Why Farmland is an Excellent High Yield Investment
greenworldadmin | Friday, August 31st, 2012 | 1 Comment »
Wheat price makes farmland a high yield investment
We have just coom across another excellent little article from our favorite investor. In this article, Jim Rogers once again discusses why he believes agriculture investments such a great place to be right now. According to Rogers:
“Various problems point to higher agricultural prices, and investors should buy now. Any weather problems will have big effects because of the dire situation in farming. Agriculture will be one of the best sectors of the world economy for years as I have told you often,” he said.
Consider the following logic. If prices for agriculture commodities such as wheat are high, then those investors who own farmland will naturally benefit from a quite high dividend yield when the wheat crop is sold into the marketplace. In a low or zero interest rate world, many retail investors are searching for secure high yield investments for income. Whilst many may “reach for yield” by investing in risky assets such as high yield bonds or other esoteric investments, farmland as an investment can provide the same high (or even higher) dividend yield without the dangerous exposure to an unsteady financial system that more risky financial assets do.
Luckily for individuals, it is now possible to invest directly into the “real asset” of farmland, and GreenWorld is leading the way with three direct farmland projects with low minimums investment requires. Please visit our section on investing in farmland, wher you can look over our projects in African European and Australian farmland. Please do contact us at info@greenworldbvi.com to receive more detailed information.
Jim, with all respect………..Yes farm Land is a good investment when prices of grain is good, but we have seen so many times that the price drops down within on season by 50% and more…..all depending on rain, supply and demand…………..Many people only see the price of the grain soaring, but they are blind to the expense that goes together with it.
The input cost for any commodity is tremendously high. The producer at the end of the day is making a penny and the middle man is counting his pounds, without any risk involved, but for losing the contract to another who might pay better prices to some of the producers.