There are a few ways to invest in farmland that are pretty direct.
1. Become a physical farmer
2. Invest the financial markets through ETF’s or Agriculture businesses
3. Own farmland that is leased out or ran by a professional farmer
Option #1 – Not really an option for most of us at all, last year I tried to start a garden and it didn’t turn out so good. Growing crops is not easy and it certainly isn’t something you just pick up overnight by reading a book or watching a YouTube video on farming.
Option #2 – Overall these have been pretty bad investments. I like the small micro-cap names, but the larger companies remind me of the large cap miners, just horrible investments over the long term.
Option #3 – For me this is really the only option. Owning land, especially cash flowing land, has historically been a way to great riches. I want to be on title, or at least be part of a business partnership that owns the land.
Finding an opportunity like this wasn’t easy, I spent months speaking with different companies who specialize in these type of transactions.
The main deal killer was that almost all of these companies that help you buy farmland completely take over the management of your money, locking it into a 5 year venture that offers no cash flow! Oh and to add to it, most of these groups want a minimum of $1 million.