Farms are fast becoming a portfolio staple for investors worldwide 🐮🤑
PLUS BONUS PREMIUM CONTENT YOU DON'T WANNA MISS 🤩
Hey Money Makers,
While everyone's obsessing over Bitcoin and AI, I just uncovered a deal that'll make your jaw drop…
Here’s the quick hits:
Farmland investment up 231% (2008-2023)
Big players: Gates, Wonderful Company, Malone
New platforms letting retail investors play
The Digital Land Grab: How Smart Money is Buying Farmland Through Your Phone 📱
The AcreTrader Play 🧑🌾
Think Robin Hood, but for farmland:
Buy shares in farm LLCs
5-10 year investment windows
Passive income from rent
Managed by pros
🌍 Why VCs are pouring in:
JD Vance invested $65K
Peter Thiel backing
Expansion to Australia
Zero management headaches
🚨 The Hidden Risks
Not all sunshine and roses:
Driving up local land prices
Pushing out actual farmers
Short-term leases = less sustainability
Limited to row crops and timber
💰 Smart Money's Angle
The real reason billionaires want in:
Reliable appreciation
Inflation hedge
Cash flow from rents
Water rights (the next gold)
🎯 How to Play It
Two approaches:
Direct via platforms
AcreTrader
Min investment varies
Managed properties
Built-in tenants
Alternative plays
REITs for liquidity
Diversified crop exposure
Water rights focus
Supporting infrastructure
While everyone's chasing tech unicorns, the real money's in digital farmland platforms. But watch the risks.
Remember - when VCs and politicians are in the same deal, pay attention.
BONUS SAMPLE FROM CASH COWBOYS PREMIUM MEMBERS NEWSLETTER
Quick truth: Everyone's talking about farmland, but the real money's in water rights.
It’s story time 📚
Bullish on Water: How One Company is Making Millions Off America's Drought Crisis 💧💰
Today we're diving into what might be the most overlooked opportunity in American business right now: water rights. And trust me, this isn't just another commodities play – we're talking about a masterclass in market arbitrage that's happening right under our noses.
The Multi-Million Dollar Water Play You've Never Heard Of🚰
Let me paint you a picture that'll blow your mind:
A company called Greenstone Resource Partners bought 485 acres of farmland in tiny Cibola, Arizona for $9.8M
They just flipped the water rights to that land to a Phoenix suburb for $24M
That's a cool $14M profit without developing a single thing
But here's what makes this truly fascinating: they're the first company to successfully pull off this type of Colorado River water rights transfer.
Think of it as creating a new market from scratch.
The Playbook 📗
How They Did It
This is where it gets interesting.
Greenstone's strategy was brilliant in its simplicity:
Strategic Land Acquisition
Purchased land through a subsidiary called GSC Farm LLC
Kept operations quiet by initially leasing the land back to farmers
Built a portfolio of 25+ subsidiaries across the Southwest
Influence Building
Got their VP elected to the local irrigation district board
Used a two-votes-per-acre system to their advantage
Leveraged existing district policies that allowed water transfers
Big Money Backing
Secured funding from MassMutual and its subsidiary Barings
Got public pension funds involved
Obtained financing from Rabo AgriFinance
Why This Matters: Market Opportunity 🌏
Here's why you should care:
Colorado River water has declined 20% since 2000
States are deadlocked over conservation plans
Water rights are now selling for $11,500+ per acre-foot (and rising)
Fast-growing cities are desperate for water security
The Bigger Picture: Market Dynamics 💹
"Colorado River water is going to become more valuable than owning oil in this country at this stage." - Rhett Larson, ASU Water Law Professor
This isn't just about one deal. Greenstone and competitors like Water Asset Management are:
Acquiring thousands of acres across Arizona
Building portfolios in strategic locations
Creating new water transfer mechanisms
Essentially becoming "water banks"
The Business Model Innovation ⚡
What makes this truly brilliant is how Greenstone positioned itself:
They're technically a farming operation (reduces resistance)
They're a water rights broker (main profit center)
They're a water infrastructure developer (adds legitimacy)
Risks & Opposition 🚩
Like any good opportunity, there are challenges:
Legal challenges from counties and states
Environmental impact reviews
Local community resistance
Regulatory uncertainty
The Bigger Business Lesson 🎓
This is a masterclass in:
Finding value in overlooked assets
Creating new markets
Building strategic influence
Patient capital deployment
Regulatory arbitrage
What's Next? 👉
Watch this space. We're likely to see:
More private equity moving into water rights
New water transfer mechanisms developing
Rising prices for water rights
Increased competition for agricultural water
The Bottom Line 💰
This is exactly the kind of asymmetric opportunity I love. It's:
Based on a critical resource
Driven by unchangeable trends (climate change, population growth)
Has multiple profit centers
Creates first-mover advantages
Here's a pragmatic breakdown of potential approaches to the water rights market:
Research & Education First
Study your state's water rights laws and regulations
Connect with water rights attorneys for legal guidance
Take courses in water resource management
Join water conservation boards or districts in your area
Subscribe to water rights newsletters and industry publications
Market Analysis
Identify regions with high-priority water rights
Research areas with growing populations but water scarcity
Study historical water rights transfer prices
Track municipal water needs and development plans
Monitor drought conditions and climate projections
Entry Points (from lowest to highest investment)
a) Professional Services Route:Become a water rights broker
Work as a consultant for water transfers
Provide legal or technical services in water rights
b) Investment Route:
Invest in water-focused ETFs or public companies
Join water-focused investment groups
Partner with existing water rights holders
c) Direct Acquisition Route:
Start small with shares in irrigation districts
Look for distressed agricultural properties with water rights
Form partnerships with farmers looking to lease water rights
Risk Management:
Never invest more than you can afford to lose
Diversify across different water sources and regions
Maintain strong relationships with local communities
Keep updated on regulatory changes
Have contingency plans for legal challenges
🚨 Important Cautions 🚨
Water rights are highly regulated and complex
Local opposition can be significant
Legal challenges are common
Environmental reviews are required
Long-term holding periods may be necessary
Significant capital is usually required
Returns are not guaranteed
I recommend starting with education and professional networking rather than jumping straight into acquisitions.
The water rights market requires deep knowledge, strong relationships, and careful navigation of legal and social considerations.
Remember:
The best opportunities often come from seeing value where others see problems.
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The California Water Play 💧
Raw numbers:
Almonds use 28% of CA agriculture water
Water rights worth more than land
Farms without water rights = dead money
Properties with rights = appreciation play
🧠 The Strategy Smart Money's Using
Target properties with senior water rights
Kings River access
Pre-1914 rights
Drought-resistant locations
Avoid properties without guaranteed water
No reliable access
Junior rights
High risk of removal
🌍 The Environmental Arbitrage
Here's what platforms won't tell you:
Quick profits > sustainability
Water-intensive crops preferred
Short-term gains > long-term viability
Climate risks ignored
🚨 The Real Risk
Think bigger than crop yields:
Climate change accelerating
Water restrictions incoming
Drought frequency increasing
Food security threats
🎯 How to Play It Smart
Two approaches:
Senior water rights focus
Established access
Historical precedence
Multiple water sources
Sustainable operations
Drought-resistant crops
Water-efficient systems
Long-term viability
While everyone's chasing farmland, the real alpha is in water rights. But remember - quick profits today might mean dead land tomorrow.
When investment platforms push water-hungry crops in drought zones, ask yourself who's winning.
Until next time,
Jason Allan Scott
P.S. Quick disclaimer: This isn't investment advice.
Always do your own research and understand the risks involved in any investment.
💡 Key Takeaway: The next gold rush isn't in crypto or AI – it's in water rights. But unlike previous resource plays, this one is about market creation and regulatory navigation as much as it is about the resource itself.