The Land Investment Monthly is a round-up of articles and headlines published by the farm press, business media and financial publications with insights into buying, selling or investing in farmland, recreational ground or development ground.

ON TRUMP
Regulation is a major concern for farmers, including those who feel chafed under what some viewed as overreach during the Obama administration. From the Environmental Protection Agency to the renegotiation of trade agreements, Agriculture.com reports on expectations of farm groups and supporters of Donald Trump following the real estate mogul’s election as 45th president of the United States. Read more.

21ST CENTURY AG
The New York Times Magazine takes a highly interactive look at the business of 21st Century agriculture in a photo-centric piece highlighting large-scale operations across the United States. From turkeys to fish, cattle and dairy cows–to carrots, cranberries, greens and other produce–here’s a peek inside some big producers with an open view. Read more.

INSTITUTIONAL LEVEL
Statistics show that agriculture has attracted greater levels of interest from institutional investors in recent years. They seek to diversify their portfolios and position themselves to take advantage of growing demand for food–arising from population growth and increased consumption by emerging middle classes in developing countries. Since 2016, according to Preqin, it is estimated that more than 100 unlisted agricultural- or farmland-focused funds have closed–raising approximately $22 billion in aggregate capital. Beef Central reports that some investors seek to gain access to the ag sector via an investment in farmland, as well as ag-centered businesses focused on technological solutions in the field. Read more.

FEDERAL VIEW
The average price of good-quality farmland in the Federal Reserve Bank of Chicago’s district, including major farming states such as Iowa and Illinois, fell 3 percent from a year ago as Midwestern growers worked to wrap up what is projected to be a record harvest. The average price of “quality” farmland held steady, compared with a year ago, in the St. Louis Fed’s district. Though commodity prices are reportedly short of supporting the total costs of production, it is expected that bumper harvests will provide some protection for farmers’ revenues. Still, according to the fed, defaults on farm loans remain relatively low overall. Read more.

LITTLE EFFECT
Vanishing farm profits have had surprisingly little effect on agricultural real estate so far, according to a study of actual sales transactions that show farmland is more stable than some opinion surveys have concluded. DTN, reporting on Peak Soil Indexes, notes the fact that land values have slipped only by single digits–in spite of significant declines in current income– reflects its strength as an asset class. In fact, states such as Kentucky and Tennessee are still experiencing increases in farmland values due to recreational and urban expansion. Read more.

BIG APPLE
Hypothetically, the world’s 12 richest people could purchase all the residential property in New York. PropertyShark, diving into the latest issues of Forbes’ World Billionaires List, considers how tycoons such as Jeff Bezos, Michael Bloomberg, Warren
Buffett, Bill Gates and Mark Zuckerberg could divvy up some of the nation’s most expensive real estate. Read more.

BIG CORRECTION
AgriMoney.com reports on an assertion by MetLife Agricultural Finance that farmland prices are heading for their “first significant correction since the mid-1980s.” Blaming the decline on weaker farm profits, the agricultural mortgage lender said it expects that land prices in the United States will decline by an average of 20 percent from their peak. The article covers off on steepening declines and prolonged pressure, also noting that the market would not stage the kind of “crisis” seen in the 1980s, when a sharp rise in interest rates fueled a 42 percent collapse in U.S. land prices. Read more.

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