Newsletter - February 15

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:

1. What we’re reading

2. What we’re up to

Farmland value’s resilience in uncertain times. Many factors influence farm values, chief among them interest rates and commodity prices. Thoughts from Manulife Investment Management on the outlook for farmland values.

Biodiesel and renewable fuel: what's the difference? And how will the boom in renewable diesel production impact agriculture production? (Looking for a refresh on where corn production goes? These USDA stats show over 80% of corn production going towards fuel and feed.)

‘Holy grail’ wheat gene discovery could feed our overheated world. Wheat provides 20% of calories for all humans, but higher temps are threatening future production. Crop scientists were able to isolate and use gene editing to create a new variety being tested in Spain. Also an interesting case study in the tools used to continually improve crop yields.

High farmland prices aren't deterring buyers and fundamentals support farmland values, according to U of I ag economist Nick Paulson. “Markets are incredibly rational…after 2019 with high commodity prices and long-term income that looks pretty good, we had marketing conditions that were very favorable to agriculture and markets that responded appropriately.” What’s going on with those $20,000 / acre price tags? “Farmland is such a local asset, and there are many individual aspects associated with every single sale… The $25,000 acres are the ones that hit the news, but you never know if that was the neighbor buying in because it completed a section.”

How beginning farmers secure capital – what specific needs they have, what they must demonstrate, and what questions they should be asking.

China’s bid to improve food production? Giant towers of pigs. Pork production and supply is a strategic imperative in China, leading to the construction and operation of a 26-story high-rise pig production facility.

Meanwhile, China is currently the US's largest export market for agriculture. Farm Policy News shares an overview of implications from rising tensions, including some the latest stats on ag exports. According to the USDA’s Under Secretary of Trade and Foreign Agricultural Affairs, “we are aggressively diversifying our global portfolio of export markets for U.S. agricultural products to other promising markets, such as Vietnam, the Philippines, Egypt, and Kenya.”

WHAT WE'RE UP TO:

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Our team of economists recently published their predictions for where interest rates are headed this year, helping FBN farmers plan ahead.

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