Agriculture Real Estate Investing

[Jay Graham]

We are wanting to test the market for the demand of institutional grade Agricultural/Farmland investments syndicated for individual investors. Some of the key points for discussion: 

- Tax Advantages

- Inflation Hedge

- Low-Income Volatility 

- High total risk rated returns. 

- Counter-cyclical to the general economy 

Look forward to questions and great conversations around this asset class. 

[Michael Chilton]

@Jay Graham

Consider the following situation. You buy 100 acres of crop land in the Midwest for $5k/acre (extremely conservative). If you put 20% down at 4% over 30 years the payment would be $28k/year. You cash rent for $250/acre, for annual income of $25k. This results in a net loss of $3k/year. If you pay cash, you have a 5% ROI. Who knows what's going to happen to land prices. How can they continue to rise when commodity prices are falling?