Investing In Agriculture
August 9, 2019
We’ve turned our blog into a learning resource for those interested in investing in agriculture. This guide is a roundup of our best articles on each subject.
Farmland REITs – Higher liquidity at the expense of potentially higher returns.
Farmland ETFs – Look at the possible pitfalls of Exchange Traded Funds.
Agriculture Crowdfunding – A new way to invest in agriculture.
Opportunity Zones – Learn how opportunity zone funds can impact certain ag investments.
Tax Benefits – Conversion Trusts, Depreciation and Property Tax.
Are you considering an investment in agriculture or farming? You’re not alone. There are many reasons why an investment in agriculture makes sense. That said, it’s worth taking the time to consider the entire spectrum of potential investment vehicles within the ag industry. Owning and operating your own farm requires a completely different commitment than entering the market as a passive investor.
Whether you’re new to the ag world or an experienced investor view this guide as a resource. This guide was created to make sure you know all of your options before choosing the appropriate agriculture investment for your portfolio.
FarmFundr is an agriculture crowdfunding platform. We work with our investors to offer high return farm investment properties. This guide is provided for educational purposes and is not investment advice.
Farmland isn’t the only way to invest in agriculture (we cover REITs and ETFs further down) but it is the original. Investing in agriculture used to mean literally becoming a farmer or renting land to a farmer. I’ll spare you the agricultural history lesson. Just know that in 2019 and beyond there are more options available to those interested in the ag industry.
First consider why you might invest in farmland specifically.
Why Farmland – Farm production must increase by 70% by 2050.
Passive Farm Income – Average returns of 12% since the great depression.
Unique Investments – In a world of Uber, Facebook and Crypto-currencies it doesn’t get more unique than almonds, pistachios and row crops.
Is Farmland Recession Proof? – Consider what macroeconomic turmoil would do to your portfolio.
For many, farming is a way of life just as much as it’s a business to operate and grow. Traditional ag investment vehicles kept the farmer and investor at arms length. That no longer has to be the case.
The alignment of incentives between investors and farmers may be the most beneficial innovation to come from crowdfunding. Financial incentives sure, but more than that crowdfunding allows investors to see and experience the direct production resulting from their investment.
How to Make Money in Agriculture – Consider all of your options. There’s more to the industry that REITs and ETFs or even doing the farming yourself.
Current Investment Opportunities
