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Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments

Benedict T. Palen, Jr, is a fifth generation farmer with substantial experience in many phases of agriculture and especially with regard to soil and water conservation techniques.<br>

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Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments

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  1. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments

  2. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments Investing in farmland has soared in popularity over the past decade. Some estimates are that over $20 billion has put invested in this sector by off farm investors, whether pension funds, asset managers, or individuals looking for a position in this asset class.

  3. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments Some investors have focused on a particular subset of the farm investment universe, whether that might be almonds in California, or rice in Arkansas. While there is some merit to the idea of focusing on a certain crop, years of experience in this sector have generally demonstrated that crop diversity is a wise strategy. While the popular press might often characterize agricultural commodities as mostly moving in lock step, the reality is otherwise.

  4. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments Diversification, at least for an individual investor, can be accomplished in a couple of ways. First, an investment can be made in a public or private vehicle that has a diverse mix of crops in the portfolio. With the mix of crops often comes geographic diversity. That can provide some measure of risk against weather-related events.

  5. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments Second, the ability to achieve crop diversity for an investor seeking to buy a farm that he/she owns outright, is a more challenging, but achievable, proposition. It comes down to the proper mix of location and land price. For example, buying land in the heart of the Corn Belt is a virtual guarantee that only two crops have financial viability in light of the likely price of the land, those being corn and soybeans.

  6. Benedict T. Palen, Jr – Crop Diversity And Its Importance When Making Farmland Investments There is no one size fits approach here. It requires an understanding of one’s investment goals, tolerance for risk, and desired form of the investment (in a fund, with others, or outright ownership of a parcel of land). In the long run, a patient and thoughtful approach to investing in a diverse farmland portfolio will be financially rewarding.

  7. For More Information : https://twitter.com/BenedictTPalen https://medium.com/@benedicttpalenjr https://www.levo.com/benedict-t-palen-jr https://www.crunchbase.com/organization/benedict-t-palen-jr

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