Photo credit: USDA
THE INVESTMENT APPROACH OF CALVIN TAN
FARMLAND VALUES SOAR DESPITE PANDEMIC (MALAYSIA PALM OIL COMPANIES WITH LARGE LAND BANKS WILL SEE RISING PRICES DUE TO WORLD FARMLAND PRICE RISING
calvintaneng
Publish date: Sat, 14 Aug 2021, 04:39 PM
calvintaneng
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Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
FARMLAND VALUES SOAR DESPITE PANDEMIC
LOW INTEREST RATES AND THE STRONG FARM ECONOMY SUPPORTED THE RISE IN LAND VALUE, SAID THE KANSAS CITY BANK.
Fueled by strong commodity prices and continued pandemic assistance, farmland values are skyrocketing, up by 14% in the central Midwest and by 10% in the central Plains, said the Federal Reserve banks in Chicago and Kansas City on Thursday. “Government payments have buoyed the agricultural sector,” said an Illinois farm banker surveyed by the Chicago Fed.
“Farmland values for the Seventh District climbed 14% on a year-over-year basis in the second quarter of 2021 — their largest such gain in eight years,” said the Chicago Fed in its quarterly Ag Letter. “Values are expected to rise again during the third quarter of the year.”
The Kansas City Fed said farm income had grown at a fast pace from a year ago, thanks to “a sharp turnaround in agricultural economic conditions and lasting support from government programs related to pandemic relief.” Although farmers and ranchers face higher production costs, the opportunity for profit is strong. “Despite potential headwinds, bankers indicated they expected improvements in farm income and credit conditions to continue in the months ahead.”
Low interest rates and the strong farm economy supported the rise in land value, said the Kansas City bank. “The value of all types of land throughout the district was about 10% higher than a year ago, the largest increase since 2013.”
Ag lenders in Colorado and Wyoming said drought has challenged producers this summer. A banker in Oklahoma said, “The increase in land values is making it difficult for both crop and livestock producers to afford purchasing based on the amount of return they generate from production.”
While most bankers in the Chicago Fed district were optimistic about the farm sector in the near term, some were less sanguine about the longer term, given uncertainties about the pandemic, export markets, input costs, and federal support. “High commodity prices, solid yields, and PPP loans have sharply improved farmers’ finances. However, long-term risks are of serious concern,” commented one lender.
Farmland in Cygnet, Tasmania, the state with the highest rural land prices in 2020. Photo: Sheree Martin
Price of farmland soars in every Australian state and territory in 2020, report finds
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Discussions
Be the first to like this. Showing 14 of 14 comments
Malaysia Plantation sector has ESG concern...
https://www.theedgemarkets.com/article/esg-concern-outweighs-high-cpo-prices-rhb-downgrades-plantation-sector-underweight
2021-08-14 17:16
Very wrong and false
ESG concern is not the reason
E stands for Environment concern
According to Mr Shane the assist manager of ijmplant it was not the palm oil people that cut down the forest
The cutting down of forests were done by lumber companies that precede palm oil
S is for social
Most palm oil companies have Msop cert and moving on to Rsop certification
So these are not the main concerns as palm oil companies can and do improve as they move up in responsible farming just like all other farms everywhere
Now why IB bankers downgrade palm oil when palm oil is a major industry in Malaysia
The main reason is this
IB bankers issued too many palm oil call warrants to bet against palm oil
So they talk bad about palm oil to press down it's share price irrespective of what they say is the truth or not
This is very unethical and disloyal to Malaysia which is a major palm oil producing country
2021-08-14 18:14
I live in Singapore and SEE the fuller picture
There is no ESG issue in Indonesia
See Indonesia Palm oil shares are in bull run
https://www.indonesia-investments.com/business/indonesian-companies/salim-ivomas-pratama/item570
2021-08-14 18:27
Singapore Goldenagri also up 70% from 14 sen to 24 sen
See
https://sgx.i3investor.com/servlets/stk/e5h.jsp
2021-08-14 18:32
SEE NEWS FROM JAKARTA, INDONESIA
THEY ARE THE ONES TELLING THE TRUTH (NOT MALAYSIA DIRTY IB BANKERS THAT SUBVERT PALM OIL)
Palm Oil Set For Bull Run After Indonesia Supply Plateau Nears
JAKARTA: A palm oil bull run could begin with Indonesia’s production decelerating, even before palm oil output plateaus by 2021.
http://mpoc.org.my/palm-oil-set-for-bull-run-after-indonesia-supply-plateau-nears/
2021-08-14 18:42
Even Singapore don't even have Palm oil, rubber or sugar cane plantation is giving bullish news on Palm Oil
What is wrong with Malaysia IB Bankers & Media reporting neutral and downgrade ?
https://www.businesstimes.com.sg/keywords/palm-oil
2021-08-14 18:57
Plantation land becoming more valuable due to increasing populations & limited supply loh!
go for it!
Palmoil due for rerating mah!
Just Buy Mah!
2021-08-15 10:14
Right now excessive US dollar flooding every corner of this globe, couple with historic low interest regime by FED. Worse still is Malaysian ringgit is heading south non-stop.
US dollar now at 4.235 ringgit and RMB is at 0.662 sen.
All commodity prices set to go higher due to weakening US dollar, including palm oil.
2021-08-18 09:41
Yes ks55
Long time didn't hear from you
You retired happily
Yes if Cpo can sustain for more years then we can sit back and collect steady streams of dividends
I got whataspp friends who bought Palm Oil shares now hoping to retire on it happily
2021-08-18 22:46
CPO price trend trails soybean oil since it's the closest substitution. Any substantial price gap between CPO and soy oil will be filled up through shifting in demand. ESG does not has much impact to the CPO prices.
Therfore, tracking soy oil price is as good as CPO price in mid and long term.
2021-08-18 23:41
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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THESE 5 GOT BIG ACRES OF PLANTATION LANDS
From 200,000 Acres to 2 Million Acres.
1) FGV
2) SIMEDARBY PLANT
3) TAANN
4) TSH RESOURCES
5) THPLANT
6) JAYA TIASA
7) BOUSTEAD PLANT
Note: Singapore Land Mass is only 180,000 Acres. All of the Above Own Plantation Lands bigger than the Size of Singapore
2021-08-14 17:00