Q So you're eating one, one day you got, oh my God, there's a, there's a revenue opportunity. I'm going to go buy this farmland. So this first one is 600 ish acres. It has a below ground irrigation, numerous wells, lots of water. You're buying it for about two million dollars. Why is it worth it to spend that money on that farm? How do you make money from this?
A Sure. So 40% of the farmland in North America is leased to farmers. This is a huge space. This is a two and a half trillion dollar vertical. So you go in, you buy the farmland, you, you lease it to the farmer, and he can either pay you a cash rent per acre, or you can participate. It's called a participating lease or a revenue sharing agreement, where typically you get 20 to 30% of the profit, or you can take physical delivery of the crop, and you can sell it yourself. So those are your Those are your two mechanisms. I always say there's yield in the field, and the way you get that yield is by charging that farmer rent, and many times farmers welcome this because to expand their empire, they want to work leased farms. Like most businesses that expand, they don't go out and buy office space, they rent it, and so many farmers are cash flow farmers. They're very keen to that, and so many, many farmers with huge operations, some own it, but many lease it,
AI assessment note: “you buy the farmland, you, you lease it to the farmer”