Agriculture and Farmland
Money growing on trees. It’s fun to imagine … But what if you really could
grow money with the power of plants?
In our view, agriculture land and agricultural commodity investments are one of the hottest alternative real estate investments out there right now … For good reason.
Unlike other markets, agriculture is global. Think about it … Besides basic housing, what is another commodity that everyone needs? Food!
Every time you step into a grocery store or a farmer’s and make a purchase, you send money to agriculture land investors and farm owners.
And agricultural profits aren’t just limited to edible commodities. Think your hardwood floors … A valuable source of profits for farmers of teak and other prized woods.
So why not get in on the profits yourself?
Demand for agricultural products is consistent … And growing steadily as global populations increase. The world population is expected to grow from 7.4 billion to 9.7 billion by 2050. More people = more food = more money in the pockets of food producers.
And with modern technology, agricultural products can be distributed in markets across the world. World-wide demand provides stability.
The Food and Agriculture Organization (FAO) forecasts that a 60% expansion in food production is needed by 2050. This increase in demand is occurring when 80% of arable land is already in use and current arable land degradation is occurring at a pace 100x greater than the rate of formation and recovery.
In the United States, annual returns on farmland have averaged over 11% for the past 25 years. But agricultural investment opportunities are not limited to the United States … They are available across the world, providing you a way to extensively diversify your portfolio.
Agricultural investments can act as a buffer to market volatility. In 2008, farmland was one of the few assets that ended the year up despite the sobering market crash. One of the best assets to own during times of crisis, and especially during a period of growing inflation, is farmland.
When investigating agricultural opportunities, consider …
- Global markets > local markets. When investing in a real asset like agriculture, global markets are more important than local markets. Investigate global demand for various agricultural products before checking out local specifics.
- Aim for sustainability. Agriculture is often considered a steady investment … But only when crops can be sustained for generations without harming the land they grow on. You want investments that will be consistent for the long term.
- Consider the land. Based on your chosen crop, consider the natural climate, soil, and weather conditions that will be most conducive to profitability.
- Take a look at local factors. Although agriculture meets a global demand, investors need to consider local factors such as labor supply, land ownership rights, and tax climate.
Sound like a lot to figure out? As with any investment, it’s essential investors build a team of experts to manage and grow their investment.
Finding the right farmers and on-site management team is a crucial piece of a successful agricultural investing … And why syndicated investments can be a great option. Economies of scale attract quality farming teams and create greater returns. Passive investors buy a parcel of land without having to worry about hands-on, day-to-day operations.
Agricultural investments can be a great addition to your investment portfolio. Just be sure to plan how your chosen commodity fits into your portfolio. Some crops, like hardwood trees, are a great legacy investment, while other crops can provide more immediate cash flow.
Investing in agriculture can mean wildly different things … From coffee and cacao beans, to teak trees, to coconuts.
Below is a list of helpful resources. Do your homework … And then considering giving this “green” investment a shot!
- Growing Sweet Profits with Offshore Agricultural Investing
- Real Growth, Resiliency, and Diversification through Agriculture
- Sweet Returns with Low-Impact Tenants
- Agriculture Investing – An Opportunity to Diversify Globally
- Farming for Profits with Agricultural Investing
- Sweet Returns with Low-Impact Tenants
- Farming for Profits Part 1 – Investing in Essential Resources
- Farming for Profits Part 2 – Cash Flow vs. Legacy Investing
- Delicious Profits with International Agriculture
Reports & Articles
- Boots-on-the-Ground Market Insights: Agriculture
- Planting Your Flag in Panama
- Precious Teakwood: What You Need to Know
- Why the Wealthiest 1% Invest in Agriculture
Market Field Trips & Property Tours
- Coming Soon!
- Precious Timber – Timber, Coffee, Coconuts, and Papaya
- ECI Development/Teak Hardwoods – Panama Timber