Quote: (04-07-2019 05:40 PM)Iconoclast007 Wrote:
Owning a small farm for personal use is a smart idea if your up for the work. Owning a small farm as a business is a hands on operation , not a passive investment . Its a career choice in addition to an investment.
Quote: (04-08-2019 03:52 AM)Arado Wrote:
In terms of agriculture investing, it's a bit of a pain to own and run a farm for those stuck in big cities. What about agriculture focused REITs?
This is
exactly what I mean about thinking outside-the-box. A farm can indeed be a passive investment. Or if you are an American living overseas and can commit about ten hours a week of management time yourself (in addition to daily farm management by a third party), you could also conceivably draw a tax-free salary up to $104,000 under the Foreign Earned Income Exclusion.
There are many options available, constrained only by your imagination and the tax code. Unfortunately, because of the recent Trump tax law, the days of holding tax-deferred retained earnings in offshore corporations are now over for U.S. citizens. This includes farms, unless you can get really creative while still complying with the tax code.
Just think about all of your assumptions and how erroneous they are. Compete against big ag. Uh, no. Grow conventional crops. Uh, no. Become a farmer and work in the fields. Uh, no (unless you want that lifestyle change). Just as a matter of logic, why would any thinking person do any of that? Significantly, all of these erroneous assumptions stem from inside-the-box thinking.
Instead of thinking about "agriculture focused REITs," how about committing to some real research and thinking about a farm management company? This is why many people do not get far in their financial life. They make assumptions based on ordinary conventions and fail to perform basic research. Even gold bugs, while contrarians, are still part of a pack with set thinking patterns. Gold and silver are great insurance, but they should be a mere complement to a true financial survival plan. You can do better. Separate yourself from the pack by educating yourselves. Learn what is out there.