Michael Burry, who some consider to be the best investor in America, stated
“Transporting water is impractical for both political and physical reasons, so buying up water rights did not make a lot of sense to me… What became clear to me is that food is the way to invest in water. That is, grow food in water-rich areas and transport it for sale in water-poor areas, I believe that agriculture land – productive agricultural land with water on site – will be very valuable in the future.”
Farmland investing has outperformed every asset class historically including S&P 500 and gold.
Savvy investors and self-directed IRA's are pouring money into farmland which has historically outperformed almost all asset classes.
During the last 5 years farmland prices have increased considerably. The war in Ukraine, which is considered the bread basket of the world has caused food prices to skyrocket, in turn increasing the price of farmland. Global warming and weather catastrophes have all contributed to the price of good farmland to increase.
Now, if we add in the future uses of farmland such as renewable energy projects and carbon sequestration, there is potential for farmland to show investors returns that are more in line with high risk assets. As more farms are destroyed by floods and fires, food prices could continue to climb, increasing crop cashflow and farm values annually. The American Farmland Trust estimates that the country is losing 2,000 acres of farmland per day.
So the next time you wonder why billionaires are buying up as much farmland as they can, this article may give you all the answers.
But first, we want to introduce you to a company called Source Agriculture Corp. “Source” invests in farmland and strives to be America's largest farmland company.
The Financial Star is dedicated to bringing unique investment opportunities to our readers, who typically do not have access to pre-IPO investments.
Source Agriculture's Regulation A offering has been qualified by the US Securities and Exchange Commission (SEC) to allow investors to become shareholders. You will see all necessary links under the 'resources' section at the bottom of this article to the SEC website that will validate this information.
The Source Ag. offering is IRA eligible. IRA custodians that are hosting Source Ag's investment offering are viewable at the bottom of this page. Cash investors can simply 'click to invest' and invest through the online portal or can simply call Source Ag's toll free line and a representative can take the investment manually over the phone.
Many investors ask themselves the question, "How did early investors of companies like Facebook and Google learn about the pre IPO investment opportunity, and why did I not have access?"
Investors could achieve market-beating returns if they had access (like Wall Street) to investment opportunities, prior to a company's IPO.
The Financial Star is working with Source Agriculture to bring our readers a pre-IPO opportunity, that is real estate backed with blue sky potential.
Source is a private Nevada company that investors can buy shares in, prior to its goal of listing on a stock exchange. This is a very rare opportunity and we urge readers to strongly consider it.
The barrier of entry to buy a farm is too high for most, until now, with “fractionalized ownership” through the purchase of shares in a company, like Source Agriculture.
Source intends to purchase farms that in addition to crops will have wind turbines and/or solar farms.
This is a new revenue stream for farmers that most investors are unaware of. Wind turbines (depending on size) can generate a farm owner up to $80,000 per turbine installed on its property. Most farms can handle multiple wind turbines generating healthy returns for the farm owners.
This income is in addition to its crop revenue as wind turbines do not interfere with crop production.
This adds considerable revenue to a farmer’s bottom line. Renewable energy companies pay farmers via a triple net lease to host wind turbines on their land while sharing in the revenue of each kilowatt of power produced.
In order to meet Americas aggressive climate change goal, America needs large amount of flat land that has a lot of wind…Farmland is the perfect solution and more wind and solar farms are being built in Americas mid-west weekly.
With inflation raging globally, one asset class that has been appreciating every year for the last 5 years is farmland. We believe farmland is one of the most stable asset classes available on the market.
It has outperformed gold as an inflation hedge as it has real utilitarian use, being food production, carbon sequestration and renewable energy projects.
Traditional farms average an annual yield of 11%-13% between cash flow and land appreciation. This does not take into account revenue that can be achieved by adding in wind turbines and solar farms.
Additionally, carbon credits are expected to be the most lucrative revenue stream estimated to generate $1,000,000 in revenue for every 1000 acres owned by 2030. Currently farmers are getting paid approx $100,000 per 1000 acres and this amount is expected to increase 10x by 2030.
We estimate that Bill Gates' 269,000 acres of farmland he recently purchased could generate up to $269,000,000 annually from carbon credits alone.
In addition to revenue streams increasing dramatically from farmland , we believe that there will be an inflection point where the actual intrinsic value of farmland will skyrocket in value once massive climate disasters wipe out more fertile ground in America from drought, storm and disease.
Other inflection points would be a war or US de-dollarization globally, which we believe is unavoidable at this point.
If any of these events occur we believe that equity markets, banks and other asset classes will be exposed to downside risk, while farmland will increase in value, resembling what happened when Russia invaded Ukraine; removing a tremendous amount of wheat, corn, sun flower oil and other commodities off line.
Farmland historically has outperformed the S&P 500, Nasdaq, Gold, Real Estate and Timber.
Below are charts that shows that value of farmland against all other asset classes. It beats them all.
We believe the entry point of getting into this investment class is now before more pressure pushes the price of farms higher.
Currently there are only two farmland REITS in the US and both are publicly traded. Both farmland REITS are trading on the NYSE over $10/ share. Source Ag being a farmland investment company is currently offering its shares at $2.
Source Agriculture's Regulation A offering has been qualified by the US Securities and Exchange Commission to raise up to $75M at $2 per share. The majority of the capital will be used to acquire more farmland and grow the existing land portfolio as fast as possible.
Experts believe the US dollar will lose its reserve status as the world currency in the near future but farmland will grow in value while other publicly listed US companies in other asset classes like technology could possibly lose value when this happens
The BRIC countries (Brazil, Russia, India, China, South Africa) have already been in discussion of either having a basket of currencies or China's Yuan being the world’s new reserve currency.
China has already successfully tested settlement with their new digital currency. It is only a matter of time.
If this happens the US dollar may lose value and Americans would have to get used to a lower standard of living.
By putting your money in farmland, it may allow investors to hedge against a decreased standard of living.
While other companies will cut their dividends, we believe some farmland investment companies could increase dividends as the price of food goes up.
Many countries friendly with the US and are becoming warmer every year and will not be suitable for agriculture.
With climate change raging, the US Midwest with some of the richest farmland and water resources in the USA, could produce food to ship to these counties. This would possibly allow Source Ag's investors to benefit from this potential revenue via dividends paid directly into their bank account.
> Shares can be purchased securely via the online portal below. Call Source Agriculture if you have questions or would like guidance through their investment process. Self-directed IRA funds are accepted.> Shares can be purchased securely via the online portal below. Call Source Agriculture at +1 (888) 777-7409 if you have questions or would like guidance through their investment process. Self-directed IRA funds are accepted.
Carbon sequestration and carbon credits have become a new business with farmers at the forefront profiting from it.
Soil carbon capture or sequestration happens when plants capture and store, or “sequester,” atmospheric CO2 in the soil.
In this market, farmers or ranchers can sell a carbon credit to investors or large companies like Amazon for every metric ton of carbon that their land sequesters.
Source intends to implement sustainable farming practices on their farm holdings to be eligible to sell carbon credits. The market for carbon credits is projected to grow 50-fold within a decade, from nearly $2 billion in 2022 to nearly $100 billion by 2030, and as much as $250 billion by 2050, according to Morgan Stanley.
The carbon market creates new revenue streams for farmers that were not there before. This incentivizes them to transition to sustainable farming practices and adopt regenerative agriculture.
This can be done voluntarily (as offsets) to meet their emissions reduction goals. Farmers can sell credits to entities in the regulatory market (cap-and-trade system) with reductions mandated by laws.
Many climate investors are focused on strategies to stop global warming. They are missing a larger and more important part of fighting the climate crisis, which is ways to initiate global cooling.
Humans need a strategy to figure out ways to begin to bring down global temperatures, and we believe one of the best ways to do this is to capture carbon in soil.
This is why we believe carbon credits from farmland are going to be one of the largest industries in America and may be the reason why billionaires globally are buying up farmland at an unprecedented rate.
The preferred water investment strategy by people like Michael Burry is buying farmland in particularly water-rich areas. One of the most important use cases of water is agriculture, particularly for foodstuffs like meat, seeds, nuts, as well as textiles like cotton. Water is a fundamental productive commodity that is the figurative fuel powering industrial agriculture.
“Water is the oil of the 21st century.” Andrew Liveris, CEO of DOW Chemical Company (quoted in The Economist magazine)
We know water is the source of life. But it can also be a source for portfolio diversification. Like gold and oil, water is a commodity—and it happens to be rather scarce nowadays and the crisis is only getting worse. So, as with any other scarcity, the water shortage creates investment opportunities.
Many regions of the United States could see their freshwater supply reduced by as much as a third, warn scientists. Of all the freshwater basins that channel rain and snow into the rivers from which we draw the water we rely on for everything from drinking and cooking to washing and cleaning, nearly half may be unable to meet consumers’ monthly demands in the future. This will mean serious water shortages for Americans.
A recent alarming issue that is just the beginning of the water crisis is coming to light. In what might be a harbinger for the housing boom in the American West, Arizona began limiting approvals for new developments within the Phoenix area.
A study found that around 4% of the area's demand for groundwater, close to 4.9M acre-feet, cannot be met over the next century, threatening to dampen the explosive development that has made the city one of the fastest-growing metropolitan regions in the country.
Besides the groundwater crisis, Arizona has also faced significant shortages of its surface water allocation, with a recent deal cutting usage from the drought-stricken Colorado River.
Majority of the world's water is not used for drinking, but is used for growing food.
As climate change becomes more fierce, farmland within water rich regions will be invaluable as countries are stricken by drought and fire.
The only sector that will receive the remaining water available will be farmland, as humans will still need to eat.
This could make water rich farmland one of the most sought after commodities on earth. It may be more valuable than any other commodity available today.
This is the reason why 'Source' is aggressively raising capital to purchase as much farmland as possible within water rich regions.
Many may ask, why not just buy an existing farmland REIT that is already trading publicly?
Many of the farmland REITs today have not purchased farmland with drought and climate change in the forefront of their investments.
They have existed for many years when these issues were not so prevalent.
These existing REITS did not purchase farms close to substations that are suitable for renewable energy projects.
They have bought farms with class c soil that is no longer eligible to receive carbon credits because of the degraded soil quality.
Existing farmland REITS today have leased back the land to farmers who will simply not adopt sustainable farming practices, which again will not allow them to be an eligible farm to receive carbon credits.
Source is purchasing farms with a forward looking vision not just focused on the production of food but keeping these other future issues in the forefront of every purchase.
Source Agriculture recently acquired a 158-acre farm situated in Macon County, Illinois with a high productivity index of approx. 139.
This is the type of acquisition that we discussed earlier in the article that we believe gives Source an advantage among their peers, as their personal relationships in the farming community extend throughout the US. This allows investors to become shareholders of farms that would be extremely difficult for individuals to acquire.
The farm is in close proximity of substations and transmission lines. Source AG anticipates increase in cash flow from the installations of a renewable energy project on site. Additionally, Source will be working with the operator to begin transitioning to sustainable farming methods to eventually begin sequestering carbon and sell carbon credits.
Source has signed an operating agreement with one of the most reputable operators in the County to farm corn and soy bean with top of the market rent being paid.
This is exactly what Source disclosed it was set out to do and it is great to see them executing the plan they set forth.
> Shares can be purchased securely via the online portal below. Call Source Agriculture at +1 (888) 777-7409 if you have questions or would like guidance through their investment process. Self-directed IRA funds are accepted.> Shares may be purchased securely via the online portal below. Call Source Agriculture if you have questions or would like guidance through their investment process. Self-directed IRA funds are accepted.
Source Agriculture's goal is to raise approximately $75,000,000 privately through its Reg A, followed by an IPO on a stock exchange. Source Ag. has raised millions through institutional financing and existing shareholders. As Source Ag disclosed on its form 1A, it may list its shares on a stock exchange.
We spoke to the company and the NASDAQ is their preferred stock exchange where the minimum listing price on the NASDAQ is $4.
Both accredited and unaccredited investors can invest at $2 into Source Ag.
Reg A allows people of all wealth levels to invest in this opportunity.
The process is simple and can be done by clicking the "Invest Now" button in the box to your right. You'll be presented with a form to provide the standard information required by the Securities and Exchange Commission for you to be able to invest in a Reg A fund. It takes just 10 minutes to fill out.
If you would like to speak to a live rep, you may click the blue button: "Call Source Toll Free" in the navigation bar to display Source Agriculture's 1-800 phone number. They would be happy to answer any of your questions and guide you through the investment process.
The process is simple and can be done by clicking the green "Invest Now" button in the navigation bar above. You'll be presented with a form to provide standard information required by the Securities and Exchange Commission for you to be able to invest in a Reg A fund. It takes just 10 minutes to fill out.
If you would like to speak to a representative from Source Agriculture, you may call them directly at +1 (888) 777-7409 and they would be happy to answer your questions and guide you through the investment process.The process is simple and can be done by clicking the "Invest Now" button in the navigation bar. You'll be presented with a form to provide standard information required by the Securities and Exchange Commission for you to be able to invest in a Reg A Fund. It takes just 10 minutes to fill out.
If you would like to speak to a live rep, you may click "Call Source Toll Free" in the navigation bar to show Source Agriculture's 1-800 phone number. They would be happy to answer any questions and guide you through the investment process.
We would invite you to invest in Source Agriculture at $2.00 a share pre-IPO.
Source is a forward-looking company that is keeping the objectives and challenges of the future at the forefront of all investments it makes.
Investors may realize a liquidity event if Source AG decides to list its shares on a stock exchange.
If Source decides to list its shares on the NASDAQ and issue dividends, investors that bought shares at $2 privately will realize a higher rate of return (dividend %) than people that buy the shares at $4 or higher on the Nasdaq. This will possibly allow for long term elevated income by investing privately at $2 vs buying the stock on the public market at $4 or higher.
We urge investors to visit sourceagriculture.com to learn more or e-mail [email protected] to send any questions you may have electronically.
Self-direct your investment using the secure online portal below.
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Financial Star News Inc. (TFS) By accessing this website and any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy. This website is operated by Financial Star News Inc, which is a marketing firm hired by Source Agriculture to market their Reg A.
Investment opportunities accessible through this website include offerings made in reliance on the registration exemptions provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), Rule 506 of Regulation D promulgated thereunder, Regulation A, or under Section 4(a)(6) of the Securities Act and Regulation Crowdfunding thereunder. Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by Rialto Markets. Rialto Markets is the broker dealer for this offering. Investment opportunities listed on this website are intended for investors who do not have a need for a liquid investment. Investments listed on this website are speculative in nature and involve a high degree of risk. Past performance is not indicative of future performance and the value of an investment may go down and result in partial or total loss of your investment. Investors who cannot afford to lose their entire investment should not invest. Neither the SEC nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through this website. All securities listed on this website are being offered by, and all information included on this website is the responsibility of, the applicable issuer of such securities. Financial Star News Inc. does not verify the adequacy, accuracy or completeness of any information, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offering listed therein. In making an investment decision, prospective investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved, and are strongly encouraged to consult with their tax, legal and financial advisors.
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The Electronic Fund Transfers Agreement and Disclosure is the contract which covers your and our rights and responsibilities concerning the electronic fund transfers (EFT) services offered to you by Source Agriculture, Rialto Markets and Koreconx. In this Agreement, the words “you,” “your,” and “yours” mean those who sign up on the Koreconx Online Platform (Platform) and utilize the Platform to invest in Source Agriculture. The words “we,” “us,” and “our” mean TFS and Source Agriculture. The word “Account” means your membership on the Platform, for which you have been vetted and confirmed as a valid and authorized user, and through which you make investments from your bank account into investment vehicles facilitated by Source Agriculture, BUT IT DOES NOT REFER TO YOUR BANK ACCOUNT. Any reference to your bank account will be referred to as such. Electronic fund transfers are electronically initiated transfers of money from your bank account, which you utilize the platform to initiate, and which allow you to invest in the offering. By using any TFS service, you agree to the terms and conditions in this Agreement and any amendments for the EFT services offered.
Source Agriculture typically utilizes credit cards, wires and ACH. ACH (Automated Clearing House) is a system used to transfer funds electronically between the accounts of businesses and individuals. ACH automates common transactions and replaces the slower and more cumbersome paper-based system of checks, drafts, deposit and withdrawal slips, and other forms of money transfer. ACH is efficient, low-cost, and a safe means of conducting financial transactions. Because all transactions are initiated and processed electronically, ACH is significantly less expensive and more efficient than paper-based systems. ACH is also less expensive than wire transfers.
