CropLife’s Post

GO.FARM investing with purpose: to transform Australian Agriculture

When you look at farmland with both the point of view of the investor and the farmer you end up with a better outcome. Example scenarios: How do we weigh the value of "farmability" vs market price? Can that area be drained? Is there a case to install a bioreactor?

Weiland Farms has helped investors acquire $35MM and 2,800 acres of farmland across north-central Iowa.🌽 That’s given our managing partner Reid Weiland unique insight into what sets a good farmland investment apart from a great one. It’s also helped him identify 3 key factors many investors overlook when sourcing a farmland investment: 1. Historical imagery analysis: There’s a gold mine of information that can be gleaned from reviewing a farm's imagery over the years. Analyzing old aerial or satellite photos can reveal how the farmland reacts to different weather patterns, which is crucial for understanding its resilience and suitability for various crops. 2. Crop diversification: Investing in farmland that can support multiple types of crops can reduce long-term risks. Both in terms of climate change and market volatility in crop prices. 3. Partnering with an experienced professional: Buying the land is the easy part. The key to a successful investment is how well that land is managed afterward. This is where enlisting a farmer-partner who’s vested in your land’s success can make a big difference. If you’re thinking about investing in farmland, read Reid’s article outlining the steps to getting started in farmland investing.➡️ https://lnkd.in/g6THrMue

Thank you Fractal Agriculture for your continued support of Global AgInvesting! We look forward to seeing you at Global AgInvesting New York 2024 on April 15-17. Fractal is a farmland investment platform that brings investors alongside farmers to drive returns with impact at scale. Fractal invests in structured, minority equity investments in fields owned by farmers to provide a unique exposure to top-quality US row crop farmland. Fractal uses this structure to align incentives and drive returns from an investable universe that is significantly larger than traditional investment models. Since farmers benefit from land appreciation and maintain control of their farms, they’re willing to pay a higher cost of capital to investors. Fractal's model also embeds regenerative agriculture impact into the model with 3rd-party validated impact governance and integrated farmer incentives to help investors realize both financial and impact outcomes. Fractal is backed by a team who has built several multi-million acre products in agriculture including the largest registry-verified, farmer-facing soil carbon program. Fractal has secured anchor investors and is currently raising capital for farmland investments and seeking long-term partners including farmland investors, asset managers, and other value-add players. https://hubs.li/Q02qVBV_0 Learn more about Global AgInvesting and register at https://hubs.li/Q02qVV2Z0

Did you know that farmland returns have been positive for the last 31 years?!? 🌾In our newest blog post we explore why farmland investments may make sense in today's market environment🌱 Investing in farmland has been a historical cornerstone for wealth preservation and growth. Amidst the buzz around stocks, real estate, and cryptocurrencies, farmland often remains an overlooked opportunity. However, its potential for solid returns, stability, and resilience has sparked a surge of interest among savvy investors. Here's why it's compelling: 1. Tangible Value: Farmland is a physical asset with intrinsic worth, producing essential resources vital for survival and industries. This inherent value stabilizes against market fluctuations. 2. Diversification: It offers diversification benefits with low correlation to stocks and bonds, making it an excellent hedge against market volatility. 3. Stable Income & Growth: Farmland can generate consistent income (either rental or harvest sales) and historically appreciates, driven by population growth and increased food demand. 4. Inflation Hedge: It has historically served as a reliable hedge against inflation due to its scarcity and relevance in food production. 5. Sustainability: Investing in farmland can aligns with environmental and social goals through responsible farming practices (i.e. organic / regenerative farming). 6. Technological Advancements: Innovations in agriculture enhance productivity and profitability, benefiting farmland investors. 7. Global Food Demand: With the world's population projected to surpass 9 billion by 2050, investing in farmland positions for the growing demand for agricultural products. In conclusion, farmland investment presents a compelling opportunity for investors seeking stability, income, diversification, and long-term growth potential. Read more about farmland investing in our blog by clicking the link in the comments below 👇 #farmland #assetallocation #diversification Graph source: NCREIF Farmland Index report (Q4 2022) / Conservation Resources

In conversations with young producers, there is a common theme around the daunting cost of entering farming. With record amounts of farmland becoming available and prices soaring, we face a critical challenge in keeping agriculture accessible for the next generation. It's essential to consider strategies like private investment, joint ventures, and family offices to bridge the gap. As we navigate this generational shift, the sustainability of Canadian farming hangs in the balance. https://loom.ly/DYMAbIg #CdnAg

https://wix.to/L1q0f31 Have You Considering Investing in A Farm Something we don’t hear about often but is super important: the big changes happening in American farms and how this can be a great chance for us to invest. Here’s the deal: the United States has lost a lot of farms and farmland over the past few years. In fact, there are now fewer than 2 million farms for the first time ever. Farms are getting bigger because smaller ones are disappearing or being combined into larger operations. But here’s an interesting part: more and more investment companies are getting into farming. They’ve been buying up a ton of farmland, and the money they’re putting into it has grown a lot, reaching $16.6 billion recently. This means people are seeing farmland as a good place to put their money. So, why should we care? This change means there’s a big opportunity for us to think about putting some of our investment money into farmland too. It’s not just about owning land; it’s about being part of a growing niche that’s super important for quality food and the environment. Plus, investing in farmland can be a smart move to make your investment portfolio stronger and more diverse. As we see big companies getting into farming, it shows us there’s potential to make money and do some good at the same time. Whether we’re interested in the business side of things, producing quality food, or in helping the environment, there’s something in this for us. I’ll share more details soon on how we can jump into this opportunity. But for now, let’s start thinking about farmland in a new way - not just as fields and crops, but as a chance to grow our investments and make a difference, especially health-wise. Apply For AG/ USDA Financing Best,

Having worked for both a large agribusiness and a large farmer cooperative, can vouch for this as an interesting topic. Farmland, and farming as an investment, is quite interesting for modest but reliable long term returns and diversification. Would be great to see or hear about more accessible ways for retail investors to participate. Not alot of REIT type plays in agriculture vs residential, retail, etc.

In the News ➪ Credit Facility Accelerates Growth of Regenerative Farming In 2023 RSF Social Finance issued a $5 million credit facility, which Mad Capital is using to provide loans to farmers in the Midwest and High Plains. Mad Capital CEO Brandon Welch explains, “This allows them to keep investing cash in their farm while they transition from conventional to regenerative organic, and then when the process is complete, they can restructure the loan to align the payment schedule of the loan with the cash flow of the farm.” Read more from Medium ➪ https://lnkd.in/gN8tQyJn #regenerativeagriculture #regenerativefarming #investing #farmloan #farmfinancing

As the U.S. population continues to grow, there is pressure to produce enough food. In fact, by 2050, farmers will need to churn out 56% more food calories to meet the needs of the world’s population compared to 2009. In turn, investment funds are buying acres of farmland, farmers are investing in technology to boost agriculture productivity, and sourcing on Thomasnet.com® for agriculture-related categories is up. Recently, Reuters reported that between 2008 and Q2 of 2023, the amount of farmland and agricultural real estate owned by investment funds increased by 231%. These investments continue to grow because farmland offers steady returns even in challenging times. This boost is represented on Thomas, where sourcing for farm buildings is up 13% year-over-year.