McLeod County MN | FW30 - 1/6/2025 12:02
I sold a nice, paid-for, 160 acre farm a few years ago, and put all of the money into the stock market...
A few reasons:
1) It was too far away for me to take my equipment, so was already an "investment" farm from the start.
2) Even overseeing it as a landlord (a 500 mile round trip) was not convenient.
3) It fit extremely well into a local farmer's operation, and he asked to buy it at a strong price level.
4) Asset allocation - I think everyone should consider this from a risk management perspective. Now I still have more assets in farming than stocks, but at least I have a much better balance.
Maybe I am lucky, or maybe good at stock investing, but I have averaged 20% annual returns on that money over the last three years. This is a much higher return than if I had held the land...
"20% on the amount you invested." Did you figure in the amount you gave away in taxes. In my opinion there would be more land sold and invested into other things if it wasn't for the huge amount of tax that would have to be paid on the sale of the land. |
Sand 85. Great post and worthy of discussion
