Who is involved or wants to invest in new technologies for t
Who is involved or wants to invest in new technologies for t
Author
Discussion

AlexDoll

Original Poster:

1 posts

54 months

Sunday 13th March 2022
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I want to invest in agriculture

Sheets Tabuer

21,395 posts

244 months

Sunday 13th March 2022
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I've bought 5000 roubles, we're going to the moon

Jon39

14,911 posts

172 months

Tuesday 15th March 2022
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AlexDoll said:
I want to invest in agriculture

Good luck with that one.

There are some good videos, which might help you decide whether it is a sensible investment.

Jeremy Clarkson. ....... Bought a 1,000 acre farm. Recent annual net profit £140.
Harry's Farm. .............. Everything you need to know about how Flea Beetles and Pigeons will eat your newly planted crops.
...................................... All that spraying and fertilising. Might as well drop £20 notes on the ground.

Keep in touch, to tell us how you get on.


guyvert1

2,161 posts

271 months

Tuesday 15th March 2022
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+1 for the alignment of your full stops

Simpo Two

92,708 posts

294 months

Tuesday 15th March 2022
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What are the new technologies you/we expect us/you to invest in?

Jon39

14,911 posts

172 months

Tuesday 15th March 2022
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guyvert1 said:
+1 for the alignment of your full stops

Thank you. So very kind.

As we all know, when managing finance and investment, attention to the smallest detail is so important.

Also need to be aware, when people might be joking. ~~~ ....^.... ~~~ wink




Simpo Two

92,708 posts

294 months

Tuesday 15th March 2022
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Jon39 said:
As we all know, when managing finance and investment, attention to the smallest detail is so important
I'm seeing if I can move the decimal point in my investments one place to the right. It's not much to ask is it? Such a tiny change...

Jon39

14,911 posts

172 months

Tuesday 15th March 2022
quotequote all

Simpo Two said:
I'm seeing if I can move the decimal point in my investments one place to the right. It's not much to ask is it? Such a tiny change...

It is possible, but how long have you got ?
As you know, time is the investors friend, never repeatedly switching holdings.

If you do not have BAT in your own portfolio, take a look to see what you make of the business.
It has made a fortune for me, but that of course has nothing to do with future results.
There was over enthusiasm by investors in about 2017, but the fundamentals now are P/E 9 and quarterly dividend yield 7%.
It is a company where on down market days, the share price reassuringly sometimes moves up. I presume people heading for safety when they see worry.

The fire power with cash is impressive, involving huge numbers. They are doing another share buy back exercise at present, this time spending £2billion. Their corporate bonds are interesting. Poor old Aston Martin struggle with debt due in just 4 years, carrying interest rates between 10% and 15%. BAT have some bonds repayable in 2052, fixed at 2.25% interest!

It has been in my holdings for years, and I even bought more at £25 during the Covid crash.
Just a thought, but you study carefully first, don't just follow me, but surely it might be better than agriculture.


Simpo Two

92,708 posts

294 months

Tuesday 15th March 2022
quotequote all
Jon39 said:
Just a thought, but you study carefully first, don't just follow me, but surely it might be better than agriculture.
Ah fear not, I have no intention to invest in agriculture. Though with the price of grain shooting up, somebody is making money!

DonkeyApple

69,654 posts

198 months

Tuesday 15th March 2022
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Sunshine and wind crops are going to be yielding well now that the misery of Ukraine will be used to accelerate energy self sufficiency. No bad thing, as a small island with a big GDP we should never have taken the gamble to buy in fuel to appease the shouters.

Modest farms that struggle to produce food viably are likely to leap upon the impending relaxations and grants to produce energy of one form or another.

Mr Whippy

32,453 posts

270 months

Wednesday 16th March 2022
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Agriculture has a good market though as produce isn’t discretionary, at all.

No future tech will remove the need for food.

Once we can create food from energy, well worrying about ROI will be increasingly pointless for most.


And low margins are good. It means good competition doesn’t it?


Worry when big investors start to buy up land and remove competition/monopolise, then you’ll get some high profit investment…

DonkeyApple

69,654 posts

198 months

Wednesday 16th March 2022
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Not sure I follow that?

One of the problems with farm land in the U.K. is that it has rocketed in price due to its value as a pension asset. Hence why so many public figures own farms.

The food production element is practically irrelevant as that's just a la annoying sideline, almost pretence, to the real deal that's being done.

Jon39

14,911 posts

172 months

Wednesday 16th March 2022
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DonkeyApple said:
Not sure I follow that?

One of the problems with farm land in the U.K. is that it has rocketed in price due to its value as a pension asset. Hence why so many public figures own farms.

The food production element is practically irrelevant as that's just a la annoying sideline, almost pretence, to the real deal that's being done.

Is it correct, that a 'working' farm can be passed to the next generation free of IHT.
Attractive opportunity.

Simpo Two

92,708 posts

294 months

Wednesday 16th March 2022
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DonkeyApple said:
Sunshine and wind crops are going to be yielding well now that the misery of Ukraine will be used to accelerate energy self sufficiency. No bad thing, as a small island with a big GDP we should never have taken the gamble to buy in fuel to appease the shouters.
The shouters IMHO were the eo-warriors who dragged us into sustainables too fast. Those who have the audacity to use gas to heat their houses, and oil to make their vehicles work, are generally the silent majority who just get reamed.

Self-sufficiency yes, but you need to make energy affordable and to work reliably when there's no sun or wind. And then we have to make enough electricity to power X million EVs...

bristolracer

5,949 posts

178 months

Wednesday 16th March 2022
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German arms companies is where you need to be

They have just committed to building the third largest military in the world

DonkeyApple

69,654 posts

198 months

Wednesday 16th March 2022
quotequote all
Jon39 said:

Is it correct, that a 'working' farm can be passed to the next generation free of IHT.
Attractive opportunity.
Yup. So long is it gets Agricultural Relief. More importantly, so long as the land produces a yield it is Sippable.

The latter being the big Gordon Brown gift that drove the inflation in land values and the appearance of the celebrity 'hobby' farm.

There's also some mechanism for bringing offshore income back via farming land purchases. That was another driver for the media individuals who shoved a lot of their income via offshore vehicles.

There have been all sorts of tricks for tax management based around farmland.

DonkeyApple

69,654 posts

198 months

Wednesday 16th March 2022
quotequote all
Simpo Two said:
The shouters IMHO were the eo-warriors who dragged us into sustainables too fast. Those who have the audacity to use gas to heat their houses, and oil to make their vehicles work, are generally the silent majority who just get reamed.

Self-sufficiency yes, but you need to make energy affordable and to work reliably when there's no sun or wind. And then we have to make enough electricity to power X million EVs...
I think we all know that schemes don't have to be workable on the big table to be highly profitable on the little table. frown

Mr Whippy

32,453 posts

270 months

Wednesday 16th March 2022
quotequote all
DonkeyApple said:
Not sure I follow that?

One of the problems with farm land in the U.K. is that it has rocketed in price due to its value as a pension asset. Hence why so many public figures own farms.

The food production element is practically irrelevant as that's just a la annoying sideline, almost pretence, to the real deal that's being done.
I mean low margins mean a healthy market in something like food.
It’s hard to find big exciting investment opportunities in such a market.

Agree, APR needs tightening up so very rich people don’t just buy farms for IHT avoidance.

Not sure most farms are operating under a pretence.
Maybe if the owner is indeed super rich, but most farmers I know have their wealth in the land and that’s pretty much it.
The farming income is their income.


I’ve never understood the appeal though, for outright tax advantage, as you get 100% business relief on most businesses.

And there are just as many risks with farm businesses as there are others.

So is it just the fact it’s physical land that is finite that is also an appeal?

I often think we’re just a Corbyn or two away from farmland being nationalised any way, so not that appealing an asset.

LooneyTunes

9,373 posts

187 months

Wednesday 16th March 2022
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Jon39 said:

Good luck with that one.

There are some good videos, which might help you decide whether it is a sensible investment.

Jeremy Clarkson. ....... Bought a 1,000 acre farm. Recent annual net profit £140.
Harry's Farm. .............. Everything you need to know about how Flea Beetles and Pigeons will eat your newly planted crops.
...................................... All that spraying and fertilising. Might as well drop £20 notes on the ground.

Keep in touch, to tell us how you get on.

Given farmland near me rents for more than that per acre I have wondered how aggressive the accountants were to arrive at that number.


Edited by LooneyTunes on Wednesday 16th March 16:53

Simpo Two

92,708 posts

294 months

Wednesday 16th March 2022
quotequote all
bristolracer said:
German arms companies is where you need to be

They have just committed to building the third largest military in the world
Assuming that's third after America and China, do they plan to be bigger than Russia?

I wonder how much will be made in Germany, and how much bought from elsewhere?


I rather liked the 'Two Navies' scheme we used to operate - ie your navy is bigger than the two next biggest navies put together smile