I recently saw someone point out that one of the most consistently good performers is farmland, Yet I cant find out how to invest in it directly? I see there's Farmland Partners (NYQ:FPI) but is there a UK equivalent?? or am I just best to invest in corn/beans etc?
I looked into this a while ago and couldn't find any UK listed Investment Trusts or ETFs pointed at Agriculture. Very strange but I guess people prefer the latest 'shiny objects' Vs agriculture.
One way to gain exposure to this sector is to just buy the fertilizer companies, that sector is out of favor i.e. fairly cheap on a historical basis, see chart below. (Mosaic Co (NYQ:MOS) , Nutrien (TSE:NTR) ,Yara International ASA (OSL:YAR) ,Intrepid Potash (NYQ:IPI) , Icl (NYQ:ICL) ,K+S AG (ETR:SDF) etc).
You can also buy the large agricultural companies such as Wilmar International (SGX:F34) ), Bunge Global SA (NYQ:BG) , Archer-Daniels-Midland Co (NYQ:ADM) etc.
The best value for money right now in my opinion is Wilmar International (SGX:F34). Note that Singapore equities have no withholding tax unlike the US listed companies. Wilmar has massive exposure to all of Asia especially China and India, Archer Daniels own about 20% of Wilmar (*last time I checked).The Chairman of Wilmar has been buying millions of dollars worth of the stock on the open market and the price has been moving back up but it is still very cheap if you look under to bonnet.
