Investing in Farmland

As most readers know, one of our core and long-term strategies here at DWCM is our investment in the agriculture space.  Investment in the ag industry can take on many varying aspects such as equipment makers, fertilizers, seed, and actual investment in farmland.

The chart below comes courtesy of Jerry Robinson at Financial Sense.  Robinson notes in his piece four ways to play the agricultural boom.  DWCM is not invested in any names mentioned in his article but we do have investment in the following agricultural related companies

• Mosaic, Potash, Monsanto, Terra Nitrogen

Although we consider farmland to be a potential investment in the ag industry, it would likely be a extremely illiquid investment that an investor would need a consider amount of capital invested and a long time horizon. A better way to make more of a pure land play would be through a REIT or some other form of ETF that invest in land directly.

Source:  http://www.insidersstrategygroup.com