Are you thinking about expanding your investments but you have no idea which areas you should pick? If you are looking for a unique way to invest your money, consider investing in agriculture.
Farmland has historically high returns, and you can invest in agricultural land with or without purchasing a farm outright.
Farmland also sees less volatility than most markets. Globally, people rely on agriculture for everything, from global food to alternative fuels.
Purchasing Farmland Directly
This option typically requires hundreds of thousands of dollars in investments or a mortgage to pay for the land.
Real Estate Investment Trusts
A REIT is a group of accredited investors who purchase a farmland portfolio and then lease it to farmers.
Purchase Stocks
Another option is to invest in equity in the agriculture industry. These equities support farmland industries, such as fertilizer and seeds, equipment, and distribution or processing.
Mutual Funds & Exchange Traded Funds (ETFs)
Companies purchase shares of the stock picks above and bundle them into a fund meant to replicate the agriculture industry's performance. Then, investors can buy shares of the fund.
Invest in Farm Debt
You can purchase long and short-term farm debt both directly and through bonds. The farmer or landowner will pay back the loans monthly or quarterly, and you will receive consistent cash flow.