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Structure, Income Distribution, and Investment Strategy in Farmland Investment
The fund structure is evergreen, offering investors the option of receiving coupon payments from lease payments annually. Investors have the flexibility to choose annual income or opt for partial or full principal redemption. The fund provides annual liquidity with a notice date in September. Majority of investors reinvest their income into buying more farmland. The fund manager actively purchases farms, with 11 different transactions totaling over $37 million year to date. Their strategy involves being local, deeply focused, and actively managing the farmland to generate alpha. US farmland is preferred for investment due to protection of principal and institutional roll-up strategy for real returns. Other investment regions are considered beta with a high risk of losing principal. The key to successful farmland investment lies in buying at a good price, renting to reliable tenants, and actively managing the assets.