Investing in Agriculture: iNVEZZ Looks from the Perspective of the Private Investor

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Frank Quin of investors’ portal iNVEZZ recently released an editorial covering the different options for investing in agriculture. Looking from the perspective of the private investor, the author dissects the considerations, strengths and weaknesses of some of the main routes available.

iNVEZZ

iNVEZZ

The prospective investor in agricultural land needs to proceed on the crystal clear understanding that they’re embarking on a long-term investment project.

Investors’ portal iNVEZZ recently published a commentary analysing the different options for investing in agriculture, and more specifically in farmland. The editorial is part of a series covering this alternative investment option and gives an initial direction to anyone considering such venture. At the beginning of his analysis, the author, Frank Quin, remarks that he takes the perspective of the private investor “with something in the range of, say, £10,000 to £100,000 at their disposal.” With that note being made, Quin starts exploring the particular options that such investor has when deciding on investing in agriculture.

The author first identifies the broad categories of agricultural investments. Quin classifies three basic forms of investing in this alternative asset class – “investment in farmland, investment in farming, and investment in upstream or downstream activity, meaning supply of inputs to a farming operation (upstream) or the (downstream) processing of farming outputs.” After making this important note, he narrows readers’ attention to investing in farmland, which, as the author underscores, “requires careful consideration of the bigger picture.”

After dissecting the particular types of agricultural investment and analysing their strengths and weaknesses, Quin takes a closer look at another important point of consideration – the investment location. The “Home or Away” section of his recent editorial includes helpful information in regards to the most popular and not so popular, yet still favourable, locations for investing in agriculture -- “from the least developed parts of the world to the most, from lush plantation land in equatorial Africa, to the fertile black soils along the Romanian and Bulgarian sides of the Danube, to cool, high-country pastures in the South Island of New Zealand”.

Concluding his iNVEZZ analysis, Quin stresses another consideration for the would-be investor. He writes: “The prospective investor in agricultural land needs to proceed on the crystal clear understanding that they’re embarking on a long-term investment project, involving a product which may not, and in all probability won’t, be quickly liquidated should the need for cash arise.”

To learn more about iNVEZZ, join, contribute your own professional or amateur expertise on the investment areas of your interest or engage with other investors or experts, please visit http://www.iNVEZZ.com.

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John Adam
iNVEZZ Limited
+44 (0) 845 8340101
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