Heres a thought...
I just had a very thought provoking exercise.
I live in Iowa. I listened to a Zach Lahn (candidate for governor, not a fan but nonetheless) interview where he was saying 25% of Iowa farmland is owned by foreign (to Iowa) imvestors. This prompted me to wonder why?
I dug into what Iowa farmland produces from a financial perspective. It generally, over time appreciates in value about 7% per year and produces about 3% per year in rent (income). So on a million dolllar piece of Iowa farm land. Youd expect the value be 1,070,000 the next year, and it would have paid you about 30,000 in income.
Obviously I dont have the capital to buy Iowa farm land. So I went looking for an ETF that kinda matches that profile. And wouldnt you know it. The closest match is SCHD.
SCHD produces 3.3% per year in dividends, and appreciates about 7% or more per year.
Trades at 35 bucks per share.
So as many of us can't go out and buy 80 acres of Iowa farmland, we can go out and buy 1 square foot at a time.