The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Mike Walsten has covered major business trends in agriculture for more than 40 years.
It's instructive to see what non-farm investors think about farmland ownership. Here are a couple of recent blog postings about Canadian and U.S. farmland selected by the website SeekingAlpha.com. Seeking Alpha is a website read heavily by money managers, research analysts, investment bankers and individual investors. It selects articles for posting from market blogs, money managers, investment newsletters and from other financial experts. Seeking Alpha says they have more than 3,000 contributors. Keep in mind all items represent opinion and analysis by the author.
I'm highlighting to two recent blogs posted on the website. The first is written by a blogger named Kalpa reflecting on the 3.2% decline in U.S. farm real estate values in 2008 reported by USDA this week. (Check my August 4 blog.). You can read her comments here. I posted an earlier blog from Kalpa on July 20 in which she explained why she thought farmland values would decline. I offered my tempering views on her negative analysis in that blog, which you can read here.
The second blog features an investor who looked at the investment performance of Canadian farmland. You can read his analysis here. His analysis does a good job of telling the Canadian land market story. Keep in mind that the data he uses is "as of" Dec. 31, 2008 so it does not catch any setback in values which have likely occured in 2009. Farm Credit Canada will release that data soon and I will update you when they do.
If interested in seeing a copy of my newsletter, LandOwner, just drop me an email at email@example.com or call me at 800-772-0023.
If you are interested in more data on Canadian farmland returns you can also go to www.farmlandinvestmentpartnership.com the website of a Canadian direct farmland investment fund called Agcapita Partners LP.
i hope and pray no one buys anymore farmland, it will give me a chance. yeah land, it's worthless. don't buy. just steer clear of farmland. thanks