- The farmland REIT Farmland Partners has skyrocketed in value over the past year due to its economic resilience and skyrocketing agricultural commodity prices.
- Many billionaires such as Bill Gates have also been aggressively buying farmland.
- Agricultural commodity prices may continue to rise, but this is causing inflation to increase which may have a negative impact on capitalization rates.
- FPI is currently just above the $12 fair value estimate I gave it a year ago and is trading almost exactly at its estimated net asset value today.
- With FPI at its fair value, it is no longer a value opportunity but remains a decent long-term buy-and-hold investment due to its economic resilience.
For further details see:
As Billionaires Buy Farmland, Individual Investors Buy Farmland Partners