Girotto: Farmland historically appreciates 6% annually from inflation and yield gains
Jay Girotto · Jay Girotto – Farmland Opportunity (First Meeting, EP.10) · Oct 14, 2019 · at 18:25
Jay Girotto, founder of Farmland Opportunity, breaks down the historical drivers of farmland appreciation in the United States.
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“Historically, that has been around six percent. Half of that is inflation. This is a Very good inflation hedge. Soybeans go into like 3000 products, including the pen you're holding right there. I mean, it goes into everything. It is an inflation hedge, tracks inflation. And then the other three percent has been basically from crop production growth. So you're just producing more corn, more soybeans, more wheat, more garbanzo beans, whatever it is. And that has driven the other component of land value appreciation.”
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