Agriculture Investing – An Opportunity to Diversify Globally

Everyone needs a place to live … and everyone needs to eat.

Food is the original wealth. The world’s population is growing … and there are more mouths to feed every day!

Investors don’t have to limit themselves to properties with assets like houses, commercial buildings, or shopping malls.

You can harvest dollars from land that doesn’t have anything to do with tenants … and has everything to do with crops.

Agriculture investing is one of the most enduring and common sense investments there is.

Learn firsthand how money CAN grow on trees from a well-seasoned expert in international agricultural investing.

In this episode of The Real Estate Guys™ show, hear from:

  • Your food-for-thought host, Robert Helms
  • His food-loving co-host, Russell Gray
  • Expert agricultural investor, David Smith

Listen

 


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Digging into agriculture investing

We live in a big world with lots of mouths to feed … that means lots of crops … and lots of ways to profit.

In the past, agriculture investing was a difficult business to get in to on a small scale. If you didn’t have huge capital to buy huge plots of land … you were hugely out of luck.

But in the last several years, we’ve seen lots of folks who have figured out a way to let mom and pop play alongside them.

When it comes to investing in agriculture real estate, the pizza theory comes into play … fitting since we’re focusing on food.

Someone buys a large pizza. They take it to a party, cut it into slices, and sell each slice for a little bit of a markup.

At the end of the day, the person who brought the pizza makes a little bit of profit for their effort … and everybody gets to have a slice of something they might not be able to afford on their own.  

In agriculture, somebody buys a large parcel of farmland and puts all the operations and distribution channels in place.

Then, they divvy up a slice of the deal for a small markup to give many small investors the chance to play in that space. We see this as a great opportunity.

Everyone needs to eat

Crops come in all sizes, shapes, and degrees of durability … not to mention that different regions of the world have different opportunities.

In real estate, we often talk about getting the market right. Buying an investment property in the wrong market can get you into trouble.

But with crops, it’s not exactly the same.

It doesn’t really matter where the hungry mouths are … and it doesn’t matter where the food is grown.

Wherever the best farmland is … that’s where you want to buy. With today’s shipping technologies, you can get the food wherever it needs to go.

Another perk of agricultural investment? It is a staple. It meets a basic human need … just like housing.

Everyone needs a place to live … and everyone needs to eat.

And the population … the number of consumers demanding food … is steadily GROWING.

Crops and cash flow in Paraguay

David Smith is an experienced investor. He started in real estate, and for the last several years, he has been involved in agriculture in Latin America.  

After many years living and working in real estate in Latin America, David knew he needed to diversify.

After some due diligence, David decided to invest in agriculture.

“I was so interested in the business model,” David says. “It was a passive, turnkey investment not subject to the whims of the market. I really liked the security of it.”

David landed in Paraguay … a big farming country a bit off the radar … and invested in oranges.

Why oranges?

David says one of the biggest things that struck him about this particular crop was its durability. It also has a great distribution area.

Paraguay imports about 85 percent of all the citrus products consumed in the country.

“We can’t even meet the demand in Paraguay, let alone try to export yet,” David says.

Today, David is expanding to new segments of citrus fruits like lemons, limes, and sweet limes … ingredients that are important in the local diet.

Paraguay is traditionally a row crop producer … foods like soybeans, wheat, corn, and chia. It imports citrus from Brazil and buys greenhouse vegetables from Argentina.

Looking for ways to provide foods locally that are traditionally imported can open up lucrative niche opportunities in agriculture.

By providing a local alternative to imported foods, David provides a cheaper option for local grocers while creating income for his investors.

Going bigger with greenhouses

Like any investment niche, creative solutions can pay off … literally.

In Paraguay, one of the biggest challenges to growing vegetable is the heat.

“Paraguay gets very hot … and when I say very hot, I’m talking Tucson hot. It can be 120, 130, even 140 degrees in many locations,” David says.

The vegetables grown locally under normal farming conditions don’t grow very well. Their growth is stunted, their colors aren’t as bright, and they don’t taste as good as imported vegetables.

That’s where GREENHOUSES come into play.

By growing high-use … and typically high-priced … vegetables in greenhouses, David and his team can provide a local, tasty, and affordable solution to consumers.

This also provides a unique opportunity for investors. Instead of investing in land, individuals can purchase a greenhouse.

Each greenhouse is approximately 26,000 square feet … that’s a good amount of space for growing some green.

Greenhouses are also a popular investment because of their quick returns. Most investors will receive a return after just one year of making their investment.

“It’s a very stable business that runs 24/7,” David says.

And it’s a business that you don’t have to worry about managing. David and his team employ expert staff members that specialize in growing each crop.

These employees are even more motivated to provide extra levels of care, because they share in the profits.

“We offer them bonuses based upon produce amount, not net profit. In turn, they really put a loving touch into their work,” David says.

Determine if agriculture investment is right for you

Most Americans haven’t invested overseas.

There are a lot of reasons for this … but one of the biggest is not understanding how things operate on the ground in a different country.

That’s why having a local team managing the day-to-day of your investment is so powerful … especially in a niche like agriculture.

Just like any other investment opportunity, it’s important to do your due diligence.

David and his team help investors get a feel for agriculture by providing informative tours of their operation in Paraguay … and he also prepared a new, informative special report Citrus Fruits in Paraguay Investments that Grow Naturally.

Whether or not this particular opportunity is right for you, expanding your thinking to a bigger picture of real estate than just houses and hotels is important … and can yield lucrative results!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!