Alternative Investment Interest May Drive An Explosion In Farmland Partnerships
The Farmland Marketing And Management Group Says, A Number Of Contributing Factors Could Create a Flood of Individually Structured Farmland Partnerships Into The Alternative Investment Market
- (1888PressRelease) March 02, 2012 - According to Tracy Lynn Bolton, Founder of Farmland Marketing And Management Group, Inc., ( www.farmlandmarketinggroup.com ) "We have farmers contacting us from all over the United States looking at selling their operations."
Bolton and her staff knew this day would come and over the last 4 years, as a result of her firms marketing efforts, she has inventoried an impressive list of individual investors, institutions, university endowments and others all looking to participate in farmland investment opportunities.
"Our research indicated that a generation of farmers would be approaching retirement age and that there would probably be a lot of farmland for sale. We knew that a growing world population, a global food crisis, an emerging bio-fuels industry and a diminishing supply of productive farmland would most likely increase the income, appreciation and value of the farmland making for a nice investment. It actually turned out better than we could have imagined." says Bolton
From an investment or investor perspective; the world debt crisis, continued economic uncertainty and market volatility have created an environment that makes many investors wary of more traditional investments, creating interest in alternative investments.
Sounds like a perfect situation, farmers looking to get out and investors looking to buy farmland but Bolton points out that, "Despite all the farmland acquisitions made by non-farm investors over the last half of a century the majority of farmland in this country is still owned by farm families and a large portion of what is sold, is sold to other farmers. "While there is the strong temptation to sell, I think many of these farmers are informed enough and have been around long enough to know that their land will continue to rise at an aggressive pace." states Bolton.
"If someone were to come up with an alternative to an outright sale that was more attractive and profitable for farmers you might very well see much of this countries farmland available to investors. Farmland that might otherwise never be available to a non-farm investor."
In fact, that is precisely what Bolton and her associates have been working toward for the last 4 years.
"Our firm designs simple, inexpensive limited partnerships that give farmers the liquidity they need and want, minimizes capital gains taxes and allows a farmer to continue participating in the future income and appreciation of the land all without going into debt or losing control or possession of their farms."
The sheer number of farmers looking to retire coupled with the investment community's thirst for alternative investments could create a "windfall" of these partnerships entering the marketplace. "This would be unprecedented!" Bolton points out "There isn't a lot of farmland for sale, relatively speaking. I think we are going to be bringing a lot of these investors and farmers together in our individually structured partnerships."
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