Building wealth through ownership of farmland is normally a long-term investment; the same as owning other real estate or investing in the stock market. Total returns for owning farmland are a combination of annual cash profits and appreciation in value. Farmland could normally be expected to have a 4%-6% cash return on investment annually over time. Appreciations in value over the long term will vary from region to region in addition to the production capabilities of the land. For example, the following table shows the average annual appreciation in value for Illinois farmland for the period 1921-2018.
