FARM RETURNS: They Measure Up to Returns To Other Investments

Abstract

Join most any group of farmers at the local cafes for morning coffee and you 'll hear complaints that, "Farm prices are too low, and farm inputs cost too much." "Farmer returns just don't measure up to returns associated with other investments like stocks and bonds," they will often argue. But this just isn't the case. The record shows (when both good times and bad times are considered) that returns from current income and capital gains for farm investment match or exceed that on many nonfarm investments. And the riskiness or fluctuation in returns in farming is actually less than it is for many nonfarm investments.