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Land Investment Monthly - October 2017

October 25, 2017 - Peoples Company



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 farm land, recreational ground or development ground. 


USDA fails to monitor foreign owners of farmland

A law requiring foreign investors to report transactions of farmland to the U.S. Department of Agriculture has been on the books for almost 40 years. But as the amount of foreign-controlled farmland doubled in millions of acres between 2004 and 2014, the USDA has lapsed in enforcing the law, a review of USDA documents has found. Read More


Farmland Partners Announces $110 Million Acquisition Of California Farmland

The properties are located in California's Central Valley and are dedicated to the production of almonds, pistachios and walnuts. At closing of the acquisition, FPI will enter into a 25-year triple-net lease agreement with Olam on a revenue share basis. During the term of the agreement, Olam will operate and maintain the properties and improvements. Closing is subject to customary conditions. Read More


Northey faces Senate Ag Committee as confirmation proceedings begin

If confirmed by the full Senate, [Iowa Secretary of Agriculture Bill] Northey would oversee the Farm Services Agency, Natural Resources Conservation Services and the Risk Management Agency. The combination of those agencies under a single missionary is part of a streamlining of services proposed by U.S. Agriculture Secretary Sonny Perdue. Northey says a streamlined department will offer better customer service to the nation's producers. Read More

Farm Managers Embrace Disruptive Technologies

“There is Wall Street money and Silicon Valley money being pushed into agriculture, and it’s unusual to see money pushing in from both those sides,” says Jim Farrell, AFM, president at Farmers National. 

University of Illinois agricultural economist Bruce Sherrick describes this as a large amount of dry powder waiting to be invested in agricultural land and ag tech. He says that farmland has seen a strong and steady return on investment with an average return on an annual basis for U.S. farmland being 10.27% from 1970 to 2016. Additionally, only 1% of farmland turns every year, so supply is constricted. But there’s no equity market available to use for trading a share of farmland. So the money is going into technologies surrounding farmland values or real estate investment trusts. Read More


GOP goal of repealing estate tax endorsed by 700 economists

The Trump administration and House Republicans have offered plans that include repealing the estate tax, which levies a top rate of 40 percent on bequests. The tax applies only to large estates, those that amount to more than roughly $11 million for a couple. Read More


Op-ed: A better farm future starts with the soil

Soil health is critical for agriculture and natural resource management because only healthy soil can effectively cycle nutrients and capture and store water, which sustains plant and crop life and helps to build resilient, productive agricultural systems. As our most significant package of food and farm legislation approaches expiration on September 30, 2018, many are asking: How can the farm bill support resilient farms, address natural resource concerns and increase productivity? A key part of the answer: promote soil health. Read More


Farm it like you’re ‘just’ renting it?

Do farmers look after rented farmland differently than land they own? Should they?

We’ve all heard the term “drive it like a rental” but could that also apply to farmland? Is a farmer more likely to use conservation practices like no-till or variable rate technology, or apply more fertilizer and/or manure to improve the fertility on land he or she owns than on rented land? Read more



Published in: Real Estate