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With the uncertainty in the economy and the volatility in regular investments like stocks and bonds, investments in commodities and real estate will force farm land prices up in 2012. Compared to only a year ago, farming properties have grown in demand pushing the prices up over 20% in many areas. As wise real estate investors always say, property is a good that cannot be reproduced. Once it is gone there will be no more available to purchase; Farm land is no exception to this rule.
Throughout 2011, commodities such as cattle, feeder cattle and pork bellies rose anywhere from fifteen to twenty percent. To be able to produce these commodities you must have farm land and property to grow hay and corn to feed the livestock. These steep rising in prices has had the same effect on farm land which has also been going straight up. Experts believe this trend to continue in the future.
Cnn.com has released a short video detailing a group of investors that has been hedging their bets on the prices of vacant real estate and tileable acres. One investor explains the prices have risen over twenty percent in Midwest region including Michigan Indiana and Illinois.
If you are interested in investing in farm land then you may need help with financing. Buying farming property requires a special investor that understands the needs and requirements of this specialized loan. Most banks do not offer this type of financing because it is not a conforming product that Fannie Mae or Freddie Mac will purchase. For more information on Farm Land Loans you should speak with a mortgage company that offers this type of financing.