It isn't easy running a farm nor, by extension, a farming business.
Couple that with extensive year-to-year volatility, and that may well be
why there are no publicly-traded U.S. farming companies - forcing
investors to make do with input companies like Mosaic (MOS), DuPont (DD), and Deere (DE)
or crop/commodity-specific ETFs. That's really too bad, though, because
for all of the year-to-year risk and volatility in farming, the
long-term potential of land value appreciation can be considerable.
That
makes Brazil an interesting opportunity. Unlike the U.S., there are
multiple publicly-traded farm operators in Brazil, including Adecoagro (AGRO), Brasilagro (LND), Cresud (CRESY)
(which is technically an Argentine company, but gets 70% of its EBITDA
from Brazil). Last and by no means least is today's subject SLC Agricola (SLCJY.PK)
- one of the largest, most productive, and most interesting
agricultural companies in South America. While investing in agriculture
and land development is by no means for the weak-hearted, and this is a
very illiquid stock at present, the potential in these shares may be
worth the risk to some investors.
Please follow this link for the full article:
SLC Agricola - Come For The Crops, Stay For The Land
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