It isn't easy running a farm nor, by extension, a farming business. Couple that with extensive year-to-year volatility, and that may well be why there are no publicly-traded U.S. farming companies - forcing investors to make do with input companies like Mosaic (MOS), DuPont (DD), and Deere (DE) or crop/commodity-specific ETFs. That's really too bad, though, because for all of the year-to-year risk and volatility in farming, the long-term potential of land value appreciation can be considerable.
That makes Brazil an interesting opportunity. Unlike the U.S., there are multiple publicly-traded farm operators in Brazil, including Adecoagro (AGRO), Brasilagro (LND), Cresud (CRESY) (which is technically an Argentine company, but gets 70% of its EBITDA from Brazil). Last and by no means least is today's subject SLC Agricola (SLCJY.PK) - one of the largest, most productive, and most interesting agricultural companies in South America. While investing in agriculture and land development is by no means for the weak-hearted, and this is a very illiquid stock at present, the potential in these shares may be worth the risk to some investors.
Please follow this link for the full article:
SLC Agricola - Come For The Crops, Stay For The Land
Home
»
Adecoagro
»
BrasilAgro
»
Cosan
»
DuPont
»
Seeking Alpha
»
SLC Agricola
» Seeking Alpha: SLC Agricola - Come For The Crops, Stay For The Land
Monday, June 24, 2013
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment