Buying farmland: Weather + tax

[travelES]

What would be some good locations globally to buy farmland that not only integrates essential factors like soil, weather, labour etc, but also tax, politics etc..

Warmer weather would be preferred. I was thinking Panama, Costa Rica etc.

 

[JohnnyDoe]

Central America and humid Caribbean islands are good locations. Volcanic soil is incredible.
Local authorities are usually helpful or at least not unfriendly towards agriculture business.
You need to educate locals about modern sustainable farming practices and at the same time learn from their experience and traditions. If you integrate both in your activity it can be profitable and fun.
It’s also a good way to make friends and give back to the community as you might have to build accommodation and infrastructure.

 

[travelES]

Central America and humid Caribbean islands are good locations. Volcanic soil is incredible.
Local authorities are usually helpful or at least not unfriendly towards agriculture business.
You need to educate locals about modern sustainable farming practices and at the same time learn from their experience and traditions. If you integrate both in your activity it can be profitable and fun.
It’s also a good way to make friends and give back to the community as you might have to build accommodation and infrastructure.

Great answer. Thanks

 

[W Fish]

Depends what you want it for. If for generating income from farming, then the market has set it - ROI / ROA will be pretty much the same and chances are slim that any individual will be any wiser.
Islands can be good but then the markets will be far, etc...

 

[travelES]

Depends what you want it for. If for generating income from farming, then the market has set it - ROI / ROA will be pretty much the same and chances are slim that any individual will be any wiser.
Islands can be good but then the markets will be far, etc...

I would prefer it had the option of generating income. What do you mean by "the market has set it - ROI / ROA will be pretty much the same and chances are slim that any individual will be any wiser."?

 

[W Fish]

I would prefer it had the option of generating income. What do you mean by "the market has set it - ROI / ROA will be pretty much the same and chances are slim that any individual will be any wiser."?

I mean that where the (farm)land can genereate more income (from farming), its price is also higher. So the yield (ROI or ROA) will be pretty much the same everywhere.

The yield will be even worse in places where living conditions are good. In NZ the hobby farmers (guys who pay for the lifestyle) sector is booming.

cheers,

 

[JohnnyDoe]

On tropical islands you can have a 20% ROI on the most valuable crops. However, that’s a hardly scalable business.

 

[W Fish]

On tropical islands you can have a 20% ROI on the most valuable crops. However, that’s a hardly scalable business.

Most valuable crops are the ones that usually are ont only unscalable but also looked upon unfavourably by the authorities.
This is the exact reason for them being valuable.

 

[travelES]

I mean that where the (farm)land can genereate more income (from farming), its price is also higher. So the yield (ROI or ROA) will be pretty much the same everywhere.

The yield will be even worse in places where living conditions are good. In NZ the hobby farmers (guys who pay for the lifestyle) sector is booming.

cheers,

Where would you buy farmland if inclined? Im leaning towards Panama or the USA (now Trump won)

 

[W Fish]

Where would you buy farmland if inclined? Im leaning towards Panama or the USA (now Trump won)

I would probably buy where I lived or wanted to live/farm.
Another factor would be actual farmland/farm availability.
I have seen farming from inside in New Zealand, that is IMO a good place to live in general and probably one of the best places to farm (livestock).
Europe is bad, seen German and Estonian farming from inside a bit.
Panama sounds good although I have not even been there.

cheers,

 

[Don]

Where would you buy farmland if inclined? Im leaning towards Panama or the USA (now Trump won)

Look into India(or other low tax jurisdictions):
According to Section 10(1) of the Income Tax Act, income derived from farming and agriculture is exempt from taxes in India.

Stay far away from marxist countries if you don't absolutely know what you are doing. Otherwise, price-wise, maybe Ukraine?
In high tax Europe the whole industry is based on subsidies, dumping prices, corruption, etc.
I recall @wellington posted about the situation his family is in now in UK.

 

[Frankie]

Do you know anything about farming? Do you think you will receive a premium for the iliquidity of your investment?

From what I've heard, it's a bad investment, not liquid, depending on locals to farm your land and not steal from you (unless you intend on plowing the fields yourself).
Lots of scams promising high yields on Nut farms in Latin America/Durian farms in Malaysia/etc/etc/etc have duped countless Doomers to invest and never see their money back. Please do very deep due diligence before you waste your money on this.

The people I have seen who have done it have all underperformed the market significantly but they can at least claim they have some farmland in some godforsaken place in case all hell breaks loose. If it makes you sleep better at night, then I guess it's worth it.

 

[JohnnyDoe]

Do you know anything about farming?

That’s definitely a requirement. But it applies to every investment: you must know what you are buying with your money.

Do you think you will receive a premium for the iliquidity of your investment?

I saw farms being sold the next day they came on the market. It’s not the stock market though, so a farm can’t be defined as a liquid investment.

From what I've heard, it's a bad investment,

Like in every sector, there can be good and bad investments, you must pick the right one and be able to make it thrive.

depending on locals to farm your land

This would require a long discussion, anyway quite often immigrants work (and do it well) in farms.

and not steal from you (unless you intend on plowing the fields yourself).

It’s not so easy to steal, and you won’t get broke if they est some bananas.

Lots of scams promising high yields on Nut farms in Latin America/Durian farms in Malaysia/etc/etc/etc have duped countless Doomers to invest and never see their money back.

When it’s too good to be true…

Please do very deep due diligence before you waste your money on this.

Absolutely. You need to study and test your skills on a small scale before making any serious investment.

The people I have seen who have done it have all underperformed the market significantly

They must be suckers. If you do basic things right you are expected to achieve market performance, like in every sector.