Tuesday, Sep 29, 2009

Farmland

Reuters: SEARCH FOR INVESTMENT HAVENS DRIVES VALUE OF FARMLAND UPWARDS

Somebody was listening to Jim Rogers.... UK farmland has shot back up to a 2008 peak. Food is often considered volatile and stripped out of the inflation index, so to what extent long run price increases in food are considered who knows, up to the authorities.

Posted by stillthinking @ 11:52 AM (3115 views)
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5 Comments

1. drewster said...

Nothing that a little LVT couldn't fix.....

I'd consider buying farmland, but it's relatively difficult to invest in (compared to the few clicks required to trade shares), and farmland isn't very liquid.

Tuesday, September 29, 2009 01:09PM Report Comment
 

2. mark said...

can be liquid if it rains a lot

Tuesday, September 29, 2009 01:39PM Report Comment
 

3. seanb303 said...

a 100acre farm in shropshire with a 4 bed house will set you back 1.1 million pounds
if your lucky you might be able to generate 50k a year from your crops
looks like a bubble to me

Tuesday, September 29, 2009 01:51PM Report Comment
 

4. enuii said...

Have you ever tried shifting it for a decent price? It can be surprisingly difficult to shift at auction unless you live in an area full of herberts who own horses, and my guess is that there will be plenty of the highly mortgaged pratts trying to offload theirs when interest rates go up to try and avoid loosing their rural lifestyle properties!

Tuesday, September 29, 2009 04:44PM Report Comment
 

5. drewster said...

On balance I think farmland is currently a bad investment. Most farms in the UK rely on cheap eastern european labourers, living in cheap caravans on the farm. However the falling pound could discourage many of those migrant workers - it's all very well putting up with a lousy job if you're earning 5x what you can get at home, but not so much fun if you're only earning 3x.

Buying farmland overseas might make more sense, but liquidity might be even worse and there could well be legal / political issues. Also I hate to think of the nightmare involved in finding tenants etc. If there was a REIT for farmland, that would be a lot easier.

Tuesday, September 29, 2009 05:17PM Report Comment
 

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