For those of you who don’t stay up to date on Ag related investing, farmland has been absolutely killing it:
There are a few structural drivers behind this and it’s expected they’ll remain strong tailwinds for the asset class:
- Global Population continues to increase – more mouths to feed (increasing demand)
- Maxed out Crop Yields – for a long time the amount of crops we were able to grow per acre of land increased with population growth – we became expert farmers and were able to squeeze more and more out of the land (see chart below – this also explains why everything you eat today is made from corn) that increase in yield is starting to stall (squeezing supply)
- Reduction in arable land due to development (squeezing supply)
So how do you get on the Farmland gravy train? Besides buying a farm outright you can invest through the new platform Fquare. It appears to be a crowdfunding platform designed to give accredited investors diversified exposure to US farmland. Unfortunately their website falls well short of answering even the most basic questions of how the platform works.
I don’t know enough about Fquare to endorse it or not – I only mention it here because (1) it appears to be a cool confluence of agriculture and technology, and (2) I haven’t posted anything about Ag investing until now.