An acquisition of $7 million worth of farmland by the Nashville-based closed-end private equity firm LandFund is a stark recent example of why those concerned with responsible stewardship of the land need to act soon to preserve our agricultural lands.
An article in The Tennessean breaks down the reasons why investing in farmland is so profitable. Like any other real estate, farmland has become a way to make money, but not for the farmer.
The article relays the farmland grab from the side of big business, with excerpts like this:
“(A broker) recalled having a client two years ago paying $6 million for 2,000 acres in Arkansas and then sold it within a year for 20 percent more to investors from Argentina. “It’s an attractive investment — people always need food,” (he) added. “So farmland is always going to be in demand.”