How To Invest In Farmland – Gladstone Land & How To Invest In Farming & Buy Farmland Without Owning A Farm

Gladstone Land (Nasdaq stock symbol: LAND) invests in farms and farmland. The real estate investment trust (REIT) owns approximately 75 farms and 63,000 acres of land across nine states. Its land portfolio is valued at approximately $537 million and is 99.7% leased. The farmland owned by Gladstone Land is primarily used to grow fresh fruits and vegetables, rather than commodity crops like corn, wheat, and soybeans. The advantages of fresh produce farms are higher productivity and rents. Also, there is no tariff risk since production from Gladstone farms is consumed domestically and rarely exported.

The market for farmland is highly fragmented in the United States. In addition, roughly two-thirds of American farmers are nearing retirement age, creating many farm acquisition opportunities for Gladstone Land.

Gladstone had its initial public offering (IPO) in 2013 and pays monthly dividends. Farm portfolio growth and annual rent increases have fueled 11 dividend increases over five years and approximately 48% dividend growth.

Gladstone Land Stock Price.
Gladstone Land Stock Price.

How To Invest In Farming & Buy Farmland Without Owning A Farm

Investing in farming can seem like a good strategic move for real estate and land investors. After all, whether the overall economy is in recession or booming, people still have to eat food. Because of this, many real estate and land investors regard agriculture and farming investments as being recession-proof. Furthermore, as the world’s population increases, farming will play an increasingly important role in sustaining people around the world. That said, buying a farm is not very easy for the average investor because it can require a large capital commitment and the time and cost of operating or leasing farmland is often substantial. Fortunately, real estate and land investors have many other means to gain exposure to the sector without having to actually buy a farm.

Farmland Real Estate Investment Trusts (REIT)

The closest that an investor can get to owning a farm without actually purchasing farmland is by investing in a farming focused real estate investment trust (REIT). Some examples include Farmland Partners Inc. (New York Stock Exchange symbol: FPI) and Gladstone Land Corporation (Nasdaq stock symbol: LAND).

These real estate investment trusts (REIT) typically purchase farmland and then lease it to farmers. Farmland real estate investment trusts (REIT) offer many benefits, such as providing much more farmland diversification than by simply buying a single farm, as they allow an investor to have interests in multiple farms across a wide geographic region.

Farmland real estate investment trusts (REIT) also offer greater liquidity than does owning physical farmland, as shares in most of these real estate investment trusts (REIT) can be quickly bought and sold on stock exchanges for as little as $4.95 in commissions with a stock broker such as Charles Schwab. In addition, farmland real estate investment trusts (REIT) such as Gladstone Land (Nasdaq stock symbol: LAND) also decrease the amount of capital needed to invest in farmland, as the minimum investment is just the price of one real estate investment trust (REIT) share (or less if you use a stock broker that allows fractional shares). In other words, you can become an indirect farmland part owner for less than $100 United States dollars.

How To Invest In Gold | What Are Gold Exchange Traded Funds? The Best Gold Exchange Traded Funds For Individual Investors

Gold exchange traded funds (ETFs) offer investors a great alternative to investing in the gold market. From exchange traded funds continuously tracking the price of gold, to exchange traded funds covering the global gold mining industry, gold exchange traded funds have amassed significant assets and have become extremely popular with gold investors.

Gold continues to offer good returns, and investors who are interested in owning the precious metal may consider buying shares in a gold exchange traded fund (ETF). We have chosen the top five gold ETFs based on net assets. Every one of these picks has turned in positive returns year to date (YTD). None of them pays a dividend. Read the descriptions carefully, because each of these ETFs has different types of expenses. All figures are current as of Oct. 12, 2017.

SPDR Gold Shares (GLD)

This fund buys gold bullion. The only time it sells gold is to pay expenses and honor redemptions​. Because of the ownership of bullion, this fund is extremely sensitive to the price of gold and will follow gold price trends closely. One upside to owning gold bars is that no one can loan or borrow them. Another upside is that each share of this fund represents more gold than shares in other funds that do not buy physical gold. However, the downside is taxes. The Internal Revenue Service (IRS) considers gold a collectible, and taxes on long-term gains are high.

Average Volume: 7,600,275
Net Assets: $35.66 billion
YTD Return: 10.92%
Expense Ratio (net): 0.40%