Is a Farmland Investment Fund a Match for Your Operation?
Where will a fund fit into a landowner’s goals?
Every operation is different. For instance–do you own land without a solid succession plan? i.e. the next generation is not interested in continuing ownership? If so, perhaps one of the funds would provide the opportunity to liquidate the land ownership but continue farming the land with a long-term leaseback.
Do you want to liquidate a smaller parcel at these land values while keeping that land in the operation?
Would you like to sell some existing parcels to perform an exchange into additional land that is “on your radar”?
Are you expanding your certified organic operation, and in search of a long-term owner interested in a long-term lease?
These are only a few examples of when and how an investment fund could fit into your long-term plans. The overriding challenge is to match your goals with the correct investment fund. Every fund has different criteria, different philosophies on investments and different experiences in their investments. Therefore, it requires the knowledge of those funds’ criteria, their decision process and familiarity of their personnel to correctly match them to a farmer’s goals.
That experience working with the funds is where Manges Realty Inc can be an important part of a landowner’s selling process. We have worked as an employee of some investment funds, so we know their investment process. We can assist with analysis of the ROI that those funds will use in their decision. We can assist with various lease arrangements that will protect the farmer but still provide the high ROI required.
If you have any goal of expanding your operation, exchanging land or otherwise liquidating a land parcel or two, call us. We would be glad to assist with some initial analysis and investigate the possibility of involving one of the many farmland investment funds.
