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Momentum Builds for Farmland Investment

by | February 10, 2021

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Strengthening export dynamics, as well as drought, have put a serious dent in U.S. grain stockpiles and sent commodities prices climbing over the last several months.  In fact, prices for the key farm commodities of corn, soybeans and wheat have recently spiked to levels not seen in more than six years! Increased crop prices means farmers can be more profitable given the same input costs. In turn, this means that higher rental rates are more sustainable for these operators and consequently farmland is bolstered as one of the most attractive targets for investment capital.

Recently, there have been many news headlines to the effect of “Bill Gates is now the largest private owner of U.S. farmland.” Many were shocked to learn that the technology titan, and third richest man in the world, has acquired over 200,000 acres of U.S. farmland. Th

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e juxtaposition of Big Tech and farmland investment is striking, but maybe it shouldn’t be. Farmland has proven a stable asset class that generates attractive returns over the short and long term. Furthermore, this tangible asset helps achieve diversific

ation for institutional and private investors alike. In these unstable times we live in, many are looking to strategically invest in the bedrock of civilization—our food supply.

The Red River Valley Farm Portfolio is a unique opportunity to acquire a large, high-quality farmland portfolio at a scale rarely seen. The portfolio’s 13,982 acres are concentrated along the Red River in Northeast Texas and Southeast Oklahoma.  This region’s local livestock and poultry markets have strong grain demand which helps to support a positive basis over the Chicago Board of Trade. Excellent water resources have already been developed to irrigate over 4,000 acres of the farm and the potential is there to increase this number significantly.

Contact us to learn more about this offering as well as farmland investment in general.


Sources:

https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2021/01/07/farmland-market-gets-strong-start

https://www.forbes.com/sites/arielshapiro/2021/01/14/americas-biggest-owner-of-farmland-is-now-bill-gates-bezos-turner/?sh=6212c8586096

https://markets.businessinsider.com/commodities/corn-price

https://www.wsj.com/articles/shrinking-grain-supplies-send-prices-soaring-11610552009

https://www.wsj.com/articles/surging-grain-prices-fuel-surprise-farm-recovery-11611322634

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