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Farmland is historically a great investment. Owning it can be very profitable and through REITs centered on farmland, it's very easy to start taking advantage of it. My favorite REIT in this sector is the Gladstone Land Corporation (LAND).Farmland is a pretty low risk investment to make as the need for it is obvious, but it hasn't always been an easy investment to get into. In order to do it, one has to find land suitable for farming and buy it then either do all the work themselves or find someone else to do it for them and handle that business themselves. That's what makes REITs like LAND so appealing to me. I want the advantages of owning farmland without having to do all the work that it takes.
LAND currently trades at an $808 million dollar valuation. As of August 9, 2022, they own 169 farms and 115,000 total acres. They own farmland in 15 states so far. They offer a dividend yield of 2.36% which is amazing in my opinion. At an $808 million dollar valuation and 115,000 acres of farmland in ownership, that's a cost of around $7,000 dollars an acre.
LAND has a beta of .84 which means the stock is less volatile than the market itself. It's a good stock choice for one that doesn't want to deal with as much market volatility but is looking for a good investment for dividends. That said, it is down around 30% YTD, which I believe is a good opportunity for new investors.
I think that farmland is a great investment choice for many people, and I believe LAND is one of the best ways to take advantage of it without buying the land themselves. That said, LAND does possess some problems. They're debt has been a major strain on their earnings leaving them having to issue new shares to maintain their dividend.
There are not many Farmland REITs out there, but one other one is called Farmland Partners Inc. It offers a lower divided, and I personally like LAND better as an investment, but its another REIT for farmland investors to consider.
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