AgVest Advisors’ Post

Institutions looking to invest in farmland should consider a direct investment model vs a fund. There is a misconception in the farmland space that direct investment models will take too much internal time to manage. If you have the right partner to build out your portfolio, there is minimal difference in internal staff needed. If investors take the time to compare return profiles, they will see the potential for greater returns through direct investment due to the much higher fees in the fund model and flexibility on the sale of the portfolio on the back end.

Why invest in farmland? 🌽   LandFund Partners has been helping HNWs, RIAs, and Endowments/Foundations invest in farmland since 2013. I recently spoke at an event hosted by one of our long-term RIA partners. Many of their clients were invested with us via Charles Schwab or Fidelity Investments going into 2022, which was a difficult year for both equities and bonds – basically the 60/40 portfolio didn’t work.   In order to illustrate the benefits of owning farmland, we pulled together the simple table below comparing how a hypothetical investment portfolio would have fared since January 2021 with and without a farmland allocation. We used the NCREIF Annual Cropland index as a proxy for U.S. row crop farmland returns. As you can see, the benefits of diversifying with a historically non-correlated asset were clear. The farmland returns data goes back to the 1990s. What other time periods would you be interested in seeing?   (This is not investment advice and is provided for informational purposes only. Past performance is not indicative of future results.)

Exploring the Benefits of Direct Farmland Investment vs. Fund Structures Investors considering farmland have two primary routes: direct investment or through a fund. While both have their merits, direct investing offers distinct advantages that can significantly impact overall returns. Lower Investment Costs & Higher Returns: Funds typically have higher investment costs due to management fees on committed capital from the start. This can erode overall returns. In contrast, direct investors avoid these fees by utilizing a 'pay for performance' fee structure, potentially boosting their returns. Patience Leads to Better Deals: Direct investors can afford to be patient, allowing them to find better deals. Fund managers, on the other hand, are pressured to deploy capital quickly because investors are already paying fees. This urgency can lead to settling for larger, less optimal deals. Flexibility in Timing of Portfolio Sales: Direct investments offer flexibility in the timing of asset sales, allowing investors to capitalize on market cycles. Funds, however, must sell when their term ends, which may coincide with unfavorable market conditions, potentially reducing returns. Please reach out to us or visit AgVestAdvisors.com to learn more. #farmland #farmlandinvestment #agricultural #land #investment #risk #portfolio #diversifiedportfolio #duedilligence #investing #farm #realestate #rowcrop #crops #asset #harvest #sustainability #tenants #agriculture #investments #assetmanagement #agricultureandfarming

🌾Explore Farmland Investing with Halderman Farm Management! Are you seeking to venture into the world of farmland investing? Look no further! At Halderman Farm Management, we specialize in tailoring farm investment opportunities to match your unique desires and goals. At Halderman Farm Management, we take immense pride in our meticulous approach to analyzing, acquiring, and enhancing farm investments. Let's embark on this journey together and cultivate success in farmland investing! #FarmlandInvesting #FarmManagement #InvestmentOpportunity

Today, AcreTrader Financial, LLC reached a significant milestone celebrating one year as a registered Broker-Dealer. This achievement was a major undertaking, enabling us to form relationships with prominent ag-focused entities such as CMC Citrus, DST Farmland, Englehardt Ag Services, FBN Finance, Peoples Company Capital Markets, Strongwater Viticultural Investments, and Trinity Agri Management. This, in turn, allowed us to provide investors access to distinctive investment opportunities. As a Broker-Dealer, we expanded our offerings to include investment structures new to our Platform such as Farm Options, Delaware Statutory Trusts (DSTs), and properties with sustainable ag practices, in addition to traditional row crop and permanent crop investments. Want to learn more? Visit https:https://hubs.ly/Q02kf6pW0. And if you see a member of our team today, be sure and issue a hearty congratulations - they earned it! #FarmlandInvesting #Farmland #AlternativeAssets Alternative investments are considered speculative, involve a high degree of risk, including complete loss of principal and are not suitable for all investors. Investments are illiquid, not listed on an exchange, and not a short-term investment.

Did you know farmland is one of the best-performing sectors in real estate? With a compound annualized growth rate of 4.6% and average annual returns of 12.8%, it's a smart investment choice. 📈 Tap the link in our bio to explore the benefits of investing in farmland in our latest blog! https://lnkd.in/gFb-TFE7 #FarmlandInvestment #RealEstateGems #HighReturns #InvestmentStrategy #FinancialSuccess #RedpillKapital

Closed-end farmland buy-and-lease strategies - why are they close to going the way of the Dodo? Agri Investor's database shows the strategy accounted for $6 billion of capital raised by closed-end funds between 2012 and 2017. Between 2018 and 2023, this dropped to $402 million. Where has all the buy-and-lease capital gone? We've solved part of this riddle, but there'll be a lot more to unpack in the coming weeks. Take a look at our initial analysis here: https://lnkd.in/eH8_f_ah #privateequity #farmland

Farmland isn’t typically seen as a high-income profession, but it’s becoming a sought-after store of wealth, especially during tough economic times. After the financial crisis and the pandemic, investment in farmland surged. Asset managers view it as an inflation hedge that diversifies portfolios and offers steady returns. 🌱💰 Although still a niche asset class, institutional ownership of US farmland has been growing rapidly, doubling to $16.6bn in just three years. US, Australian, and Brazilian farmlands have outperformed recently, with global gains averaging about 10% annually over the past two decades. 📈🌍 However, the stability of farmland investments could be challenged by the changing climate. 🌍🌦️ #Investment #Farmland #InflationHedge #WealthManagement #ClimateChange #Agriculture Source: Financial Times

The 5 biggest reasons to start investing in farmland right now. 🔥

NCP's Interview series with Russell Lazaruk is back with a discussion on farmland as a unique asset class with its own attributes. Farmland is often a core holding that is passed down through generations. In this interview with Kevin Frankowski & Jordan Lehmann, MA, CFRE from Ox + Plow Agriculture Inc., we explore farmland as an investment. We look at the underlying drivers of return and what the risks are. #investmentmanagement #wealthmanagement #familyoffice #agriculture #farmlandasanasset #assetallocation #hardassets