Hancock Agricultural Review 2023: Good Farmland Investment?

There are both well-established and new companies popping up to help you figure out where and how to invest in farmland. Some focus on certain regions, such as Canada or South America. Others work with specific produce, such as citrus fruits or almonds.

In this article, we provide a Hancock Agricultural Investment Group Review, which is a farmland investing platform for institutional investors. But first, let's review why farmland is a top investment vehicle.

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Why Invest In Farmland?

Farmland is one of the oldest investment classes in existence, for good reason.

Agricultural land has produced tremendous wealth for investors for generations. While it is a lucrative investment, it is also a long-term investment.

Why is farmland a strong investment? Demand is a leading factor.

The world is undergoing explosive population growth, while farmland acreage is shrinking across the country. The standards of supply and demand make farming critical.

Hancock Agricultural Investment Group (HAIG)

HAIG was founded in 1990 by agricultural pros on a mission to give investors diversified farmland portfolios tailored to both their level of risk and their return objectives. They are a fully integrated farmland investment manager, acquiring and managing properties for institutional investors.

An institutional investor is an entity that pools together money to buy securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds.

Therefore, HAIG is not presenting opportunities for individual investors to get their hand in the pie.

The group has certainly been successful. HAIG manages an astonishing $4 billion of agricultural farmland assets including public and private plans.

HAIG Farmland Investments

HAIG’s client assets are located across 433,852 acres of prime farmland in major agricultural regions including:

• California
• The Midwest
• The Mississippi Delta
• The Pacific Northwest
• The Southern Plains
• Southeast United States
• South Australia and New South Wales Australia
• Quebec and Alberta, Canada

HAIG Sustainable Farming

The group is a signatory to the United Nations Principles for Responsible Investment.

By taking this step, they pledge their approach to integrating environmental, social, and corporate governance (ESG) issues into their investment analysis.

In fact, they were an early adopter in ESG practices. They managed sustainable investment strategies in timber and farmland for more than a decade.

So, what does this mean to investors?

HAIG has pledged to preserve the development, management, and operation of agricultural lands for useful products with a commitment to:

• Conserve soil, air, and water quality
• Promote biological diversity
• Protect wildlife habitats
• Participate in vibrant, healthy communities

HAIG uses specific metrics to track, improve, and report the sustainability performance of its agriculture investments.

They manage their client’s farmland investments on a long-term sustainable basis, while at the same time actively engaging with the agriculture sector to promote and encourage sustainability outcomes.

As part of these efforts, 100% of its U.S. agriculture platform has been certified to meet the leading harvest farmland management standards.

HAIG Research Publications

All of the group’s in-house research publications are accessible to members of the public.

Here is a sampling of recent research articles:

• Rising prices are encouraging U.S. farmers to plant more row crops in 2021. The strong recovery of the U.S. economy from the COVID-19 pandemic has fueled higher price levels across a wide range of sectors in the U.S. economy. In June 2021, the U.S. economy reported its biggest inflation jump in 13 years, at 5.4% from a year earlier.
• The drought in California and potential implications for almond markets. California is currently experiencing a major drought year that represents a significant challenge to its agricultural sector. Almonds are the third-largest crop by value in the state, and California almond production represents nearly 100% of U.S. commercial supply and 80% of global almond production.

HAIG Pros

• Measurable successful results for investors
• Carefully vets all projects before offering them to shareholders
• Includes farmland from all corners of the world
• Research that’s relevant to investors and also available to the public

HAIG Cons

• Only available to institutional groups who pool their money in order to invest
• Must reach out to the company to learn more about signing up

Hancock Agricultural Investment Group: Conclusion

Investing in farmland is a smart move to diversify your portfolio.

But chances are good you don’t know anything about crop rotation, irrigation systems or shipping produce. That’s where farmland investment managers such as HAIG come in. They do their homework before selecting a specialty – such as type of product or location – and then do the hands-on work of making sure the farm is properly run to meet or exceed profit goals. All you need to do is sit back and enjoy the riches of your harvest.

HAIG reserves its opportunities for institutional investors.