Aug

22

 Michael Burry, of "The Big Short" fame, mentioned farmland a while back as an (the only?) investment he saw having value.

It appears now that there are companies that are developing and possibly planning the introduction of the "first" farmland REITs. One could imagine that this might have an appeal to the general public looking for an alternative to gold and other perceived "safe havens". Buying a piece of the farm…

Here is one company that has been mentioned as being interested in introducing farmland REITs. Those with experience in this area can critique if such a thing makes sense or not…or whether watching re-runs of "Green Acres" is a better bet for city slickers.

"Our goal is to develop an agricultural and farmland investment vehicle that provides unique value to our shareholders. We seek to achieve this goal by owning farmland that is leased to independent farmers that mostly produce row crops. We own six farms in California, each of which is leased to farmers producing fruits and vegetables."

Stefan Jovanovich comments: 

European syndicates wanting to get into the "beef" boom paid for the land and the Herefords and other stock that were brought in to Kansas to improve the breed of the wild Texas cattle that Mr. Hammond, Swift and Armour were slaughtering to great profit. Somehow, the profits were never realized, even though a number of enterprising cowboys got their start with their own spreads by liberating the "half-breeds" that wandered off the Europeans' land. The author of one study described the experience of the Dutch investors as a "long slow ride to nowhere".


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