Buying Farmland As An Investment. Thoughts?


#1

I am successful Enterpreneur and have recently sold my business…

I have been recently interested in protecting my assets no matter what and am interested in buying farmland as an investment. Thoughts?


Investing In Farmland 2018. How Can I Do It?
#2

I’m not a financial advisor or anything but I have been very interested in doing this myself. I do not have a lot of money to play around with, but I wanted to look at he different funds out there to get the best deal. This is a few things I’ve picked up…

1. Farmland Is A Safe Investment (At The Right Price)
Farmland is a great investment and it has a very low correlation with the stock market. The problem is that farmland has been increasingly in value significantly in price in last 40 years…

The key thing is if you are buying at the right price. You need to know it’s good value!

I found that its very hard to value farmland without professional help. You can look at prices relative to yield (similar to a stock’s pe ratio), but I found it really depends on the area. You need professional local knowledge…

The price of getting it wrong is high. In picture, you would be screwed if you bought farmland in 1978. Would take about 25 years to return to the same price!

If you can work out that farmland is a good price, or is slightly undervalued, I think it’s a great call - especially for people who think our entire global system is on brink of collapse!

You don’t avoid this problem by buying Farmland REITs either. Farmland REIT’s in the US are all sitting on serious debt. If their farmland properties are seriously over-valued, they will be in serious trouble. The debts will become too big and the banks will write them off…

Farmland is a great investment for reasons we have elaborated on here:

In my opinion, the issue is knowing if the land is over/undervalued like you would in stocks. No sensible investor would ever overpay for a stock - no matter how good it was…

If you find anything any interesting funds, or stocks in the farmland space post them. This is something I am very interested in!