Investing on the land

[Strelok]

I would like to ask to the guys here if they have any knowledge or opinion regarding investing money on the land market.

Im not talking about the estate market, Im actually talking about buying pieces of land and use them for different purposes, from agriculture (see bio foods etc) or livestock breeding.

The reason for this is that I find hard to trust any other form of investment here in Europe especially after this greek mess that threats to take down all Europe country by country right after Greece.

Any idea is welcome kept in mind that any country has different law so we can keep this general.

 

[Julius_Seizeher]

Well, I always compare what we're going through now to the 1970's. The only thing missing is the extreme inflation and interest rates they saw back then, but everything else is the same.

And back then, land and metals were the only places anyone put their money. Today, gold is $1600 an ounce and here in the midwest, farmland is going for $6000 an acre. These prices are crazy high, $6000 an ACRE for farmland? Think I'll hold out on that one for awhile...

See, the economic mess of the 70's greatly abated in 1980 and after a recession in 1982, the economy came roaring back. BUT in the early 80's, the farmers who had bought land during the 70's (with the sky-high grain prices and interest rates) lost their asses and you could go around buying farmland for pennies on the dollar.

I don't say that we are in exactly the same circumstances as back then, but there are a great many similiarities, and when I see generic farmland going for $6000 an acre, I'm content to sit on the sidelines and wait for better prices. Coincidentally, that is my ultimate goal: make money in the markets then use it to buy a farm when sanity is restored to land prices again.

 

[Gaucho]

No doubt about it, agribusiness is going to be one of the absolute best business over the coming decades. Although commodities broadly are still at extremelly inflated prices, so there could a lot more explosive downside to come depending on the situation in Europe and whether the US can drag itself out of the mire and get themselves back to trend growth speed which is looking ever so less likely, particularly into Q1 2012.

 

[Bible_Belt]

Im actually talking about buying pieces of land and use them for different purposes, from agriculture (see bio foods etc) or livestock breeding.

Do you have any background in agriculture? If not, it might be easiest to simply buy the land and lease it out. A lot of farmers might be uneducated hicks, but that doesn't make what they do easy. People who haven't farmed tend to think it is much easier than it is.

Greenhouses are my interest right now. I've been building my first one lately. Farming is more fun indoors.

 

[Strelok]

Do you have any background in agriculture? If not, it might be easiest to simply buy the land and lease it out. A lot of farmers might be uneducated hicks, but that doesn't make what they do easy. People who haven't farmed tend to think it is much easier than it is.

Greenhouses are my interest right now. I've been building my first one lately. Farming is more fun indoors.

That was actually my plan, buy the land (already have the money) then put some hillbilly doing the job and share the gains.

In this phase Im evaluating if that can be done, if so I will evaluate what to grow if food or vegetables used to procude fuel.

Point is European union has a different legal system than the usa, so sometime they punish you because according to them you are "rich" (according to their socialist standard) while sometime they make special tax discounts if they think your business will grant a gain to the place.

Anyway for the law thing Ill ask around here, regarding the feedbacks I get here they are always welcome despite this being a dj board many wise men post on it in money topics.