Before we get into How To Invest In Farming Without Owning A Farm, let’s talk about why it’s a good idea to actually invest in a farm without owning one.
First and foremost the cost to actually own a farm you are going to need a very sizable investment to get started. You will probably need to take out loans and get other investors involved just to get the ball rolling.
Also these type of investments are basically recession proof because the world will forever need food. Crops will need to grow and the food will need to be moved across the country to different food supply locations.
So it’s many opportunities to get involved with the agriculture industry. So now that we know why we should get involved with the farming industry let’s talk about how.
The closest that an investor can get to owning a farm without actually doing so is by investing in a farming-focused real estate investment trust (REIT). Some examples include Farmland Partners Inc. (FPI) and Gladstone Land Corporation (LAND).
These REITs typically purchase farmland and then lease it to farmers. Farmland REITs offer many benefits.
For one thing, they provide much more diversification than buying a single farm, as they allow an investor to have interests in multiple farms across a wide geographic area.
Farmland REITs also offer greater liquidity than does owning physical farmland, as shares in most of these REITs can be quickly sold on stock exchanges. And farmland REITs also decrease the amount of capital needed to invest in farmland, as a minimum investment is just the price of one REIT share.
There are also Agriculture ETF’s, Agriculture Mutual Funds and individual Agriculture Stocks. These are different investment vehicles that can get you into the game of investing in farmland or farms without actually owning any.
If you want to actually invest and don’t know what apps to use I suggest Stash app if you’re a full on beginner when it comes to investing or you can use Webull if you’re a little more advanced when it comes to investing.
Check them out and you’ll actually get some cool perks for going through my links.
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How To Invest In Farming Without Owning A Farm
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