28 December 2023
Estimated reading time: 5 minutes
4 Ways To Invest In Agricultural Land
Investing in agricultural land is one of the best ways to make long-term gains on your funds, since the volatility of agricultural land is minimal, while the value of land is going into an upward trajectory.
However, investing in agricultural land is a hard task, especially for novice investors, who don’t have the needed financial capacity to make direct land purchases, or don’t have the time to delve into the regulatory hurdles of owning agricultural land.
Why Invest in Agricultural Land?
Agricultural land has become an increasingly attractive investment option for several compelling reasons:
1. Stability and Resilience
Farmland has shown historical resilience to market volatility, making it a stable investment choice. Unlike more volatile assets, agricultural land tends to provide consistent returns over the long term.
2. Growing Population and Food Demand
With the world's population steadily increasing, there is a growing demand for food. Agricultural land, as the primary source of food production, becomes a critical asset in meeting this demand.
3. Inflation Hedge
Farmland is a tangible asset, and its value tends to rise with inflation. This makes it an effective hedge against the eroding effects of inflation on the purchasing power of money.
4. Diversification Benefits
Including agricultural land in an investment portfolio provides diversification, reducing overall risk. It is less correlated with traditional financial assets like stocks and bonds, offering a way to balance a portfolio.
5. Steady Income Stream
For those who own farmland directly, leasing it to farmers generates a steady rental income. This can provide a reliable and passive income stream, especially during periods of economic uncertainty.
6. Long-Term Capital Appreciation
The supply of agricultural land is finite, and in many regions, it faces constraints due to urbanization and environmental concerns. Limited supply coupled with increasing demand can lead to long-term capital appreciation.
7. Environmental and Social Impact
Investing in agricultural land allows individuals to support sustainable farming practices. Many investors are drawn to the positive environmental and social impact that responsible agricultural investments can have.
8. Global Economic Trends
As emerging economies grow, the demand for agricultural products increases. Investing in farmland in regions with developing agricultural sectors can capitalize on these global economic trends.
How To Invest In Agricultural Land
1. Direct ownership of land
The advantages of land ownership are numerous. First and foremost, having land offers one's owner tranquility. Raw land is a long-term tangible asset that is impervious to wear and tear and has nothing that can be stolen or broken on it. It is a scarce resource that may be owned for a low cost and needs little upkeep. To put it another way, it's a comparatively passive investment. Since the majority of real estate investors concentrate on making investments in commercial and rental properties, there is relatively limited competition in the land market, however, you still need to be familiar with the details of the market and have a large financial amount at your disposal.
2. Agricultural Real-Estate Investment Trust (REIT)
An organization that owns, manages, or finances income-producing real estate is known as a real estate investment trust (REIT).
REITs, which are based on mutual funds, combine the money of multiple investors. Individual investors can now profit from real estate investments without having to manage or purchase any real estate themselves.
Generally speaking, REITs focus on a certain real estate industry like agricultural land, for example. Yet, there are diversified real estate investment trusts (REITs) that may include a variety of real estate assets in their portfolios.
3. Agriculture Crowdfunding Platforms
How do crowdfunding platforms for farming operate? On crowdfunding websites, investors sign up and select a project or campaign to sponsor. Investors earn either some regular returns or partial ownership of the firms, depending on the platform's business model—equity, P2P, or even donation-based crowdfunding.
Conversely, to garner attention, borrowers need to make a strong presentation and provide a detailed account of their project or campaign.
It can be necessary for both parties to take further verification measures in order to validate their legitimacy, credibility, and excellent credit history.
4. How APF Streamlines the Process with its APF Coin (APFC)
APF Digital Agrifund CR s.r.o. is part of AFG Group and is not just a land investor trust, it is a complete ecosystem for you to invest, monitor, diversify your portfolio, and yield massive APY with APF’s Coin (APFC).
The digital coin is built as a security token, backed by real value in the form of agricultural land, owned by the companies in the APF Group. This way the token is immune to volatility swings, inflation, and pump-and-dump scenarios. The token also acts as a gateway for using APF Group products or services.
The funds generated from investing in the APF Coin would go directly into buying more agricultural land in the Czech Republic and other countries in the EU, further cementing the yields and sustainability of the project. A total of 250 million tokens will ever exist, meaning that their value would only increase due to scarcity.
However, one of the main benefits of owning the APF Coin is the buyback option. APF would buy back some or all your tokens at a buyback price, which is based on fixed pre-agreed terms. This ensures that your investments into AFPC would yield approximately 20% per annum.
The APFC token is listed on nine crypto exchanges, including HitBTC, Bitmart, Bitforex, Latoken, Azbit, Coinsbit, P2B, CoinW, IndoEx, and the company is planning new listings in the upcoming quarters. Investors can also purchase AFPC via an OTC, and pretty soon via a direct purchase option built on the corporate website.
The investment landscape has undergone a radical shift in the past 10 years. Who would believe that Bitcoin, the largest cryptocurrency to date, for example, would explode and create a whole industry around itself?
Cryptocurrencies, however, managed to also infiltrate into traditional sectors and APF Group believes that agriculture is a wonderful place for innovation. APF Digital Agrifund is a cutting-edge innovation fund that may turn the tides of agricultural land investments.
Learn more about our investment options at https://apfdigitalagrifund.com/en/finance/