Why Invest in Farmland
With billions spent on Panama’s canal expansion and billions more being poured into the country’s social infrastructure, there are immense growth opportunities in the country, and its agricultural industry is still in its infancy, which provides an excellent opportunity for investment. Land has appreciated annually at a rate of 10% in Panama for many years now, and just 4% of the country’s farmable land is currently in development, providing plenty of opportunities for growth.
AgVisors handles daily operations for all of the investors’ farms, using the latest irrigation technology and ‘permaculture’ techniques to optimize sustainability and efficiency. AgVisors has over 20 years of experience managing large-scale farming operations. Their vision is to maximize profits for investors while caring for the land and the environment.
The Business Model / How Investment Works
You get full title ownership of the land, which enables you to list and sell it at any point just as you would with any other property, and the investment is backed by the actual land you have purchased.
The land is developed and managed by industry experts. You get to choose from a variety of unique crops to plant, each with their own projected yearly income. The investment provides a 70/30 share of profits, whereby the client gets 70% while 30% goes back to pay for the development of the land.
All crops are developed as USDA certified organic produce, which is better for the consumer, the environment, and the long-term value of the investment. Sustainable organic farming techniques mean long-term sustainable income for the investor.
Various Crops Available
A wide variety of crops are available for clients to plant on their land. These crops each have their own unique advantages in profitability. Among others, are unique cultivars of, limes, plantains, pineapples, mangos, bananas, and avocados. See the figures below for a detailed analysis of the 30-year profit potential for each of these crops.
The Advantages to Investment in Farmland
Investment in farmland yields high returns at a low risk for the investor. This is a type of asset that appeals to investors who want to make a good return on their investment but without the risk of losing the capital that they invest.
With an average appreciation of 3.5% per year over the last 30 years in Panama, farmland has been growing in value at a steady rate. Moreover, the world’s growing population is increasing the demand for farmland even as the supply shrinks due to expanding urban development.
The world’s population is expected to reach more than 9 billion by 2050. It is estimated that we will need to produce as much food in the next 40 years as what the world has produced over the last 10,000 years combined. As a result, farmland is only increasing in value as time goes by.
Why Invest in Organic Farming?
Organic farming produces less greenhouse gas and saves energy, so it’s good for the planet. It also leads to better soil quality, making it more sustainable, and it leads to better overall health for the consumer due to the reduction in pesticides and chemicals. This has led to a high-growth market with ever-increasing demand, which means better returns for investors. For example, the market for organic avocados grew by 31% in 2016 alone.
Why Invest With Us?
A world-leading management company, AgVisors, will be there to develop and manage your land using all of the best farming practices available today. They will be by your side to help with everything from the installation of the infrastructure, to the growth of your selected crops in a 20-acre greenhouse, to planting, harvesting, and selling these crops to local and foreign markets. They have decades of experience and a reputation for providing healthier and better products to the consumer through more sustainable practices that ensure both the future of the investment and our planet.
Organic Tropical Avocados
This is a farmland investment opportunity where the investors own the land and all of the underlying assets. As an example, one crop that investors can grow on their land is certified organic avocados. This particular crop provides a 30-year internal rate of return of 16.53%. The annual return on investment hits 21.25% after five years and almost 50% by year 20. Avocados are experiencing an ever-increasing demand, with organic avocados in particular seeing massive growth in recent years. Since 2010 the avocado industry has grown by 11% per year, a fact which has convinced even Oprah Winfrey to buy a farm. And best of all, Avocados are incredibly healthy, high in vitamins and rich in cholesterol-lowering healthy fats.