jmfwisc

It's Confirmed: Farmland Prices Are Correcting

U.S. farmland values have generally been in correction-mode since 3Q08. The USDA data released Aug. 8th, reflects valuations as of 1/1/09; i.e.calendar year 2008, and is quite stale.

More recent monthly index data show that ag land values have continued to contract across the Midwest, Plains and Mountain states. See our Monthly Land Market Pulse: www.farmlandinvestorle....

While we continue to believe that the long-term outlook for agricultural real estate is positive and merits opportunistic purchases, we generally consider U.S. agricultural real estate as fully priced. Based on forecast 2009 farm earnings, we calculate that U.S. farm real estate is selling at 27 times earnings--a record high. Farmland traded at just under 25 times earning in 1981 prior to a six-year slide in prices.

Sincerely,

Mike Fritz
Editor
Farmland Investor Letter

Why Invest in Farmland?

I was curious about statements that have circulated on the Web that assert that Jim Rogers was an investor in the Agcapita fund, since I have written about the restrictions against foreign nationals owning Canadian farmland. (Saskatchewan, which is the primary cropping province, limits purchases by non-Canadians to 10 acres, I recall.) Thus, I corresponded with Rogers last week over this. He says he has severed his consulting relationship with Agcapita, and that he holds no investments in Canadian farmland.

Sincerely,

Mike Fritz
Editor
Farmland Investor Letter





On Jun 11 11:45 AM Farmland Investment wrote:

> The farmland fund that Jim Rogers advises in Canada is Agcapita.
> The minimum investment in its retail fund is $10,000 and is TFSA
> and RRSP eligible.

Land Holdings Review 2008 (Part I)

What was your thesis for selling out of MLP?

Land Holdings Review 2008 (Part I)

What was your thesis for selling out of MLP?