Farm Land Investment

[dummass]

http://www.hardassetsinvestor.com/fe...e-to-stay.html

[flintlock]

Re: Farm Land Investment

Came across this while researching MOO.

http://seekingalpha.com/article/2233...s?source=yahoo

The trigger here is short-term and its name is China. The US is the largest producer and exporter of corn with 40% of world corn production and 60% of world exports. China accounts for both 20% of world corn production and demand as well as the second largest consumer of corn behind the US. This Chinese consumption/production ratio of about one clearly misses the mark on Buffet’s recommended margin of safety.

[doom&gloom]

Re: Farm Land Investment

http://www.hardassetsinvestor.com/fe...e-to-stay.html

nice article. i have been buying actualy dirt myself (in uruguay for country diversity) but have to look into this one!

btw, there are different tax treatments for lease payments vs. "custom" farming, where you pay for inputs and later sell outputs like a biz.

[kbird]

Re: Farm Land Investment

I know somebody who reached out to her to discuss her fund. Here is what he learned:

Target returns: 10 to 17% (2-5% rental yield, 2-3% enhanced yield due to crops in lieu of rent and hedging, 4-8% capital appreciation of land, remainder likely from leverage)

Leverage: 1.5x to 2x

Fees: 2% management and 20% incentive

7 year lockup

80%+ domestic, up to 20% international