The high commodity prices have helped encourage investors with no connection to farmland, such as Steve Diggle, to compete for their very own acreage in the heartland.
“We paid about $3.3 million for our 650 acres in southeast Illinois in 2009,” Diggle said.
Diggle is the CEO of Vulpes Investment Management, which is based in Singapore. The firm manages a quarter of a billion dollars of investor money, about 15 percent of which is in farmland.
What makes a good piece of farmland? Why can it cost so much? The answer, as Audsley said, is mostly underfoot — the soil.
The Midwest has some of the world’s most productive soil. And that has investors flocking to buy.