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Newsletter - March 22

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

What we’re reading:

Agriculture Learning:

Seasons are actually a "thing" in agriculture. How do they work, what crops grow when (and where), and why does that matter?

The business of farming. How farms make money, why scale (and cash!) matter, and why farms need financing. “Farmers wear many hats – they must act as biologists, mechanics, traders, and more.” At FBN, we have a deep respect for farmers given the diverse skill set they need to succeed.

Cattle and Land Use. Land on this planet is finite. Agriculture land with high quality soil, suitable for growing crops is even more finite. Do cattle serve a purpose in this limited landscape? Short answer: yes. Learn more about the cattle cycle, the difference between arable and marginal land, and the importance of soil health.

Relevant news:

Global grain shuffle: exploring shifts in global grain flows. Explore the factors impacting global corn and soybean exports.

Charting the landscape of ag tech companies. Who are the players and where are the holes in the market? Helpful information for understanding farmer pain points and potential opportunities.

The government wants to pay Western farmers to save water by not farming. The plan isn’t being embraced by the farmers themselves in the Colorado River Basin, leaving few solutions to the region’s water issues. Access and rights to water is complex, and there are no easy answers. Learn about potential policy solutions.

The US and EU are both agricultural giants with fewer and fewer farmers. More stats around the decreasing number of farmers farming larger farms.

Debt trends on Illinois farms. A farm’s debt load is an important consideration for investors. While total on-farm debt has been increasing over time, with rising farm values, debt-to-asset ratios are declining.

Random news:

How not to deal with China from the Economist. An analysis of foreign policy through meat: Argentine trade policy (and attempts to curb inflation) meets Chinese beef demand.

Chik-fil-A plans $1 billion international expansion. The Farmland Capital team remains bullish on growth in global protein demand from rising incomes. That protein (poultry/beef/pork) relies on commodity crop production in the US.

The Secret Behind Japan’s Delicious Strawberries: Kerosene from the NYT (gift link). The growing season has become completely reversed thanks to kerosene-burning greenhouses and the big prices paid for the earliest, best berries.

What we’re up to:

Read the latest research from FBN’s economists and data scientists: Where will US farmland prices go in 2023? Our team pulls data from one of the largest farming databases that exists, thanks to Farmers Business Network’s 50,000+ members to build a proprietary view of farmland values, projecting an increase in Illinois farmland values of 11% for 2023. Read the report to understand more about the valuation drivers.

Investment opportunities are available now in farmland in Illinois and Missouri with target IRRs of 14%+. Schedule time with our team to learn about the assets and we’ll walk you through the process to invest.

Our team is growing! Sam Trombley joins our investment team to help grow and expand our investor outreach efforts. He brings ten years of experience in consulting and investment banking with KPMG and Goldman Sachs to the Farmland Capital team and we are excited to have him.

We’re always available to answer any questions you have about the farmland asset class or how to get started investing in farmland through FBN – just reach out or respond to this email!

Thanks for reading!

* 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



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