Blogs by Dylan Duren

The U.S. Energy Information Administration (EIA) provides comprehensive analyses and projections of the nation's energy landscape. Recent reports highlight significant trends and forecasts across various energy sectors, reflecting the dynamic nature of energy production, consumption, and policy in the United States.

Battery energy storage systems (BESS) are revolutionizing the way we generate, store, and use energy. As the world shifts towards renewable energy sources, these systems are becoming a critical component in ensuring a stable and reliable energy supply. BESS not only help manage the variability of renewable energy but also play a vital role in creating a resilient and efficient power grid.

Investing in farmland with a cash yield of only 2.5% might seem less attractive when current treasuries yield 5% or more. However, several strategic reasons exist to consider farmland a valuable addition to your investment portfolio. This article will explore these reasons, including inflation hedging, portfolio diversification, long-term appreciation, and other benefits that make farmland a compelling investment.

California has long been the United States’ most significant agricultural producer in terms of crop diversity and total crop value – its ag exports alone are worth more than the total production of 44 states and California is the only state that generates over 10% of America’s agricultural receipts.

The energy sector is undergoing a transformative period marked by significant investments in renewable energy alongside continued robust investment in oil and gas. Understanding these investment trends is critical for stakeholders, policymakers, and the public, as they shape the future of energy supply, economic growth, and environmental sustainability.

Earlier this month OPEC+ announced it intends to continue production cuts through the second quarter of 2024. This announcement left forecasters at the EIA scrambling to adjust the Short-Term Energy Outlook stating, “We now forecast significantly less global oil production than world oil consumption through the first half of 2024, requiring draws on world petroleum stocks (inventory). Stock draws tend to increase oil prices.”

Beginning January 1, 2024, the Corporate Transparency Act (“CTA”) will officially go into effect, which requires additional reporting obligations on U.S. entities and foreign entities doing business in the United States to provide beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). Congress established that the general intent of the CTA is to prevent illicit activities, including money laundering, financing terrorism, tax fraud, and other harmful activities related to national security interests, from occurring through the use of entity schemes. The CTA applies to any corporation, limited liability company, or other similar entity (limited partnership; limited liability partnership; limited liability limited partnership) that files an application (e.g., Certificate of Organization/Incorporation filed with the Secretary of State) under the laws of a State or Indian tribe, subject to certain exemptions. As a result, the CTA will impose the reporting burden on many farmers, landowners, and other industry professionals.

After reading yet another negative headline on the $20 trillion commercial real estate (CRE) market, I was reminded of the investment characteristic I once assumed the CRE market shared with the $4 trillion farmland market.