Farmland Investment Pros Tell All

May 21, 2016 04:00 AM
 
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Institutional investors are putting down millions of dollars for farmland. There’s always been investment interest in agriculture—but never before has it been so widespread. That’s why three land investment experts will interact with young farmers during a panel discussion about the changing face of land ownership June 17 at the 2016 Tomorrow’s Top Producer conference in Nashville.

Why should young farmers seek out opportunities to network with investors? As a young producer, investors could shape how you manage your land, how you document and report your production practices and connect you to financial opportunities you wouldn’t have considered. And rather than being a cause for fear, investors say that if you can build a relationship with a reputable investment firm, you can forge long-term opportunities to farm the land and do what you love with minimal intrusion.

Register now for Tomorrow’s Top Producer and the land investment panel featuring Shonda Warner, Chess Ag Full Harvest Partners; Brian J. Wise, US – Agriculture (formerly of Halderman Real Asset Management); and Rick Bodio, Hancock Agricultural Investment Group.

They’ll engage attendees in an in-depth conversation about critical questions such as:

  • How can young determine whether a firm has their best interests at heart before partnering?
  • How do you make the bridge from the emotional value of land to the financial value of land and farming practices that will generate a return?
  • What motivates investors to place their clients’ funds into farmland? Can farmers trust them?
  • What does an investment relationship mean for a farm’s financial reporting practices?
  • How do crop budgets, return to the land and other financial metrics factor into an investment firm’s due diligence process?
  • How do cash rents, shared rents and other rent strategies factor into land values and land purchases by investment firms?
  • Why are young bankers skilled in agriculture missing from many rural communities—and why does this need to change for farmers to benefit?
  • What professional presentation skills do farmers need to skillfully negotiate with investors?

Don't miss the 2016 Tomorrow’s Top Producer conference! Get ready to learn as these farmland investors tell all.

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Comments

 
Spell Check

Horace
Franklin , IN
5/23/2016 03:16 PM
 

  The outside investor provides no benefit to agricultural. It doesn't matter if I rent from the retired farmer, the widow Zack or the corporate investor. It's still the same piece of ground. Unless the investor builds me a livestock building or installs irrigation it's just a different landlord. All they have accomplished is to drive up the price where individual farmers will no longer own a majority of the farmland. This, along with Farm Management a will result in tenant farmers becoming the poor share cropper of the past.

 
 
tom
gregory, SD
5/30/2016 10:12 PM
 

  Why farm for money people and struggle? Invest, struggle and in the end you will own it yourself instead of having nothing in the end. Their the people making the land so costly anyway. If they want to own it live off of it. See how many money people will do that.

 
 
Mike McCann
Kearney, NE
6/9/2016 09:38 AM
 

  Don't be naïve guys. The Investors are in the market and will stay in the market. There are large Investors and then their are the Doctors and Bankers who own a quarter here and there and rent them out. I have clients who have sold ground and leased it back or who have found the investor potential sellers of ground and had the investor buy it and lease it to them. There have been investors in real estate at least since the 1930's and I suspect much longer than that. My Grandfather, who was an attorney in central Nebraska, began buying farms rather than see the local guys lose them to the bank in 1938. He then leased them back or did an owner carry. The last one was paid off in 1987...over 35 years after the farm family came to him. The interest rate was less than 3%. That same thing is happening today. Just this spring, I helped a tenant find a new investor for a 400 acre farm they had rented for decades and the owner recently died. I hooked them up with an investor to help keep them farming that ground for years to come. I am sure they would disagree with your comments. I am pro-farmer but that also means what is best for each individual farmer and sometimes that means working with an investor.

 
 

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