ag Decision Maker. The article begins on page 2. The first article is well worth reading, as well.