Analyzing Investments in Rural Alabama Land

According to a 2007 report entitled Alabama Farm Real Estate: A Comparison of Returns and Values Since 1970 published by Auburn University professors and extension service economists John Adrian and Walt Prevatt, the average price of farmland in 1970 was $200.00 per acre. By 2007 the average price of farmland jumped to $3100.00 per acre. This calculates to a 1450% increase over the 37 year period or 40.3% per year. Yearly cash flow values that affect the rate of return over time i.e; crops, crop leases, hunting leases and government subsidy programs have also increased greatly over the same period.

The figures for timberland are similar to farmland in their rate of return, the main difference being that over the same 37 year period much of the appreciation in timberland is not only in the land but also in the commodity (timber) which would have yielded somewhere between $2000.00 and $4000.00 per acre over the same period depending on the type of timber and the quality of the soil.

The figures above are generalized to the whole state and of course over time some farm and timber tracts appreciate faster than others. Some farm and timber tracts provide yearly income and others provide very little. Appreciation rates for farmland and timberland can be greatly increased if land is purchased that transitions over time, either through regional population growth patterns and/or subdivision into a higher value rural residential or development classification.

No matter what your investment goals are, you need to own some land in your investment portfolio. Don't just take our word for it; large institutional investment managers and independent researchers have shown that adding timberland and farmland to an investment portfolio will almost always increase performance. Land is the ultimate hedge against inflation. If you do not have a sizeable percentage of your assets in land you are taking an undue risk that your other investment bets will outstrip inflation. You don't have to wonder with land; land will preserve and improve your capital. If you had bought land ten years ago anywhere in Alabama, you would probably have a great return on your investment if you sold today.

It's a great time to invest in land. I would like to be your land investing advisor. I am confident I can find a land investment for you that will yield above average returns in either the short term or long term. The land market in Alabama has become increasingly nuanced. Land is my business. Myself, along with the entire AlaLandCo team see profitable trends before others and can steer you away from potential pitfalls. At AlaLandCo, we have the largest and most comprehensive land investment team in the state. Our 17 team members are scattered throughout the state, working out of three different offices. We analyze your land investment needs and put together a plan that will meet your goals. Whether you're looking for a short to mid term capital gain or a long term hedge, let's go find your piece of Alabama.

We're professionals and we're ready to assist you.

Our land team professionals understand the many factors that determine land value and we share this knowledge with you before you invest. We can help you with timber values, school districts, surrounding properties, county and state road frontage, interior road and trail systems, wildlife populations, topography, soil types, agricultural value, pasture value, fencing, views, creek and river frontage, ponds and pond sites, existing structures, and large and small tract subdivision potential. We don't miss anything when it comes to sharing our knowledge and expertise about Alabama land and your purchase.

Contact me today and let's set up a time to discuss your land investment goals and how I can help you achieve these goals. I want to show you the Alabama I love and help you realize the greatest satisfaction from your land investment. I look forward to meeting you soon!

Get the full report, Alabama Farm Real Estate: A Comparison of Returns and Values Since 1970. Fill out a brief Buyer Profile and I'll send you the report via email. It only takes a couple of minutes and the information you provide will help me serve you better. Go here to get the report.