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Farmland Investment

Farmland Investment
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  • How To Invest For The Global Food Crisis [View article]
    There are ways to invest in farmland directly (see below). Note that all the listed options own and operate farmland, so have a different risk profile from the private vehicles which appear to be passive land holders.

    Listed:
    Cresud - South America
    Black Earth - Russia
    Landkom - Ukraine

    Private LPs:
    Agrifirma - Brazil
    Agcapita - Canada
    Chess Partners - US
    Hancock - US
    UBS Agrivest - US
    Aug 3, 2012. 11:52 AM | 1 Like Like |Link to Comment
  • When Looking At Agriculture, Don't Overlook Direct Investment In Farmland [View article]
    Some investment funds that hold farmland (freehold and leasehold - lease holders are indicated):

    Agrifirma (Brazil - Jim Rogers)
    Chess Partners (US)
    Hancock (US)
    Landkom (Ukraine, I think they only lease farmland)
    Black Earth (Russia, I think they only lease farmland)
    Agcapita (Canada)
    Emergent (Africa)
    Ceres (US)
    Land Commodities (Europe)
    Leopard Capital (Eastern Europe?)
    Oct 25, 2011. 12:45 AM | Likes Like |Link to Comment
  • Jeremy Grantham's Q2 Letter: Outlining What Investors Should Buy [View article]
    Canadian fund that does own farmland - Agcapita
    Aug 10, 2011. 11:57 PM | Likes Like |Link to Comment
  • Jim Rogers: Stop Buying Gold; Buy Agriculture Stocks [View article]
    Some direct farmland investment vehicles:
    Agrifirma - Brazil
    Agcapita - Canada
    Chess partners - US
    Landkom - Ukraine
    Hancock - US
    Aug 6, 2011. 12:19 PM | 2 Likes Like |Link to Comment
  • Canadian Farmland: A Worthwhile Investment? [View article]
    More info on the Canadian farmland investment premise from Agcapita Partners LP:

    www.farmlandinvestment...

    Zero till farming allows credits to be claimed in both Alberta and Saskatchewan currently.
    Aug 10, 2009. 12:21 AM | Likes Like |Link to Comment
  • A Complete Guide to Agriculture ETFs [View article]
    The article didn't mention the direct farmland investment fund Jim Rogers advises:

    Agcapita Partners

    Agcapita focuses on Canadian farmland investment.
    Jun 25, 2009. 12:07 PM | 4 Likes Like |Link to Comment
  • Why Invest in Farmland? [View article]
    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.
    Jun 11, 2009. 11:45 AM | 4 Likes Like |Link to Comment
  • Gold as an Inflation Hedge [View article]
    On the issue of TIPs there is a quote from Marc Faber that is both entertaining and insightful: "Never ask the barber if you need a haircut. Never ask the realtor if the house you are considering buying is a bargain at the price offered. And never ask the government to calculate the rate of inflation when it can save millions of dollars in cost-of-living adjustments."

    An excellent inflation hedge not mentioned in the article - direct farmland investments. Farmland has a very high positive correlation to inflation like gold, but generates consistent income from rents - so much so that it is often described a "gold with yield". Jim Rogers is a big advocate of farmland investments for two key reason - unimpaired fundamentals in the ag space (think “food, feed, fuel”) and returns that have a high positive correlation to inflation. Rogers is on the board of Agcapita, a farmland fund focusing on Canada.
    Jun 7, 2009. 05:21 PM | 2 Likes Like |Link to Comment
  • Inflation Hedging: How to Protect Your Portfolio [View article]
    Another excellent inflation hedge - direct farmland investments. Jim Rogers is a big advocate of agriculture and farmland investments for two key reason - unimpaired fundamentals in the ag space (think “food, feed, fuel”) and returns that have a high positive correlation to inflation. Rogers is on the board of two farmland funds:

    Agcapita (focusing on Canada)

    Agrifirma (focusing on Brazil)
    Jun 7, 2009. 05:10 PM | Likes Like |Link to Comment
  • Commodities for Income Investors [View article]
    Jim Rogers is on the advisory board of a direct farmland investment partnership in Canada - Agcapita. Farmland investments have a high positive correlation to inflation - farmland is often described as "gold with yield". According to Agcapita Partners data, during the 1970's farmland in western Canada went up over 500% in nominal terms.
    May 31, 2009. 11:25 AM | 1 Like Like |Link to Comment
  • Which Asset Classes Are the Best Inflation Hedges? [View article]
    Another excellent inflation hedge - farmland. Farmland has a high positive correlation to inflation - it is often described as "gold with yield". According to Agcapita Partners data, during the 1970's farmland in western Canada went up over 500% in nominal terms.
    May 31, 2009. 11:19 AM | Likes Like |Link to Comment
  • Jim Rogers: U.S. About to Have a Currency Crisis [View article]
    For those interested Jim is involved with two farmland investment funds:

    Agcapita (Canada)

    and

    Agrifirma (Brazil)

    The two have slightly different approaches. Both of course provide exposure to the global ag story but have different micro premises. Agcapita buys land in western Canada, primarily Saskatchewan, to take advantage of the large price differential which has developed between Sask and its neighboring provinces (up to 300% difference) and western Canada and the rest of the world, due to ownership restrictions that have largely been repealed. Agrifirma buys low cost arable land but non-producing land and then does the work to bring it in to production.
    May 14, 2009. 11:12 AM | 5 Likes Like |Link to Comment
  • Debating Taleb, And Advice-Givers in General [View article]
    If you want information on the process that led Jim Rogers to recommend investing in Canadian farmland then please see the materials located on the website of the fund on whose advisory board he sits:

    Agcapita Farmland Investment Partnership farmlandinvestmentpart...

    If you don't have the time to go through the detailed material, here it is in a nutshell:

    1. Inflation Hedging - Farmland has been described as “gold with yield” for its strong inflation hedging qualities combined with stable income streams.
    2. Competitive Returns - The returns to direct investments in farmland have exceeded stock and bond returns over the last 17, 10 and 5 years (NCREIF US farmland index, Lehman US Bond index).
    3. Lower Risk - Direct farmland investment returns have been much less volatile than investments in stocks. Over the long term, farmland may be a convenient way, less volatile way to participate in higher agricultural commodity prices.
    4. Real Asset – Farmland is a tangible, real asset with a underlying productive value.

    Canadian Farmland

    1. Canadian farmland is high quality: Canada is the third largest wheat exporter in the world and in aggregate one of the largest agricultural producers in the world. The three western Canadian provinces alone have approximately 135 million acres of farmland and produce approximately 20 million tons of wheat a year.
    2. Canadian farmland is low cost: Agcapita believes Saskatchewan farmland in particular is an undervalued asset. With an average price of approximately $450 per acre, Saskatchewan farmland is some of the least expensive in the world. The prices in Alberta are almost 3 times higher than Saskatchewan at an average of approximately $1,200. Overall, Canadian farmland is one of the lowest priced in the OECD and is even price/yield competitive with emerging markets.
    3. Canada has world class farming infrastructure: Unlike investing in farmland in emerging markets such as Argentina, Brazil or Russia, Canadian farmland is supported by first world storage, processing, and shipping infrastructure.
    4. Canada has low political risk: Unlike emerging markets, Canada lacks significant political risk. Canadian farmland owners benefit from a transparent and enforceable land titles system with no material risk of de jure or, worse yet, de facto expropriation.

    As an aside, I would argue that mainstream financial media is uninterested in discussions about process because they are time consuming and require more thought - superficial analysis is less challenging and quicker.
    May 12, 2009. 11:13 AM | 2 Likes Like |Link to Comment
  • Five Reasons to Invest in Agriculture [View article]
    DBA is a useful starting point but there are some interesting alternatives to listed equity based agriculture investments. Direct investments in farmland demonstrate annual returns that exceed equities but with significantly less risk/volatility. In addition, farmland is arguably one of the best inflation hedges available - so much so that farmland has been described as "gold with yield". Jim Rogers views agriculture fundamentals as the best of all asset classes currently. A belief he holds so strongly that he has joined the advisory boards of two direct farmland investment funds:

    Agcapita (Canada - some of the least expensive farmland in the world on a $/bu yield basis, then factor in first world infrastructure and low political risk)

    and

    Agrifirma (Brazil - bringing unfarmed land into production on a large scale)
    Mar 29, 2009. 04:26 PM | 2 Likes Like |Link to Comment
  • Farmland Prices from Around the World Show Relative Resilience [View article]
    Jim Rogers agrees with the premise that the fundamentals in agriculture and in particular farmland are the best of most assets classes currently. The sound underlying fundamentals are one of the factor insulating farmland values from the recent turmoil in the financial markets - that and a history of being an excellent inflation hedge. He is involved with two direct farmland investment funds:

    Agcapita (Canada)

    and

    Agrifirma (Brazil)
    Mar 25, 2009. 11:15 AM | 1 Like Like |Link to Comment
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