Investing In Farmland: Appreciation, Income & Inflation Protection | Edward Hargroves
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- čas přidán 15. 06. 2024
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[Original recording date: 6.2.21] Farmland is one of the most attractive asset classes out there in today’s environment.
Supply of productive acreage is actually shrinking worldwide, pulling land prices higher over time. And demand for agricultural commodities is robust and growing, heavily insulating farm income from rising inflation.
And new technologies are bringing economies of scale that both reduce cost and waste while enabling more sustainable and eco-friendly food production practices to be adopted affordably.
So, what are the key factors and trends you need to know when investing in farmland? And can you do so without having to buy an actual farm and become a farmer yourself?
We invited farmland expert Edward Hargroves of Goldcrest Farm Trust to answer these very questions at the Wealthion conference held a few months ago.
Don’t worry if you missed the conference… as we’re making our interview with Ed’s available to you right here, right now...
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I come from a long line of farmers all the way back to Ireland. Food production via farming is a necessity. Farming, farm land and commodities are out of favor - this is excellent. Farming is very hard work and isn't "sexy" like cryptocurrencies and SPACs etc. But in the long run farming will be around long after these "trendy" speculative investments are gone! Mr. Hargroves makes some excellent points and these are largely aligned with those of Jim Rogers with respect to farmland as a possible investment. One can buy a nice farm with a home on it and lease the land out or just don't produce anything on it until commodity prices "go through the roof"! Unlike other investments, the land is not going to deteriorate if it isn't tilled. I live in Michigan - The Great Lakes State. We have the largest fresh water supply in the world and one can drill a well with plenty of supply! I like the idea of owning a real farm instead of a REIT or security class holding farmland. It's a long term investment. 🙂👍
Rich people bidding up the price of farmland makes it unaffordable for young farmers. I own my own farm (in California) but many of my younger friends who are beginning farmers are priced out of the market for farmland because of the price being driven up by farmland investment trusts and the like. Adam likes to say that he looks out for the little guy; the little rich guy? This is not looking out for the needs of small-scale farmers. In Sweden and Denmark only an individual who is a legitimate farmer is allowed to purchase farmland. We need that here, too.
Mike: I have interviewed sustainable small-farm/permaculture pioneers like Joel Salatin, Singing Frogs Farms & Toby Heminways many times over the past decade. Bringing in the perspective from someone elsewhere on the spectrum does not mean I'm not "looking out for the little guy"
Adam, maybe you should present both sides together?
I appreciate your effort, but this just came across as "buy farmland = get rich = screw the farmer". (But that is shooting yourself in the foot. You can't eat currency...)
I'm sure that's not what you meant.
Maybe try aiming for "a better way" rather than just "another way to make currency".
If you invest in good (and by that I mean regenerative, like the ones you mentioned) you make currency, restore the environment and secure your food supply. Anything else is just the destructive capitalism that most of your guests rail against...
If you've watched wealthion's other videos, you should have learned by now that the price of everything - houses, cars, equities, and yes, even farmland, are going up as a result of fed monetary policy.
Place the blame where it's due, instead of blaming "rich people", whatever that means.
Those if us who have worked hard and saved capital and want to preserve its value in the face of unprecedented money printing, can and should be partnering with farmers, by buying land, and letting them farm it.
We don't need more bad laws from the people that bring you the fed, and we shouldn't be blaming people who see value in farmland.
Yes young farmers can't buy 100s of acres off the bat, and young people who graduate college can't afford a house off the bat, either.
Start where you are and work to get where you want to be.
Well, we also need a moratorium on foreign buyers to farmland. Unfortunately reality is not the same as the real world. WalMart and Amazon and Home Depot and Lowe’s and Kroger, Blackrock, etc., have wiped out the little guy in every sector. I am not being crass because I grew up in Palouse country but I think that you have to find a way to live with it.
Investing is like planting a tree, the best time to start was 20 years ago, the second best day is today 🔥. I hope you will all reach your financial goals 😘
Investors are the reason family farms become houses. When the investors want their cash, they sell to highest payor. That leaves the average farmer out. How does this help keep food on the table?
Great show!
They have no business buying farmland if they have no intentions of farming. They're making it near impossible for young guys who actually want to farm to get started.
The one thing your guest didn't say - the average age of US farmers is over 60 years. This I'd because the cost of land is too high for young people to get in to farming. Therefore the old blokes can't get out...!
If you want to ruin your food supply, speculate on farm land. If you want to guarantee your food supply, invest in great farmers (like Joel Salatin).
Corporate farms don't have your best interests (read health) at heart...
Exactly, i watch Salatins videos and i was impressed , a lot of health benefits raising animals outdoors.
My question is... What about water and the water tables which are diminishing at a fairly rapid pace. What happens if the government through eminent domain purchase your land if it does happen to have water. By 2030 I feel we are going to have a major problem with drought and depletion of soil nutrients. What happens if in the foreseeable future your crops are not safe from organized groups stealing your crops. We cant look at it as we have in the recent past
Thank you
You forgot the US gov telling farmers to burn their fields...
It is scary! MOPS.
THE FED HAS NO PUMP FOR MOPS! Mead, Oroville, Powell, and Shasta. No liquidity. Hydro Kaput!
Lights out in Vegas?
having a great mentor will always bring winning mindset, Richard is genius and has made me understand more things in crypto investment.
In this case, the NCREIF farmland index began in 1991. So it’s quite young. Very young when compared to other asset classes. And the index was formed when land prices were at rock bottom. An advantage when comparing “growth” and “performance” against older indexes.
In 1980, that average cropland real estate value per acre-including prement crops and row crops, but excluding grazing pasture-was $1,800. By 1991 it had fallen to $1,200, so about a 40% decline. Then we had a recovery. By 2006, farmland was selling at $2,300 per acre, and then it peaked in 2014 at about $4,019 per acre. Farmland hasn’t done much since 2014. In 2020 it sold for $4,100 an acre.
There was negative action before the index began in 1991. After that, the price does climb-but there hasn’t been much growth since 2014.
northland/nz: north of auckland [auckland is nzs biggest city], in northland farms have doubled in price in just the past yr alone. subtropical climate, also great for horticulture/organic etc... houses may go up and then come back down, but i think farms retain their next leg up in appreciation due to the genuine shortage of quality farmland[water onsite] in a growing world.
Investors in farmland is part of the problem with the funk we find ourselves in. Don't expect me to be happy investors are screwing up farming for a buck.
Tell Bill gates
Adam- Would be great if you could get on the Farm Together Team for a talk. They are more targeted toward smaller investors and would be very useful.
Great suggestion. Will reach out to them
great farms in new zealand -no h2o shortage!, your usa farms seem to be very dry and desert looking. thanks for focusing on farmland, basically a million reasons to buy, not to mention the best SHTF insurance out there... nothing beats being surrounded by acres and acres of peaceful scenic lush green acreage + trees, animals and birdlife aplenty. quality of life.
There was another guest they had on that invested in large amounts of farmland and increases value. Buy in was $50k and had to be accredited investor. Hopefully not the same case here (we'll see just started listening)
@@charronfamilyconnect hate when they don’t share … just trying to drum up business for themselves.
Plenty of water subsurface even with dug wells . Del monte has hundreds of acres . Grows melons and tomatoes. If someone is truly interested in farmland I’d partner for a piece in this neighborhood.
Cowboys 👍
Looked at your farms but your not a public company.
8th
Outlaw foreign and corporate ownership of our farmland or pay the carbon taxes dead ahead.
No, investing in farmland is nothing but taxes, more work, and more problems.
Ignore the bot.
yes lot of work figuring out how much taxes i have to pay from the farms i bought 10 years ago!
nn
Adam
It seems, from comments made, the speaker believes in AGW through CO2.
Which is strange, as CO2 is Plant Food - No CO2 = No Plants = world Extinction.
Farmers want, need, desire more CO2 (within reason but more than currently 412 ppm) to grow more food on less land for all the extra people.
550 million years history of climate (CO2 and Temp) shows no correlation between CO2 and Temp. No correlation = NO CAUSATION.
Having heard his comments and extrapolated into the speakers understanding of CC I lost interest.
.
"Institutionalized Farmland" his words not mine; smells like communism too me.
he lost me me on global warming! this is a pc channel