Farmland Investing: Permanent versus Row Crops

Chocolate or vanilla?

Gryffindor or Slytherin? 

Row crops or permanent crops? 

These are some of life’s quintessential conundrums. But while the first two questions have straightforward answers (chocolate and Gryffindor, clearly), choosing between investing in row or permanent crops isn’t so straightforward. 

Before I break down the answer to this classic investor stumper, let me lay the foundation:

In the exciting, lucrative world of agricultural investing, there are essentially two different categories of assets: Row crops and permanent crops. Let’s talk a little bit about each one: 

Row crops

Our Pineapple Farm Investment in Panama

These are crops that are planted on a seasonal or yearly basis—think wheat, barley, cotton, and corn in the U.S. or our amazing pineapples in Panama. The name “row crops” comes from the way these crops are laid in condensed, machine-planted rows. 

The best thing about investing in...

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Stock market returns from mutual fund investments fail to be lucrative

If you’re a typical investor today, now holding 70-100% of your invested capital in the stock market, then you’ve got nerves of steel or total blinders on or both. I admit the seemingly endless upward climb of the market does light up the “easy money” greed button in most of us that's hard to resist.

But, in your gut, you may also have a growing anxiety that most of these gains are not based on anything real in terms of business fundamentals; rather, they're driven by media hype, emotional sentiment, and Fed buying behind the scenes. That’s a recipe for a house of cards that can topple on a whim, as we often experience when corrections occur.

You see, often things that seem alluring and lucrative on the surface are something altogether different when you take a closer look. Like a poorly laid foundation, the tell is in the cracks and crevices (in this case, in the spreadsheets). So, let’s get out our magnifying glass and take a...

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