WHY INVEST IN FARMLAND

The Benefits
  • Land value continues to rise over time
  • 2-5% cash-on-cash returns along with potential for land appreciation
  • Highly competitive farm rental market = higher rents on the horizon
  • Farms are a “real asset,” not a “paper asset”
  • Inflation protection
  • Commodity exposure without significantly lower volatility than futures or commodity funds
Cash Flows are Virtually Guaranteed

Typical rental agreements have the farmer pay a portion of their annual rent at the beginning of the calendar year before any crops are planted. Weather, grain prices, and other factors are the farmer’s issues. Landowners simply collect the rent and pay the taxes and liability insurance (which are minimal). Current rental rates are creating cash flows of 2-5% of the farm value, which is historically low. We expect farm cash flows to increase over the next several years due to the competitive rental market and rising grain prices.

4 Factors Driving Crop Prices
  1. World population growth
  2. Production of ethanol and biofuels
  3. Global money supply increases, creating inflationary pressure
  4. Development of the middle class in emerging markets consuming high protein diets
Farmland Balance Sheets are Favorable

According to the USDA, farmland debt-to-equity ratios are near all-time lows. Most U.S. farmland is owned outright, without any debt against it. Low leverage means less price fluctuation. Asset bubbles are caused when debt is used to highly leverage investments. Farmland is likely to maintain its value because the balance sheets of America’s farmland could not be more solid than it is today.

 

Testimonials

“American Farm Investors has delivered on every promise and then some. I am thrilled to be a part of such a rewarding investment.” – Jerry G., Champaign, IL (client since 2011)

Testimonials

“Working with Brian and AFI has not only been extremely exciting and rewarding but also very simple and transparent.  Brian’s extensive knowledge of farmland investing and commodities gives me the highest degree of confidence and assurance.  My investment has been managed with exceptional professionalism and forthrightness.” -H. Phillips, Lexington, KY (client since 2012)

Testimonials

“I was searching for an investment that would provide diversification and a conservative stream of income. The investment in farmland has worked well on both counts. I would advise any investor that is looking for these features to check into this type of investment.” -Mike S., Champaign, IL (client since 2011)

Testimonials

“I was looking for a way to invest in farmland and American Farm Investors has proven to be excellent. Projected returns have been met and I consider AFI to be a perfect low-risk alternative investment.” -Noah O., Birmingham, AL (client since 2011)

Testimonials

“As an investor in two farms sight unseen with Brian, it is obviously based on a high level of trust. AFI has delivered on everything they promised and I could not be more pleased. Just received my first dividend check!” -John G., Biloxi, MS (client since 2012)