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How could investors benefit from an agricultural land acquisition?

How could investors benefit from an agricultural land acquisition?

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Grace Tang
 

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Farmland investment is fundamentally an acquisition of properties, which could be constituted by leasing cultivatable land to tenant farmers and acquire a fixed income periodically based on the specifications in Contract Farming Agreement (CFA). Another investment method would be actively participating in growing stock. Investors would be significantly benefit from farmland acquisition by avoid volatility in financial market, farmland investments present opportunities to bypass the risks that normally associated with financial assets. The reason that farmland investment be able to hedge the risks more effectively is primarily due to the value of farmland is driven by the demand of agricultural commodities, unlike the constantly shifting financial market, the demand of agricultural commodities is considered to be never diminishing.

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