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Farm Land ~ I would like to buy stock in mass farm companies that own and operate huge farms... are there any?

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June 16, 2009 – Comments (10)

Hello,

I think a great and safe investment would be farm land, around where I live its $5-7K an acre and you have to buy 100+ acres, I dont have that kind of money, so my next bet is to find a company that I can own that does.  I've searched but found none?  I am already invested in commodities (corn, soy, etcc..)  but I'd really like to own a strong company that owns and operates farm land.  I'm hoping someone out there knows something.

 

Thanks

CMoney 

10 Comments – Post Your Own

#1) On June 16, 2009 at 7:13 PM, Harold71 (22.27) wrote:

While farmland has already performed strongly over the last 5-10 years, I agree with your strategy at this time. 

The only one I've researched that comes to mind is Sanderson Farms (SAFM).  But they don't just "own and operate farm land."  They are a fully integrated poultry producer, and near a 52 week high.

You might also add oil/gas producer(s) if you don't have exposure.  BPT and PWE tend to come up on my radar.  I think gold tends to track with farmland prices as well.

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#2) On June 16, 2009 at 7:23 PM, Harold71 (22.27) wrote:

You might be interested in this.

"Will farm land values keep booming?"

http://www.kansascityfed.org/PUBLICAT/ECONREV/PDF/2q08henderson.pdf

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#3) On June 16, 2009 at 9:12 PM, devoish (97.09) wrote:

Griffin is a nursery. GRIF

Please read JakilaTheHun's pitch. Please.

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#4) On June 16, 2009 at 9:34 PM, TMFMmbop (37.84) wrote:

Cresud (Argentina and Brazil), Black Earth Farming (Russia), Sprott Resources (Saskatchewan)...you'd probably be interested in all three of those. All are food plays with lots of acreage. Sprott also has gold and silver exposure. 

Tim 

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#5) On June 16, 2009 at 9:35 PM, royshufly (< 20) wrote:

Look into CRESY, owns lots of ag-based land in Argentina...trades ADRs on the nasdaq

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#6) On June 16, 2009 at 11:02 PM, ajm101 (32.83) wrote:

http://stocksbelowncav.blogspot.com/

That guy has been following land value plays for years, and is a great resource.  I have CRESY, TRC, and POPE myself.  CRESY is 1M acres in Argentina.  Apparently ALCO is a Florida citrus company that has 100K acres, I've added them in CAPS, but don't own them in real life.  Best of luck.

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#7) On June 17, 2009 at 5:19 AM, checklist34 (99.72) wrote:

muah ha ha ha ha

my tentative plan is to exit stocks when the market hits my preplanned exit point, or when individual stocks do, and work into a situation where I personally own, and have farmed (as opposed to farm myself) at leas 25% of my net worth in farmland w/in 5 years. 

farmland = eternal, there iwll never not be a demand for it, its a hard asset, its eternal, its necessary, it can be quite profitable, it has th elowest borrowing rates of anything I've ever heard of, and we're darn good at (farming, that is).

and you can buy a really big truck and drive over the rough, stream river laden hilly gravelly wash-out parts, which is fun.  if you folk shaven't ever been offroading you should try it.  one of a kind experience

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#8) On June 17, 2009 at 5:37 AM, ryanalexanderson (< 20) wrote:

A few notes:

1) Most farms aren't profitable until you get up to 500 acres. Economies of scale, etc. Individual farmers are constantly protesting that they need more subsidies, and so on. 

2) Remember, your profit is very weather dependent and capital-intensive. In my area, the only way to money is dairy farming...and quota is very expensive. Hiring a farm manager cuts into these profits considerably. Rule of thumb for upfront capital needs for dairy: a third in land, a third in equipment, a third in quota. We're talking -millions-. 

3) Renting out farmland is not profitable, either. There are loads of family farms that don't want to sell, but can't/won't run it themselves either.

4) This one's obvious: your land better not have -too- many "rough, stream river laden hilly gravelly wash-out parts"!

I think the idea of buying a stock of a big farming enterprise is much better. Gives you weather/political/crop diversification, and smells much nicer to boot. Then you can invest your dividends in a nice rural property with a lot less BS. (-literally!-) 

Unfortunately, I don't have any tickers to suggest, though. Sorry. 

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#9) On June 17, 2009 at 8:21 AM, cmoney85 (< 20) wrote:

Thanks! everyone for your help, I'll check out all the information given.  This is why you have to love CAPS!

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#10) On June 17, 2009 at 9:48 AM, Farmforecast (< 20) wrote:

I think you would be interested in this blog: http://farmlandforecast.colvin-co.com/

They have some good articles on why farmland is a good investment. Be sure to take a look around the site. It's based in the US.

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