How to get started with agtech and farming investments?
in Business, Accounting & Taxes ·
Thomas Fowler84 said:Back again.
It's probably for the best that I walked away from that place.
Could an insider give me a ballpark figure for smaller plots of land out in the Midwest? Say, about 25 acres. I’ve been scrolling through listings, but the price fluctuations are wild, and as a novice, I can't tell what a fair market value actually looks like. Just a rough estimate would help.
Also, does it make sense to approach neighboring farmers to strike a deal where they manage my land for a few years in exchange for a share of the revenue? Or is that a move that requires too much blind trust? I'm looking for a way to get into Ag investment, but realistically, I won't have the bandwidth to manage it myself over the next five years.
Are there agricultural cooperatives where one can join as an investor? If anyone has suggestions, I’d truly appreciate them. I'm looking at starting with roughly $45,000—is that even a meaningful amount to begin with? This is strictly for diversification, so I don't plan on sinking more than that.
I'm reaching out to you from the Midwest, and in my neck of the woods, land goes for maybe $5,500 per acre at most. In my opinion, that’s a fantastic investment—you could easily see a massive return within five to ten years. If you’re thinking about resale, I can point to several examples—take the Finger Lakes, for instance; since Walmart moved into the area, land there is at least $7,500 per acre and nobody is selling, whereas it used to top out at maybe $2,200–$2,700. Around here, prices have been climbing steadily, peaking at around $3,300 per acre just last year. There are plenty of other cases. You could also lease the land out, which brings in roughly $160–$220 per acre annually. As for other investments, we deal with a chronic shortage of capital here, so if someone has the means, there are plenty of profitable ways to put money into agriculture.
If you're looking for advice like "just go all-in on grain and call it a day," forget it—wheat, corn, you name it—it’s simply not worth it. I personally walked away from that life last year after adding up my losses. Livestock is extremely demanding and requires constant oversight. If you want to invest in ag but can't be hands-on, stick to the land itself and find someone who actually knows the ropes. Look for a partner since capital is often tight; otherwise, just focus on your main career and when you finally have the time to commit, start small and scale up as you learn the business. The "weekend farmer" era ended about twenty years ago; agriculture is a serious business, just like any other. Best regards.