Investing in Farmland

 

An investment in farmland is an investment in America’s rural economic engine – an engine that is built around the production, processing, and manufacturing of food, fuel, and fiber.

 

It is estimated that only 7% of the earth’s land surface is suitable for cultivation and most of the world’s productive arable land is already in crop production. However, according to the United Nations, the world population is expected to grow from 6.8 billion to 9.1 billion by the year 2050. Also, as more of the world’s population moves from poverty to the middle class, diets will improve and people will consume more meats and proteins. According to the United Nations, food production will have to increase by 70% by the year 2050, and 90% of the growth in crop production will come from increased yields. As farmers push the yields higher and crop values increase, land appreciates in value.

 

These macro factors make an investment in farmland not only a reasonable choice, but also a smart choice. In addition to the opportunity to own a real tangible asset, farmland also provides a hedge against inflation and is an asset class with no correlation to stocks and bonds.

 

Capitaline’s land investments are concentrated in the Western Corn Belt of the US and the state of Bahia, Brazil.

 

Capitaline builds and manages custom private land portfolios, such as BlackFork, LLC, as well as sponsors a private investment fund: US Farmland Fund, LP.