Newsletter - January 17
- Jan 30, 2023
- 2 min read
Updated: Feb 15, 2023
Thanks for reading the Farmland Capital by FBN newsletter, where we aim to keep you informed on developments impacting farmland investing, thoughts on portfolio diversification, and news about investment opportunities in our pipeline.
IN THIS ISSUE:
What we’re reading
What we’re up to
The Bullish Case for American Ag. From changing demographics, increasingly protectionist governments, increasing climate stresses across the globe, and the strong technical position of American agriculture Peter Zeihan is optimistic on American agriculture in these uncertain times. To farmers: “it’s going to be a wild ride, but you’re going to get there and a lot of your competition isn’t. So buckle up.”
Key takeaways from McKinseys’ 2022 global farmer insights survey.
The 60/40 portfolio - BlackRock vs. Goldman, according to the WSJ. It depends on what you think about inflation, among other things. Inflation-protecting assets (like farmland) help mitigate performance in years like 2022’s 6.5% inflation.
Who’s behind all these record farmland sales? The auction market is hot, with demand both from investor groups and independent operators. Did you know all current Farmland Capital offerings took place outside the open market? Our unique structure gives us access to an additional 90% of the land market that other investors can’t access.
How a billion lost eggs show the challenges facing Ukraine – and our global food supply.
Farmland values hit record highs, pricing out farmers. Small farmers are now going up against deep-pocketed investors, including private equity firms and real estate developers. The Farmland Capital structure was designed to do the exact opposite – help farmers and investors partner together to build wealth in this important asset.
The worst tech predictions ever. What becomes immediately clear? “It is difficult to get a man to understand something, when his salary depends on his not understanding it” – Upton Sinclair.
WHAT WE'RE UP TO:
In 2022, farmland values increased 12% (according to the USDA), while the S&P declined 19%. Here at Farmland Capital, we believe in farmland’s strong fundamentals and long-term appreciation potential:
an increasing demand for food as the available supply of land continues to decline,
strong historical appreciation and correlation with inflation, and
strength as a portfolio diversification tool
Investment opportunity available:
We are accepting investments in Pyramid Farm, a corn and soybean farm in Illinois operated by the same family for four generations. Learn more about this opportunity with Target IRR of 14%* in our memo and webinar.
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*Target IRR represents an annual estimated target net internal rate of return (IRR) and may differ from actual returns. Target IRR is based on investment offering due diligence conducted by FBN Finance, LLC
I appreciate technical content that focuses on information readers can actually understand and apply. The explanation related to 192.168.10.1 offers helpful background about router administration and can give users a better foundation for handling basic configuration and connectivity questions.
Your perspective on this topic is both unique and enlightening. This piece provides a fresh and compelling take on the subject. pips nyt
The 12% farmland appreciation versus the S&P decline really puts things in perspective—curious to see how 2023 shapes up for off-market deals. Wavelength Game
interesting perspective on farmland as an investment. the diversification benefits and inflation hedge make sense given current economic conditions. the point about access to off-market deals is particularly compelling for investors looking beyond traditional options. the data on value appreciation versus other assets provides useful context. Image to Image AI
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