Why More Investors Are Turning to Farm Land in 2025
Farmland investing isn’t just for farmers anymore. As inflation rises and asset markets shift, more investors are diversifying into agricultural land for its stability, passive income, and long-term appreciation. But here’s the key: there’s no one-size-fits-all way to invest in farmland. You can go hands-on and buy a parcel to lease out. Or, you can take a hands-off route with ETFs or fractional platforms like AcreTrader.
In this guide, I’ll walk you through exactly how to invest in farm land even if you’ve never set foot on a field. We’ll break down ETF strategies, leasing in Ohio, online platforms, and what to know before investing in Egyptian farmland. Whether you’re looking for passive yield, portfolio diversity, or just want to own a piece of something tangible, this post gives you the full roadmap.
How can I invest in farm land with ETFs?
To invest in farm land using ETFs, you need a brokerage account, a basic understanding of agricultural markets, and a strategy to choose the right funds such as DBA or MOO that hold assets tied to farmland productivity.
This is one of the most accessible entry points into farmland investing. With ETFs, you do not need to purchase or manage physical land. Instead, you buy shares in funds that track agricultural commodities or farmland-related companies. These investments can provide portfolio diversity, inflation protection, and indirect exposure to land-based agriculture.
What are agricultural ETFs and how do they work?
Agricultural ETFs are publicly traded funds that bundle together stocks, futures, or other assets linked to agriculture. While some focus on commodity prices like corn or soybeans, others invest in companies that own or manage farmland, produce equipment, or supply chemicals and seeds.
These ETFs trade on stock exchanges just like regular shares, which means you can buy or sell them quickly through any standard brokerage platform.
Top ETFs to consider for farmland exposure
Here are some of the best-known ETFs that give you exposure to the agricultural and farmland sectors:
- DBA (Invesco DB Agriculture Fund): This tracks the price of agricultural commodities like wheat, soybeans, and corn. It is one of the most popular and liquid agri ETFs.
- MOO (VanEck Agribusiness ETF): This invests in companies that operate in the agricultural supply chain, including seed producers, chemical firms, and equipment manufacturers.
- VEGI (iShares Global Agriculture Producers ETF): This holds shares in global agricultural producers and can be useful for investors looking for international exposure.
Each of these has different strategies. DBA focuses on price movements of commodities, while MOO and VEGI target the performance of companies that operate in or support farmland.
How to evaluate an agri ETF before investing
Before you invest, review the ETF’s:
- Expense ratio: Lower is generally better, as it reflects the annual fee you’ll pay.
- Underlying assets: Know whether it tracks commodities, companies, or physical farmland.
- Liquidity and trading volume: This affects how easily you can buy or sell.
- Performance history: Past returns don’t guarantee future results, but they help set expectations.
You should also consider whether the ETF fits your risk profile. For example, commodity-based ETFs like DBA may be more volatile than business-focused ones like MOO.
Pros and cons of investing in farm land with ETFs
Pros:
- Easy to buy and sell through any brokerage account
- No property management or maintenance
- Provides inflation hedge and diversification
- Low entry cost
Cons:
- No direct land ownership
- Returns may be tied more to market cycles than farmland performance
- Limited control over where or how the money is used
If you’re looking for quick exposure to agriculture without managing real property, farmland ETFs are a solid starting point. But if your goal is long-term control, passive income, or appreciation from actual land ownership, other methods like leasing or direct purchase may be a better fit.
Is buying farm land a good investment?
Buying farm land can be a smart long-term investment because it offers stable returns through rental income and land appreciation, while also acting as a hedge against inflation and economic volatility.
Farmland has historically outperformed many traditional assets in terms of risk-adjusted returns. Unlike stocks or crypto, land is a tangible, limited resource. People will always need food, which means demand for farmland continues even during recessions. The combination of income from leases and the long-term increase in land value makes this asset class particularly attractive for both conservative and growth-focused investors.
Why farm land is considered a strong investment
Farmland is seen as a defensive asset that performs well when markets are uncertain. One key reason is that farmland values tend to remain stable or even rise when stocks fall, especially in inflationary environments. Since farmland produces commodities tied to food and biofuels, its value is tied to necessities rather than consumer sentiment.
This makes it a useful counterbalance in a diversified portfolio. Many institutional investors, like pension funds and endowments, now hold significant farmland positions for this reason.
What to evaluate before buying farmland
Before purchasing farmland, investors need to evaluate factors that affect both short-term income and long-term land value. These include:
- Soil quality and water access
- Zoning and land use restrictions
- Property location and access to distribution infrastructure
- Regional demand and lease rates
- Local tax structures and subsidies
A property with poor soil or without irrigation infrastructure can dramatically reduce your return. On the other hand, land in a high-demand area with solid lease contracts can deliver consistent income from day one.
Understanding returns: cash flow vs appreciation
Returns from farmland come in two primary forms: annual lease income and appreciation of the land’s value over time. Depending on the region, rental yields can range from 2 to 5 percent annually. Appreciation adds an additional return, with average farmland values in the U.S. rising steadily over the past 50 years.
For example, if you buy a $300,000 parcel that brings in $9,000 annually in lease income and appreciates by 3 percent annually, your total return could exceed 6 percent per year, not accounting for tax benefits or leverage.
What are the risks of buying farm land?
Despite its stability, farmland investing does carry risk. Some of the most common include:
- Regulatory changes, especially in water usage or property taxes
- Environmental risks like drought or flooding
- Market volatility affecting crop demand or commodity prices
- Lack of liquidity, since land takes longer to sell than stocks or bonds
- Tenant risk, including payment defaults or land misuse
In certain regions, like parts of Egypt or areas with rapidly changing zoning laws, these risks are magnified. This is why due diligence is essential before purchase, especially for out-of-state or international deals.
Can I invest in farm land online without buying acreage?
Yes, you can invest in farmland online without purchasing physical property by using real estate crowdfunding platforms or agricultural REITs that allow fractional or pooled ownership of farmland assets.
This method is ideal for investors who want exposure to farmland returns without the responsibilities of managing tenants, maintaining the land, or dealing with zoning regulations. Online platforms and public REITs handle the hard work, while you receive a portion of the income or appreciation based on your share.
What is the difference between REITs and crowdfunding platforms?
Both REITs and crowdfunding options offer indirect access to farmland, but they operate differently.
- A REIT (Real Estate Investment Trust) is a publicly traded company that owns income-generating properties. In the case of farmland REITs, the fund owns agricultural land and distributes earnings to shareholders. You can buy REIT shares through a regular brokerage.
- A crowdfunding platform is a private marketplace where accredited or retail investors can directly fund farmland deals. These platforms often allow fractional ownership in specific farms, and investors receive income from lease payments or crop profits.
Crowdfunding platforms tend to offer more transparency and control over individual deals, while REITs offer liquidity and ease of entry.
Which online farmland investing platforms are most popular?
Two of the most established farmland crowdfunding platforms in the U.S. are:
- AcreTrader: Offers curated farmland investment deals and handles everything from due diligence to land management. Minimum investments typically start around $10,000.
- FarmTogether: Provides access to institutional-grade farmland opportunities, often with slightly higher minimums. The platform emphasizes sustainability and long-term hold strategies.
Both platforms provide investor dashboards, performance tracking, and annual tax documents. These tools enable you to invest in farmland passively, allowing you to monitor your investment just as you would with stocks.
How does fractional ownership in farmland work?
When you invest through an online platform, your money is pooled with other investors to purchase a specific farm. Each investor owns a percentage of that asset, and returns are distributed based on ownership share.
You may receive income quarterly or annually, depending on the lease terms or crop cycles. At the end of the hold period, the land is sold and the appreciation is distributed accordingly.
This model reduces barriers to entry while still allowing investors to benefit from land-based cash flow and long-term value growth.
Pros and cons of online farmland investing
Advantages:
- No need to manage or inspect physical land
- Geographic and crop diversification
- Lower minimums compared to direct purchases
- Performance tracking tools and reporting
Disadvantages:
- Limited liquidity; most investments have multi-year holding periods
- Platform and management fees can reduce returns
- Some offerings are limited to accredited investors
For many first-time land investors, these platforms provide a strong bridge between traditional markets and direct real estate ownership.
Should I buy farm land to lease in Ohio?
If you buy farm land to lease in Ohio, you can earn steady annual income while benefiting from long-term land appreciation, especially if you select high-quality acreage and structure a competitive lease agreement based on local market rates.
Leasing out farmland is one of the most common ways to turn a passive profit on rural land. Ohio, in particular, offers attractive conditions for investors due to its favorable lease laws, strong agricultural presence, and relatively affordable land compared to other states. However, profitability depends on local conditions, lease structure, and long-term maintenance considerations.
What are current farm land rental rates in Ohio?
According to recent USDA and Ohio State University Extension data, average cropland lease rates in Ohio range from $140 to $210 per acre annually, depending on the region. Highly productive areas in Central and Western Ohio tend to command higher rates, while more rural or hilly counties fall on the lower end.
For example:
- Western Ohio: $190–$210/acre
- Central Ohio: $160–$185/acre
- Appalachian counties: $120–$145/acre
If you own 100 acres and lease at $180 per acre, you could earn $18,000 per year in gross income. After taxes, insurance, and any management fees, net returns typically fall between 3 and 5 percent annually.
What legal rules govern farmland leasing in Ohio?
Ohio farmland leasing is governed by both general property law and state-specific provisions like House Bill 397, which covers landlord-tenant relations in agricultural contexts. Most farmland leases in Ohio are written contracts with terms ranging from one to five years, though verbal leases are still legal and common in some counties.
Investors should pay close attention to:
- Term length and renewal conditions
- Maintenance responsibilities
- Soil conservation agreements
- Notice period for termination
Working with an attorney familiar with Ohio’s agricultural leasing laws is strongly recommended before finalizing a deal.
How to evaluate a lease investment model in Ohio
Here’s a basic lease model to assess whether buying land to lease makes financial sense:
- Purchase price: $350,000 for 100 acres
- Lease income: $180 per acre → $18,000/year
- Operating expenses: $3,000/year
- Net income: $15,000/year
- Cash yield: 4.3 percent
- Appreciation potential: 2–4 percent/year depending on region
This kind of deal becomes even more attractive if you buy with cash or at a discount, or if the property has long-term growth potential due to urban sprawl or infrastructure development.
What are the pros and cons of leasing farmland in Ohio?
Advantages:
- Consistent annual income
- No need to farm or manage the land yourself
- Tenant takes responsibility for crop production and land use
- Strong agricultural community and legal infrastructure
Disadvantages:
- Risk of tenant default or poor land stewardship
- Property taxes and insurance reduce net returns
- Leases require legal oversight and renewal management
Ohio remains one of the most favorable states for farmland lease investing due to its balance of affordability, agricultural strength, and legal protections.
Is investing in farm land in Egypt a viable option?
Investing in farm land in Egypt can be a high-risk, high-reward opportunity due to major land reclamation projects, but it requires deep understanding of land laws, infrastructure challenges, and restrictions on foreign ownership.
Egypt has attracted growing attention from global investors through its agricultural development initiatives, especially the 1.5 million feddan project and land expansion in areas like Toshka and Sharq El Owainat. The government is pushing to reclaim desert land for farming, but navigating legal complexities and operational hurdles is critical for success.
What farmland investment opportunities exist in Egypt?
There are several major regions in Egypt that have become centers for farmland investment. These include:
- The 1.5 million feddan project: A national effort to reclaim and develop agricultural land in desert areas
- Toshka Valley: Supported by government irrigation expansion and international partnerships
- Sharq El Owainat: A remote but fertile area, often leased to large-scale investors or corporations
In these zones, land is typically sold or leased through government programs or local companies. While prices may be low compared to the U.S. or Europe, the cost of infrastructure and land preparation can be substantial.
What laws affect foreign investment in Egyptian farmland?
Egypt’s agricultural land law places strict limits on foreign ownership, especially in desert areas classified under the Desert Land Law. Non-Egyptian individuals and companies often face the following restrictions:
- Foreigners cannot own more than 10 percent of any agricultural venture without government approval
- Most land must be held under leasehold or joint venture structures
- Land transactions involving reclaimed desert areas may require security clearances or ministry-level approvals
Investors usually work with local partners to legally structure deals through Egyptian entities. Legal counsel is essential to avoid contract disputes, regulatory shutdowns, or long-term ownership issues.
What are the risks of investing in Egypt’s farmland?
While the upside can be significant, Egypt’s farmland investment market includes several notable risks:
- Soil quality: Many reclaimed lands have high salinity or require major preparation
- Water access: Irrigation systems may not yet be operational or may face seasonal shortages
- Infrastructure: In remote areas, roads, electricity, and internet access may be minimal
- Legal enforcement: Land title registration and enforcement systems may be inconsistent
- Currency volatility: Returns may be impacted by fluctuations in the Egyptian pound
Due diligence should include on-the-ground inspections, legal audits, and contingency planning for logistics, water, and title verification.
How can investors structure a safe deal in Egypt?
Most successful investors use one of the following strategies:
- Form a joint venture with a local Egyptian agricultural company
- Lease land from a government body or private developer with a renewable term
- Partner with Egyptian shareholders in a locally registered company that holds the land rights
Each approach requires different legal protections, exit strategies, and due diligence standards. Some investors also layer in insurance or political risk guarantees through international development institutions.
Pros and cons of farmland investing in Egypt
Advantages:
- Low land cost compared to global markets
- Strong governmental support for reclamation projects
- Opportunity for first-mover advantage in high-potential areas
Disadvantages:
- Complex legal environment for foreigners
- Significant startup costs for infrastructure
- High risk of operational delays or land disputes
For experienced investors or those with local partnerships, Egypt offers a frontier opportunity in farmland investing. However, it is not ideal for beginners or those seeking passive exposure.
Mini FAQ: Farm Land Investing
Is buying farm land a good investment in 2025?
Yes, farm land continues to be a strong long-term investment due to its stability, passive income potential, and historical resistance to inflation. It can offer both cash flow through leases and appreciation over time.
Can I invest in farm land without owning physical property?
Yes, you can invest without owning land directly by using ETFs, agricultural REITs, or farmland crowdfunding platforms that offer fractional ownership in professionally managed properties.
What’s better: ETFs or buying land to lease?
It depends on your goals. ETFs offer liquidity and ease of entry, but do not provide direct ownership. Buying land to lease offers more control and long-term upside but requires more capital and management.
How much does farmland lease for in Ohio?
Farmland in Ohio typically leases for $140 to $210 per acre annually, depending on soil quality and region. Western Ohio tends to have the highest lease rates due to strong crop yields.
Can foreigners buy farm land in Egypt?
Foreign individuals and companies face restrictions when buying agricultural land in Egypt. Most foreign investors structure deals through joint ventures, long-term leases, or Egyptian-owned entities.
Is farm land investing better than residential real estate?
Farm land tends to have lower volatility and fewer maintenance issues than residential property. However, it also has lower liquidity and requires specialized knowledge of agriculture or leasing.
