INVESTMENT DIVERSIFICATION THROUGH AGRICULTURAL REAL ESTATE
Getting Started
Establish Investment Objective
Our recommended approach to get started with a new client is to set-up some time to have an initial phone call to talk and understand objectives, investment amount and timing.
These three factors help us to apply our value metrics to create an investment profile to apply to each piece of farm land on the market or opportunities that we see for land not currently on the market.
As we come to an understanding of the clients objects, the search begins and a property is located that meets the investment criteria established and detailed in our property prospectus with, when applicable, the top ROI scenarios based on active and latent revenue opportunities.
This prospectus serves as the information to form an initial offer, reference for negotiation and limit as to final offer.
Additional Prospectus Information
National, regional and local per acre price trends. Examination of the trends and factors that are driving the trend are detailed as many influencers of trends are short term (>5 years) and others are longer term. This analysis assists our clients in their determination of value of the land as well as the long term direction.
Row crop and grazing lease potential and trending. Current price trends of grain prices and grazing lease prices as well as other factors influencing current prices.
Recommended local lending institution and expected interest rates. In most cases, lending on farm land investment is done locally as larger out of state lenders tend to not serve agricultural debt markets.
Pre-lease acceptance from local Agribusiness Corporation with cash rents established. This may or may not be completed pre-sale depending on if the land being considered is publically on the market or not. Otherwise, prospective tenant could become actual buyer.
Government program opportunities. Depending on land attributes, one of many Government land reserve programs such as CRP, WRP, filter strips, Ripairian Buffers, etc. The cash flow from one or many of these programs may be factored into the ROI scenarios contained in the prospectus.
Specific latent value estimations. These items could be one time income occurrences, such as a timber harvest or reoccurring such as recreation leases.
All of these and other possible revenue opportunities complete the individual prospectus for our clients to base a fact based decision on establishing an offer.