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World Renown Investor Jim Rogers gives his view on Farm Land Investments over the next 30 years

By Carolyn Cui from the Wall Street Jornal

Agricultural prices have been rallying for several years now, but Jim Rogers thinks there’s still room to grow.

The commodities investor said on Tuesday that he is still bullish on agriculture, calling it a great place for investors to be for the next two decades.

Prices of agricultural commodities are still relatively cheap compared to those of metals and energy, and the world is scrambling for arable farmlands to feed a growing population, Mr. Rogers told a packed audience at the Global AgInvesting conference, at the Waldorf-Astoria Hotel in New York.

However, how to ride on the agricultural bull run remains a tricky issue.

The most profitable way is to invest in commodity futures, but it is not a game for everyone given the extreme volatility and high capital requirements — “unless you know what you’re doing,” Mr. Rogers said in an interview with the Wall Street Journal on the sidelines of the conference.

Short of becoming a farmer, investors can benefit from buying a commodity index product, investing in currencies of agricultural nations and even getting a piece of farmland, Mr. Rogers said. As for individual commodities, investors might want to pick those that are off the most from the highs, he said.

Farmland has become a popular asset class among investors. By owning a piece of agricultural land, investors expect to see cash flows based on the proceeds. But it requires a big upfront investment and is not exactly liquid. To fill that void, many farmland investment companies are being set up to attract those who want a piece of the land but don’t want the hassle of hiring farmers, planting or irrigating. Dismissing the bubble talk surrounding farmland investment, Mr. Rogers said the investment idea is probably “in its third inning.” He is on the board of such a company, Genagro Ltd., which farms in Brazil.

Mr. Rogers knows firsthand that attracting investors to agriculture is not an easy task. A commodity vehicle launched in 2009 by Mr. Rogers and Macquarie, an Australian bank, to bet on China’s growing demand for agricultural products closed down after failing to attract enough investor interest, he said.

Mr. Rogers is one of the most highly-regarded commodities investors, and made a fortune when he co-founded the Quantum Fund with George Soros in 1973.

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Comments from our readers

2 Comments
  • 02/05/2012

    James “Jim” Rogers was born in Oct. 19, 1942 and grew up in Demopolis, Alabama .Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendry investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%. They ran what is considered to be one of the first truly global macro hedge funds. . In 1964 he got his first job on Wall Street at Dominick & Dominick in the summer between high school and Yale University, that’s how he got his first experience with stocks and bonds. He immediately fell in love with the job. After Oxford, he returned to the U.S. and joined the army in 1970 he returned to Wall Street, working again with Dominick & Dominick. That same year he joined Arnold S. Bleichroeder, where he met George Soros, and together founded the Quantum Fund. This has opened a new era of global macrotrading and inspired numerous imitations and spin-offs. In the book “Money Masters of Our Time,” Jim Rogers writes about that time “the most important thing in my life was work. I did not do anything until I had completed my work.” To emphasize this professional ethic , it is good to remember that he did not made any holiday for ten years. In 1980, Jim Rogers has decided to “retire” at 37 years. Since then he has spent much of his time traveling and supporting the causes of philanthropic and taking on many high profile roles in the media. However, he continues to be an active investor and media commentator

  • 29/04/2012

     What an interesting video. I have passed it on to a number of friends.
     
     
     
     
     
     
     

    LindaMcRae