For centuries the world’s wealthiest families have owned land.
Being a Land-Owner set you apart in society.
Going back to early civilization, when man learned how to produce food on his land and could produce more than he could consume, he then had excess which he could store and sell.
He now had savings and the ability to generate revenue. As well as the ability to feed his family.
Food was traded for other goods and services as the original form of currency!
So, you can see why these values of owning agricultural real estate still hold true today.
However, in today’s society we think that only the rich can afford the large swaths of land and large financial outlay needed to get into the business. That it is somehow out of the reach of the regular guy on the street.
Or, that guy simply does not want to be a farmer!
Here at AgroNosotros we created a business model where mom and pop investors can participate along side us by owning productive farmland and enjoying the benefits of the annual cash flow that the crop provides, without getting their hands dirty.
When you are looking to acquire traditional investment real estate, the local Market is the key indicator.
You need tenants and tenants need jobs. What are the schools, tax policies even the weather like in that area.
Everything is Local.
When you are looking for agricultural real estate, you identify land in the country that has the best growing conditions, and you sell the crop that you produce to any country in the world where the demand exists.
Everything is now Global.
And remember, you are producing Food, a staple that every human being the world over needs daily, in a world where the population is increasing, and the availability of arable land is decreasing.
An agriculture boom is forming, said Jim Rogers, who intends to invest in agriculture more than in Amazon.com Inc. (The Edge Financial Daily, Singapore.)
Apart from the obvious reasons of diversifying your assets outside your home country so that you do not have all your eggs in one basket, you simply may not be able to grow the in-demand, high-value crop in your home country.
Specialty Coffee and Fine Flavor Cacao do not grow in Canada, Ireland or the US but they do grow in Panama and Belize!
Another reason for owning coffee farm parcels in Panama and cacao farm parcels in Belize is due to the way our business model is structured, there is no leverage.
As an active real estate investor leverage is good, financing is good. But financing also blows air into already over-inflated market and commodity bubbles.
No leverage means no air and less risk of collapse.
I’ll leave you with one last comment from Jim Rogers…
“There will be an imbalance in the future between demand and supply in agricultural commodities … and that will drive prices higher. I am not talking [about] all commodities … I am referring to agricultural commodities…..” said Rogers. (The Edge Financial Daily, Singapore.)