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Invest In Farmland - Investing in agricultural land
Investing in agricultural land has not been a favorite thing for many investors around the world, since this investment requires good knowledge of agriculture and the many problems surrounding it and how to deal with those problems. However, everything has changed very quickly with the presence of many new investment opportunities that reduce... Obstacles for investors.
Today, with the government facilitations regarding this investment, all you need to invest in agricultural land is a little money and an investment account, and this is a good thing compared to other investments that require huge sums of money.
Why invest in agricultural lands?
In the past, the popular way to invest in agricultural land was to buy a farm or many pastures and make a profit by plowing those fields or profit from the rise in the value of the land. This was the widespread type of investment in the past, as investment in agricultural land was available to those who could produce and were agricultural farmers. .
But now, people can consider agricultural land as just an alternative investment, as agricultural land produces significant returns so these investments can work better than popular investments such as investing in gold and real estate in addition to providing suitable income and capital gains.
How to invest in agricultural land - 5 ways to invest in agricultural land
1. Own the land directly
If you want to invest in agricultural land, some investors may tend to own the agricultural land directly, as you can buy the land and rent it to a farmer who will invest in it by cultivating this land or raising livestock on it. This means that owning the land directly will work like real estate investments. .
2. Agricultural real estate investment funds
The Agricultural Real Estate Investment Fund not only specializes in buildings and residential complexes, but also specializes in investments in agricultural lands, which is a popular way for investors to enjoy the benefits of investment without the hassle of management.
Investing in this fund may enjoy many diverse advantages, for example, it is a combination of investment in real estate and agricultural land together, and the minimum investment is often much lower than other investments, in addition to it does not enjoy a large tax.
3. Investing in agricultural stock
One of the alternatives to agricultural investments is investing in agricultural stocks instead of buying agricultural land directly, as you can buy many shares in international companies working in the field of agriculture.
These companies may work in many fields, such as crop production, agricultural equipment manufacturing, or agricultural fertilizer production and distribution. They make a profit on investment from land production.
4. ETFs
As we talked about previously, you can buy shares in agricultural companies, but investing in something like an exchange-traded fund (ETF) is often the better investment, as these funds collect investor funds in activities that support the agricultural industry.
5. Invest in crowdfunding platforms
Farmland crowdfunding platforms are another way to invest in agriculture, even if you lack significant capital, they allow you to buy a small piece of a real farm and profit from it, which greatly reduces the minimum and encourages you to invest. These platforms include:
- AcreTrader
- FarmTogether
- Farmfundr
** Crowdfunding platforms may generally handle everything for you rather than buying an entire farm, and you can also buy more shares at prices that suit you in a plot of land with other investors.
Important
For all people who want to invest in agricultural land, it is necessary to have a close knowledge of agriculture and its practices before making any investment so that you do not lose your money after you obtain sufficient experience. Here are many ways to invest in agricultural land above that will help you.
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