Farmland fund manager Luke Stronach compares the historical performance of farmland against the stock market during the 1970s inflationary period.
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“If you go back to the 19 seventies, if you go back to that, that decade, if you were invested in the stock market, okay, over the decade, you would have gotten, you know, give or take about You know, 16, 17%, but you would have lost so much of your money to inflation. You know, 50% farmland over that period, depending on how you slice the data, it returned 506 hundred percent.”
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More from Luke Stronach
Insight
Stronach: Farmland investors are fundamentally water investors
“Most farmland investors beneath the surface, they're water investors. When you go out to the farm, you're looking at the, you know, you're looking at the earth, you're looking at the trees, but what you're really looking for is water.”
Luke StronachFeb 18, 2017▶ 3:12EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
AssertionNot checkable as stated
Stronach: Permanent Crop Farmland Can Yield Up to 18% Annually
“So you can get that combined yield with permanence up to 16, 17, 18% when things are going really, really, really well with your annual crops, with your things that have to be replanted every year, that's going to be corn, potatoes, onions, your yields are goi…”
Luke StronachFeb 18, 2017▶ 8:24EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
Insight
Stronach: Farmland's Main Purpose Is Volatility Reduction and Inflation Hedging
“If somebody told me that their main interest in farmland investing was to just make tons of cashflow every year, I would tell them that that is not the main purpose of it. It's main purpose is to reduce the volatility that you see in other investments, like th…”
Luke StronachFeb 18, 2017▶ 9:36EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
AssertionSupported
Stronach: Irrigated pecan orchards cost $8,000 to $10,000 per acre
“So for that type of orchard, you know, you're going to pay eight, nine, 10,000 dollars an acre, and it adds up.”
Luke StronachFeb 18, 2017▶ 3:31EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
Disclosure
Luke Stronach is developing a 1,000-acre pecan orchard for $7 million
“So the first orchard is going to be right around two million. The next orchard is going to be a couple million and then developing the thousand acre orchard all told that'll be about seven million.”
Luke StronachFeb 18, 2017▶ 3:47EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
AssertionSupported
Stronach: 40% of North American farmland is leased
“So 40% of the farmland in North America is leased to farmers.”
Luke StronachFeb 18, 2017▶ 4:42EP 574: Buying $2m 600 Acre Pecan Farm, $450/acre/mo, Literally Shaking Money From Trees with Investor Luke Stronach
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