Episode 164 - Investing in Agriculture with Trevor Hightower
Jan 29, 2024
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Exploring the potential of investing in agriculture, Trevor Hightower discusses the benefits of farmland investments, sustainable farming practices, and the impact of mentorship. The podcast also delves into the importance of aligning with Christ's teachings and leveraging personal talents for family and faith.
Investing in agriculture offers low volatility, positive returns, and redemptive impact.
Farmland investments provide historically strong risk-adjusted returns and promote sustainable farming practices.
Deep dives
Investing in Agriculture as a Unique Opportunity
Investing in agriculture presents a unique opportunity for positive returns and redemptive impact. Agricultural investments offer low volatility with returns comparable to the S&P 500, making it an attractive option for investors. The farmland asset class is characterized by its non-correlation with public equities and other real estate classes, driven by the increasing demand for food, fuel, and fiber amidst a decreasing supply.
Structure and Returns of Farmland Investments
Farmland investments typically offer a yield range of 4 to 6 percent from leases, along with appreciation of the asset value. Investors can choose between lease or revenue-sharing structures, each with its own risk and return profile. These investments provide a safe, non-correlated asset that offers historically strong risk-adjusted returns for investors.
Farmland Investment as a Redemptive Solution
Ownership dynamics in farmland, with a majority owned by generational farmers, present unique challenges for succession and operations. Investing in farmland supports values-aligned operators who focus on sustainable and regenerative farming practices. This approach aims to ensure continuity in agriculture, promote financial prosperity, and maintain ownership within the farming community for future generations.
Today on the show, we’re highlighting an asset class that we haven’t talked about much in the past.
Our host, Luke Roush will be joined by Trevor Hightower to talk about investing in agriculture.
The two will talk about how this unique industry brings a ton of potential for positive returns and redemptive impact. They’ll also discuss how God has worked in Trevor’s life through setbacks, mentors, and unexpected opportunities.
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