#7 - Farmland Partners (NYSE:FPI)
The last agricultural stock on this list is Farmland Partners (NYSE:FPI). This is one of only two publicly traded real estate investment trusts (REITs) that provide exposure to farmland. As of this writing, Farmland Partners owns approximately 155,000 acres of high-quality farmland in 16 states. The company also offers loans to farmers.
Owning and owning farmland is becoming a big business. In Illinois, farmland values are up 18% year over year, and the same is true in neighboring states such as Indiana (30%) and Iowa (29%).
Still, investing in FPI stock will require believing that growth will continue. Analysts are forecasting single-digit revenue growth over the next five years. That may not get investors excited, but that is projected to translate to an average gain in earnings per share of over 30% in that same time frame.
FPI stock is up 8% for the year, and it pays a quarterly dividend that currently pays out 24 cents per share on an annual basis.
About Farmland Partners
Farmland Partners Inc is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas.
Read More - Current Price
- $12.55
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $15.00 (19.5% Upside)
Investing in agriculture allows investors to take advantage of opportunities in the present and in the future. With more attention being paid to sustainable agriculture methods, digitalization, and autonomous technology, this is a sector that offers something for growth and value investors alike.
If individual stock picking is not your thing, you can consider investing in an ETF that provides broad exposure to this sector. One choice is the iShares MSCI Agriculture Producers ETF (NYSEARCA:VEGI). One of the benefits of this ETF is that it is not investing in the commodities themselves, which can be the case with many ETFs in this sector. As such, it's more suitable for long-term investors who are looking for capital growth over time.
If you're an experienced investor with a high risk tolerance and who understands the volatility of the commodities market, you could consider the PowerShares DB Agriculture Fund (NYSARCA:DBA). This fund invests directly in futures contracts and ranch commodities.
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