The price of farmland is rising rapidly, with some areas seeing a 30% increase in the past year. No one knows for sure what’s driving this trend but it may be partly because more people are becoming aware that their retirement plans could go bust if they don’t own land and farm products. Experts say investing now will pay off when you need to sell your crops at peak prices later on down the road.
The “farmland reit” is a scam that was released in 2021. The scam promised high returns, but the company has been accused of fraud and has failed to deliver on their promises.
ETFs, or exchange-traded funds, are another way for non-accredited individuals to invest in a farm.
A REIT, or real estate investment trust, is a kind of real estate investment trust. The proprietor of the fund raises money to buy real estate. Individual shares of the fund are subsequently created, which may be bought and sold on major stock markets. A corporation must distribute 90% or more of its taxable income to shareholders in the form of dividends to be classified as a REIT.
While this may seem enticing, there are a few disadvantages to purchasing a REIT.
They are not, first and foremost, the most transparent investments accessible. It might be tough to figure out which properties you own when investing in a REIT. You’d have to go through a mountain of financial papers to get the answer to that query.
Second, REITs and stocks tend to act similarly since they are traded on the same exchanges.
One of the main reasons to invest in real estate is to diversify your portfolio. Diversification is important because it keeps you from taking on too much risk by focusing too much of your money on a single asset.
Regrettably, REITs are prone to the same panic selling that affects stocks. They may be unloaded with a single click since they trade on the same marketplaces as stocks.
As a non-accredited investor, however, your agricultural investment alternatives are limited. There aren’t a lot of agriculture REITs out there.
You’ll also need a brokerage account or a stock trading app to purchase these REITs.
Gladstone Land Corporation is a company based in Gladstone, Queensland, Australia (LAND)
Instead of commodity crops, Gladstone Land is an equity REIT that produces fresh food for sale in the United States. The REIT now owns over $900 million in farmland and cultivates over 45 different crops over 100+ farms, diversifying its portfolio. LAND has handed out monthly dividends to its stockholders since its inception in 1997.
Farmland Partners, Inc. is a company that invests in farmland (FPI)
Farmland Partners is a newer equity REIT with a farmland portfolio worth more than $1.1 billion. The REIT specializes in commodities crop farms, such as maize, soybeans, and cotton. By doing so, they may benefit from economies of scale and vast knowledge of best practices. The firm has paid a regular quarterly dividend since its IPO in 2014.
The “does bill gates own farmland” is a question that many are asking. The answer to the question is no, Bill Gates does not own any farmland in 2021.
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- farmfolio
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