Friday, October 12, 2012

Wheat Farmland Investment in Central and Eastern Europe - Great Dividends and an Excellent Hedge Against Inflation

For retail investors who remain worried about the affects of the Eurozone crisis and the potential inflationary affects of QE, now is a great time to consider farmland investments.  Farmland offers stability in times of global stress, it generally pays good dividends, and as a "hard asset" farmland is an ideal hedge against inflation and QE. So, what options do retail investors have to invest in farmland?  

We ate Green World would humbly suggest that you consider our farmland investment in Europe in wheat farmland.  The wheat crop in Russia is down, Canada is down, the US is down, meaning that wheat prices have continued their upwards trend.  Whilst one could invest in a wheat ETF (there is a pure wheat ETF on the London Stock Exchange), we at GreenWorld believe this is a big mistake as these ETFs fluctuate widely as they are manipulated by commodity brokers.  On top of that, most ETFs are issued by large banks, and, well, one must ask oneself at this point how much exposure do you really want to the banks right now??

Our European farmland investment is located in the new EU country of Lithuania.   There are some large institutional investors putting hundreds of millions of Euros into central and eastern European farmland, but of course these options are off limits to individual investors.  Why consider our farmland investment in central and eastern Europe in Lithuania?:

1)  GreenWorld's Lithuanian farmland investment is in a long time existing, large and profitable farm, meaning there is no need to cultivate new land which means less delay in your investment producing dividends. 

2) Lithuanian farmland is barely half the price of farmland in the surrounding Nordic countries, and as Lithuania and other EU countries continue to grow, prices of farmland there will gradually converge with the older EU countries.  From a longer-term capital gains perspective, this means that a 100% increase in farmland prices needed to raise land values in Lithuania in line with other core EU countries.  

3) Finally, if you are searching for secure dividends and income in a low yield environment, our European farmland investment just paid a 10% dividend yield.

If you are an individual investor and are interested to access the farmland investing asset class directly, please contact us at info@greenworldbvi.com

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