The world of farm business is changing. In the past, if a farmer wanted to expand, he called the bank and borrowed the cash. Today around 7.1% of all farms are some form of equity partnership. Farmers are finding it is better to be part of something rather than risk all by over exposing themselves to any lender.
These investment structures are a joint venture between groups of individuals and can range from owning just the land to being part of the land and farming business. All equity partnerships aren’t equal and investors need to be wary. One needs to understand what they are investing into. Farming is a long term investment and the asset liquidity isn’t great but it can be very profitable over a ten year period. It is important to do due diligence with an informed third party.
It is important to understand the costs, both up front and on going. Good governance is also vital.
My background as a Lincoln graduate, farmer and a qualified financial planner, puts me in a good position to assess these opportunities. If you want advice on how to invest into farming by direct ownership, please give me a call.
John Barber