New Trend? Investors "Adjust" Land Portfolio

Published on: 11:13AM Aug 02, 2011

Mike Walsten

Some savvy land investors are "adjusting" their land portfolio by selling some of their current holdings and buying farmland in other states and other land types. That's according to long-time land pro Murry Wise, CEO of Murray Wise Associates LLC, Champaign, Illinois. "An overlooked result of today's vibrant farmland market is that agricultural land now has more liquidity than ever," he states in a press release. "And that is enticing more owners to sell land they currently own and -- in some case -- buy other farms to fine-tune their land portfolios for the long run." That means lightening up on their concentration of Illinois cropland, for instance, and buying wheat-ground in the Northern or Central Plains or irrigated cropland in western Kansas.

"Farmland has always been a long-term investment, and it probably always will be. But because agricultural land has become an important component of may investment funds and individual portfolios, there is now a ready market made up of local farmers and outside investors alike," says Wise. "This makes it possible to diversity a farmland portfolio by region, crop, quality and other criteria."

"Even though recent prices on agricultural land have raised some eyebrows," Wise continues in his press release, "demand continues to strengthen. Investors and farmers frequently square off in auctions, especially when the land is offered in tracts."

Wise says his firm is gearing up for a series of seven August and September auctions featuring more than 6,000 acres in Indiana, Illinois and Missouri for a group of landowners that are making adjustments to their land portfolios. Click here for the full press release.

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