YouSaid · the spoken record

Artem Milinchuk

lines on the record: 43
first: 2022-09-23
most recent: 2022-09-23
sittings or episodes: 1
sources: podcast

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“Could yeah, and we definitely want to introduce that the question of timing, so we'll be very careful with it and intentional, and we'll be looking at what other markets exist that have that. But there's a lot of demand for it. And you could lose a bit of that buggy feature, as we said, of Farland being illiquid. It's almost like a psychological thing where you know you cannot sell. So a lot of losses happen with people. They sell at the bottom, they buy at the top from the Farmer or from hero Greed. That illiquidity portion, I think, can be nice. It's almost not, you know, when you, not that it's my kind of area I know well, but in casinos you can put yourself in like a no gamble list. And so it's a little bit like this where this markets, for example, I mean, so many of my friends, they just get so nervous and they go, which should I tell? And then it just becomes like you're working for your investment, not your investment is working for you. And here, you know, like, yes, maybe it might be a little down record. There's nothing you can do. It's locked in for.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Do for some farms, especially development and other farms, really improve returns at that additional kind of potential tax component and help us invest in larger farms that we couldn't otherwise. We are using less debt right now just because where the interest rates are, it'd still be in accretive on a lot of farms. So yeah, we probably, you won't see debt for a while.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so the minimum is typically 15,000 farm together does not invest, but the principals, so the key execs do put money in every deal. Look, it's not a lot per deal, but it's a lot to us because we still like to think of us as kind of, well, we are an early stage company, meaning that we're not paying ourselves much. We want to make sure that we deliver the value to investors first, to our shareholders as well. Oh yeah, we put money into every deal. So I've been enjoying it right now because I get this little coupons from arms I invested in and it's nice to have passive income, I tell you.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“So, soil can degrade absolutely, but land does not depreciate, and IRS even says there's no land depreciation. IRS says it, then we get, of course, land can decrease in value and soil can get depleted in this, the kind of agronomical facts. But what I mean by depreciation is the following. When you plant trees, so trees do have a certain depreciation schedule. You also, when you put up trellis, you drill it well. So there's a bunch of improvements that happen on the lens. So it's a fairly favorable treatment of those capex expenses where a lot of them can get depreciated almost 100% year one. So you can get a very nice, very quick offset for your income when you invest into a farm like that. So for people being like very smart and sophisticated about the tax planning and strategies, that can be a very meaningful additional bump that public stock just will not provide to you.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Pass through vehicle, and LLC that issues a K1. You're able to offset losses in the early years that happen when you do development. You should be able to offset them against your passive income on K1s. You get that additional benefit. It can be quite substantial, right? People pay you up to 50% marginal tax rate that you don't get with the public stocks. And then look, we also, not to be too self-serving, but we'd like to think we're really good at our job and we keep getting better and we keep using more and more technology. We're kind of the young and hungry scrappy company. So you get that passion and drive from us as well. And look, we sent also updates from every farm. It's kind of fun. You get some videos. So there's that emotional aspect to it.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“There's a number of factors. So, one is you have no say on the properties in the portfolio. You need to really be very certain that the price that you buy in the stock has is not too high because we just talked about how they can run up too quickly. You have no say over leverage. So we talk about farmland being kind of safe and stable. Well, there's one major way you could lose your money if you take on too much debt. And so what's the leverage on those farms? As well as just seeing how much like the ability to add more farms to the asset base and being able to add good farms there. So you kind of, I think because of that diversification liquidity, we feel at least that we can offer potentially a more custom solution for you where you're able to kind of choose and pick different farms. There's also some other things. This is where I have to give the obligatory. I'm not a tax attorney, consult your own tax attorney. But the farms, because it's”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Hundreds and hundreds versus one. It's really, we look at so many. We have an internal AI engine. AI is still very aspirational term, but like a fairly sophisticated tech system that allows us to continuously proactively as well as inbound, analyze, source a lot of farms. So we have a good sense of the market and do a rapid underwriting process that allows us to move much quicker or smarter on a particular opportunity. So yeah, it's hundreds.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“So we, let's see, so we don't touch cannabis just because of regulations, we don't touch dairy right now because there's so many headwinds and it's in a way not even land. And then within the crops, I mean, the certain varieties of apples that are kind of going out of business, but I can't really tell you which ones those are top of my head. The thing is like, not really. You have this fundamental issue of growing population, improving diets where everyone wants to eat like we do in US. And that is a huge lift, by the way. And then you have decreasing supply of farmland. So, yeah, there might be specific varieties, maybe geographies that kind of, you know, going down. Yeah, overall, can't even think of something where I say like, oh no, don't touch that because it's all food that we've been eating for thousands of years.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“We don't put bad deals in our platform, so we really break it down into risk return spectrum. So we show that classification and we walk you through how we think about risk. Where does it fall on the risk reward kind of spectrum we have? And so it is really while we do offer individual deals, that's just the way it's working right now. In the future, we'll have diversified portfolios. But the idea is that you would build a portfolio of many farms where you would have the low yield farms, high yield farms, you'll have your apples, you'll have your almonds, pistachios, so that you have that broad exposure to farmland. But then you can also play around with, hey, maybe you want the highest risk stuff only, right? You're young, you're risky, like 7% return doesn't sound too good to you, even though it's low risk. So we have all kinds of investors, but most investors invest in more than one farm.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“In short, yes, but if you ask me to be more specific, you would have to spend an hour just on that. I will say that in California, of course, you have the, I would say, does feel that it's less friendly to farming than it used to be. And I think sometimes for wrong reasons and misinformation, of course, like Midwest states, you know, Illinois is a great farming state. One that I want to give a shout out to is Oregon. So it's a great state for hazelnuts, great water, great workforce close to transportation and to the coast. So that's a really great scene in Washington as well. As climate change happens, you have the Columbia River, which is just abundant water for anything you want to do. And really, the weather is starting to become more and more amenable to more crops and longer growing seasons.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely risk, and that's why we need, I think, better laws and more streamlined ways to bring in seasonal workers to US, although it's working pretty good as it is, but that's a big one. And then automation, mechanization of farms. That's helping alleviate some of those issues. But also, I think the farmers we work with, they enjoy the lifestyle. They actually make quite good money. And they get to spend their time outdoors having fun. They'll have dogs, they'll fish, they hunt. I mean, whenever we go see them, kind of like when I stop staring at the screen and get out there. So there's a lot that farming and offer.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“This looks like. Yeah, absolutely. We like to say that farmland is 20 years behind real estate. And if you see at this, look at this cornucopia of real estate products and offerings. I mean, you can sell like this day. You'll be like, I'm selling a quarter share of my shower online. Everything is so a fraction like financial. And so farmland is moving in that direction in the sense that you will have a secondary mark, you will have additional financial product. We're working on some stuff right there. It's sad to see that farmers have so few options. to finance a business and think about their business from transitioning to organic expanding succession planning. And there's nothing really out there in terms of financial products that real estate has. And so there's just a lot still missing there.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Right now, we're definitely, I would say, at the sort of on the lower range of yields. A lot of what we see is like 2%, one and a half. And so that's definitely kind of on the lower side. The yields have been going down quite a bit. So I think what we'll see is either all asset classes will kind of correct or kind of stay there, but for a prolonged period of time, but look, it's hard to predict the cycles. The thing to mention about farmland is that you have two counter forces. You have the inflation that's pushing farm prices up, but then you have the interest rates going up, which any long duration asset is going to fall. And farmland, you can think of as a long-duration bond. So it's more sensitive to interest rates. So it's kind of, it'll be interesting. It's actually, we haven't had this in 40 years, like the economist in me, they have a master's in economics kind of more academic, is fascinated to see what's going to happen with this inflation, with interest rates. Like it's a fascinating time.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Top one portfolio measuring that sharp ratio, that performance, and that portfolio with farmland added did better than without farmland. And I believe we're using something like 5, 10% in the allocation. And we have this information on our website, so people can take a look. But I mean, yeah, I cannot really give investment advice on how much you should put because it's so dependent on individuals. But I hope what I said can kind of help a listener think through their portfolio.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“So, portfolio construction in general is an evolving science where before we used to have this control, your listeners know 60-40 portfolio stocks and bonds, and then at some point we started adding real estate and used to be like, oh, that's so exotic and risky in your portfolio. And now it's everything, right? The emergence of alternative investing outgoing mainstream, you know, when you stop, I like to tell this joke is that the difference between like if alternative medicine worked, it just would be called medicine. the alternative investments one day will just be called investments so the i would say to answer your question where pharma belongs in you i cannot give investment by so i'll just muse a little bit on on that there's elements of inflation bonds in farmland there are elements of real estate there are elements of timber elements of gold as well and so noveene kind of granddaddy of farmland investing did a research potentially modeling farmland performance against historical”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Kind of it's detached to the broader capital markets, which I think will benefit actually the farmers and landowners because it's really important coming back to risk volatility uncertainty to price assets correctly that don't want to get into economic theory, but it really helps everyone when your assets are priced well, fairly transparently.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“So you only compete with pension funds when you buy in really large properties. And that is the beauty of farmland market of farm together as well. So you mentioned that most land is owned by individuals. So indeed, 98% of all land in US, by acreage, by number of farms is owned by families. The market is very fragmented. Most farms are in less than $10 million in value, less than a few hundred acres. So what it means is that for large buyers like pension funds, it is very hard to build anything that moves the needle for them. That's why we haven't seen actually a lot of those players in the space yet, because they will figure it out because the asset class is just that good. So for now, what I like about this is that in a way where like front running, the institutional market that's coming in already in the space and will come where I think the whole farmland market actually in US will reprice to this diversified portfolio level versus right now it's”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“So, we would like to hold forever as well, and actually, we do have a fund that is an open-ended fund where we want to hold the land forever, but most of our deals are 10-year hold, and that's just a compromise between finding the right sort of level for our investors. But yeah, Farmland is absolutely a great investment. So, in fact, my alma mater, on Terry TJ's pension plan, has quite a sizable farmland portfolio now because they have to think in decades. duration is 70 years plus where they think about the daytime horizon.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Coming back to Buffett, Buffett also likes railroads. And we have Mississippi River is just a wonder that transportation is so cheap. I mean, it's responsible for US's what it is today. You have extremely productive workforce and farmers that are very innovative. You have the rule of law, right? No one can take that farm away. So that's super important because yes, Latin America, you're absolutely right. A lot of great countries there, great farms. Do we feel as safe about the laws and regulations there long term? Because this is a long-term investment. The only other country that I think, like two countries that we're looking at in terms of that think give similar level of safety is Canada and Australia, because we're talking about this is a safe investment, safer investment product. Nothing is safer than investment, right? But farmland is on that low risk, low return spectrum. And so we want to play it as such. We don't want to make it the boring thing you invest in from yet. US is the best for that.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“This is where we start thinking about farmland as an investment product, and so when we think about it that way, we use the real estate lens quite a bit and the analogy of real estate. And by the way, farmland, if you think of it as real estate, is the third largest real estate market. So we have multifamily, sorry, single family.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Like, no, you have to actually go to the farm and switch on the sprinklers and cover the trees because we have unusually cold weather, things like that. So there's more and more technology coming in that is making things easier to predict, to manage. And so I think farms will definitely get simpler. But yeah, I don't know if I would go as far as to say that it's a simple.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yes and no. So, on the one hand for us for farm together one of our investment products is a row crook farm where we buy it, we rent it out to someone, they pay us a fixed fee. And by the way, it's very common. So 40% of land in US is rented. And mostly it is between individuals. And then we maybe get sort of a function of a crop revenue share or a price appreciation share. So it's very, very simple for us. We pay, I think, like only a few payments a year. We get our check. We know the farmers typically, the multi-generation. And so it's that simple for us. Now, for them, it's probably quite complicated, right? And then when you go into permanent crops where you have trees and you have to take care of the trees and you have to water them, right? You have to make sure that you have the right pest control product in place. I don't know. I won't say it's difficult as any other business. And, you know, a lot of other businesses, weather doesn't play a role. Whereas here you'll be like, oh, I want to do something today.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Of scale being able to drive the tractor through huge field and make it much cheaper. So it's just physically hard. We're talking about Elon Musk and Elon Musks and thinking about first principles. There's just too much from basic physics that I don't think will in the near term at least make that sort of container growth or vertical farming a threat to the land-based farming.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I get this asked a lot and more broadly about vertical agriculture. And I think it has its place for certain uses. For example, for leafy greens, for herbs, where it's a high value product with a small footprint or where you need to be near a big city where the freshness of it and the transportation costs can be take a toll versus being able to go somewhere right in Manhattan and get you lettuce growing on the Empire State Building. I don't know. So there's definitely some benefit there, but it only plays a role at margins because at the end of the day, I always like to come back to fundamentals. So when you talk about pharma, you're talking really about free water that falls from the sky because a lot of farms in the US actually rain irrigated. Free energy coming from the sun versus having to put the right light in place. Increasingly with regenerative agriculture, it's also the vibrancy of the soil and the additional benefits that you're giving back to the ecosystem. And just like economy.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so, and I think it's even accelerating, if I'm not mistaken, because if you look in the last five years, I think, but yeah, it's urban development, it's climate change, it's not wanting to farm as much, all of those factors come into play. It's also on the flip side, you know, we do have increasing efficiency of land we use. So we are getting better and better there, and that plays a role.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“I mean, you have to think about climate when assessing farmland. And so you look kind of at high level where we will model additional water needs and water evaporating because of hotter surface. We look at things like chill hours where almonds, they require a certain number of cool weather, but not too cool. That's why California is so unique, very specific climate. And so that changes, you know, you have to move out further up north. You have things like historical things happening, Colorado River, I think for the first time had to curtail its water allocations kind of down the river, which I don't believe ever happened. So it's just, I mean, it's such a huge question that hard to answer it, give it proper time here, but in short, absolutely we pay attention to it and it's a lot of fun. It's very interesting and it's very specific to different regions and crops. And there's opportunities and challenges there.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Actually, more selling going on because a lot of the farm owners in US approaching 60, a lot of them in the 70s, 80s, and as they retire, kids don't want to farm. So you get this consolidation and turnover of farms as you kind of move land regenerations. First of all, you just get more and more heirs and then you get into kind of some of you listen, so we've seen succession, you get the same fighting for who gets to keep the farm and what to do with it between a lot of different people. It can be a mess and a lot of fun as well. So now there's more turnover happening because of that kind of transitioning in how we live, how we do the rural and urban divide and split. So the estimate is that about 70% or more of land in the US will change hands in the next 20 years.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“That you're not as reliant on bees. And with apples, you also have this interesting situation where you have different varieties coming out all the time. And if you can get on that variety and ride the train, then you actually can get some amazing margins. One of the farms we have, I mean, it's projecting margins in some years as high as 40%. So it's not going to be forever, but a few years where you get incredible returns. And then it's also, you know, it's not just the margins themselves, right, in a point of time. We're all lazy. We just want to invest and forget. Is it going to deliver those margins consistently over many years? And yes, once you plant the trees and they get going and everything is set up, it is a money for making the machine new. Some trees like pistachios last for like we don't even know how long, 40, 50 years, right? So you have this plant to tree and then for generations, your portfolio and your kids will do well from having that investment.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, and I think Michael Burry, I mean, obviously I haven't seen his portfolio, but he should have done quite well with his portfolio since the great financial crisis. So the highest margin farms would be your tree nut farms and your fruit farms, namely like apples, cherries, and organic, of course. But that is because, again, you have more risk volatility. So let me use almonds maybe and apples as an example. So in almonds, you have indeed more volatility in water. You have a fairly, like as we've seen in the last few years, the markets can be quite volatile for the almonds themselves because it's an export product, California across most of the world's almonds. And so because of that, you get higher returns. But it's a very mechanized type of farm. So you can do a lot with a few people. And there's continuously gained efficiencies in genetics, in how you plant trees. So, you know, you talk about the bees and some of the more recent almond varieties are self-pollinating meaning.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so those are the two major types the pasture land and the crop land. Now, within cropland, you have permanent crops. So this is crops that are permanent. So your trees, you know, your apples, your citruses, and then you have what's called raw crop crop or annual crops that you have to plant every year, so corn, soybeans. It's hard to say which one is better because it seems like which food is better. Well, they will play a different role. But broadly speaking, in the raw crops, you have lower risk, low return investment product that typically we target anywhere from six to seven, eight total return netroes. And that is something that is fairly stable, unlikely to lose money in the long term, unlikely to make a lot of money in the long term. We heard investors compare row crop to a mix of gold with a coupon or sort of investment-grade bonds, sometimes compare that to timber or real estate or like inflation linked bonds because”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“First of all, I want to give a shout out to not even Bill Gates, but to whoever outed him out, because in the farmland investing space, it's been a well-known secret that Bill Gates is the largest farmland owner. And then somehow it just became public and everyone knows this. Like it's really been incredible in terms of generating interest, that one fact. But Bill Gates, I think, owns something north of 200,000 acres, I believe like 230, 40,000, which sounds like a lot. And it is in the billions, not in the millions. But let me just paint a picture how tiny it is. U.S. has 900 million acres of farmland, so that 240,000 is like 0.0, and then you just, it really is around an area. So the market is absolutely huge. And that is broken down between what's called pasture land. That's where you graze your livestock and cropland where you grow crops.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Just farms, farm, farms. So there's first of all, thousands of them. You have a really good sense of your price. It is unlikely that that farm will lose its inherent asset value because that means that people stop eating corn and soy and there's suddenly like fewer people and more land. That's just not a reasonable base case. So when we talk about farmland being less risky, it's that the inherent value and ability to maintain that value long term is very, very clear. We've been farming thousands of years, probably will farm, I don't know, until we'll go to Mars or something or virtual. We're going to keep farming. And so to me, you know, when you're investing in some crazy crypto coin, like I have no. Exactly what it's going to be. So, anyway, that was a very, you got me very philosophical here, but”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“But Trey, if I can use this as a jumping point to talk about volatility as a proxy for risk. Because when we talk volatility, we kind of think risk. And I think it's funny because investing is very common sense. You and I think about risk, I think like, how much money am I going to lose? Did I get more than I put in? And then you get this Chicago PhDs and this brainy scientist that I know was one of them. And they will have this insane model on computer and say the same thing, which is basically, am I going to lose money? So Farmont, I think white flats risky is because not because of like volatility, this, that, but because risk is a function of uncertainty. All right. When you invest in something like to what extent is this uncertain? So volatility is really that uncertainty. And with land, there's been only two quarters when the index actually lost money. And when you think about it, like you invest in a corn farm in Illinois, I mean, you fly over Illinois.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Partial, yes. So there are two publicly traded farmland stocks, farmland partner in Blackdone. And indeed, we see they stock be much more volatile versus the underlying asset and the farmland index. And even what we see in our work. So it's a feature because it's more liquid indeed. And it's like it's a buggy feature because you have the stock not represented times the underlying asset. And so you are able to enter into the underlying asset at an attractive price if the markets are being too panicky. But you also sometimes don't have that ability. You can sell that stock when the price has run up too far. So look, I think in general every asset will become more and more liquid because liquidity is just us being able to trade in something. I see nothing wrong with that, right? I think more and more assets should be liquid. So as that happens, farm will absolutely become overlooked.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“COVID Q1 when everything was down, majorly farmland was also fairly flat. And during the tech boom of 2000-2001, Farmland was up when everything's down. So that's another big factor. And then the last one I want to mention for your listeners and just in general, there's a big ESG component here. So when we talk about sustainability, regenerative agriculture, water scarcity, as well as now more and more farmland actually becomes this optionality play with solar and wind. And there's a lot of things that come into play where you go from being like a farmer that wants to just extract the maximum possible field, which by the way, nothing is wrong with that, right? People have to eat to someone that is more like a steward of land where you have this additional responsibilities around carbon, around being good to the local ecosystem, as well as the local communities. So it's really, you know, when we talk about land, the reason it's so fascinating is because it's so central just to our existence.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Inflation, at least it has been historically during periods of high inflation, farming has performed very well, done better than gold equities, and that's because by its very nature, farmland is something that is inherently very hard to create. We're losing farmland. We'll talk a bit about that, and it's super basic. So when you think about inflations, really, while there's now more paper to buy the same amount of goods, well, farmland's not magically going to double, triple, and so it just has to move with inflation. Also, hundreds of farmland products actually go into the CPI. That's what we call food fuel fiber feed right it's not just cereal, it's a lot of other things that farms produce. So that's a major, major factor. Seems like inflation, we're going into recession. Well, guess what? Actually, farming has done quite well in periods of recession too. In 2007-8, it was up 20 plus percent when everything was down 50. In the latest bullish crisis we had, the fastest crisis I've ever seen, well, most people have ever seen.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely part of the thesis farmland. I think most people don't realize how good I run it has had in the last 20, 25 years. So the returns are very solid, that's true. They're also less volatile in farmland, especially if you're building a somewhat diversified portfolio. You can expect sort of high single digits, maybe low double digits, but you're not investing for 10x return. That's not going to happen. But when we think about investing and when we think about sort of how people go about meeting their goals, there's other things that farmland provides as an investment product because remember, no one invests for like the sake of investing. Everyone invests to meet a certain financial personal, organizational goal. They have pay pensions, save for retirement, safe for college. But I want more money. Although that's, you know, that is the basic idea. And so with farmland, you also have something that is extremely pertinent in these days. It is a fantastic hedge against.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“You have to make them shelf ready. And while you do that, a lot of food gets wasted, and so full harvest would connect the farms directly to buyers that don't necessarily care if the food is picture perfect. Those companies, for example, that process them and found out it's a massive business. It was a three-sided marketplace logistics, buyers, and sellers. And through that experience, well, one, I was just able to see much more the pharma side of things because before that I was looking more at the investor side, so I was able to meet a lot of great.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely. So I joined Full Harvest as its first employee, CFO and operations guy, kind of right-hand man to the founder in 2016. And it was just her and then me and then a few other people. I mean, the challenges are many. When you're trying to fix such huge problems as food waste, which is a huge problem, we waste a third of our food. And if we wasted just a quarter less, we could actually feed all the hungry people. I just keep coming back to a major, sorry, like a bigger philosophical point that we do live in a world of abundance. And it is the systems and us as people that make things scarce. Like there's more than enough on this God-given earth for everyone. So full harvest is near dear to me and the company is doing incredibly well. And just for the listeners, so the business is really take the imperfect produce that farms always have because guess what? Nature doesn't produce celery harvest in plastic bags of three.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Definitely entrepreneurship is one of the hardest things you can do, let's put it this way. And I was also that kind of investor where I was looking from outside and going, well, that's so easy. No, why don't you do this? Well, you should just go this, isn't it obvious? And then you start doing it. So yeah, it was definitely a picture, but I was able, I think for me was really fortunate is that our business is an investment business. So I was able to still use a lot of my skills to kind of make the transition to entrepreneurship a little bit easier.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely, I would say entire teachers is probably one of the best investment organizations out there. They've been around for many, many years. They returns absolutely stellar, especially given the size they have over $200 billion approaching that number. And so the way they think and work is so systematic because investing is just can be so emotional, so volatile. So it's, you know, how do you consistently generate alpha and generate good risk adjusted returns for the pensioners, the retired teachers of the province of Ontario of Canada? And it requires a lot of skill, a lot of work. And so I was very fortunate to be in that organization for a few years and to soak it in for many different great investors and people I was fortunate to commenters, friends, colleagues.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, absolutely. I think the fundamental nature of wood and land as it is connected to food is something that I'm really drawn to, especially the longer live, because you get this different waves and fats coming in and going, and we always feel like we are inventing something new. And then this time it's different. But sometimes it is different. Most of the times it isn't. And so I think it's just been really nice in my professional career with Farm Together to build it on something that is so fundamental to who we are as humans, right? We need to eat food. We have this habit. So yeah, absolutely.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT
“The kid, you kind of don't know what else is out there, so you sort of get used to it. It's really then seeing the contrast of what can actually be that I think had that profound effect. So around 91, 92, when Soviet Union felt Russia opened up, then you had an influx of goods. And then you sort of saw the difference of, you had nothing, then suddenly the shells were just beaming with so many different options like to tell I remember when I was like six, seven, I was standing in line for like bananas for two hours because they had bananas. This month. Whereas now, you know, suddenly you just go anywhere and you be like, I don't care. I mean, this bananas everywhere. It's just such an easy thing to get. And so it's, yeah, it's just crazy to think that it was all just due to different old food systems and economic systems.”
2022-09-23 · We Study Billionaires · TIP477: Recession Proof Your Portfolio With Farmland w/ Artem Milinchuk · IDENTIFIED FROM THE TRANSCRIPT