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Purest hedge against Irish Agri land values?

  • 10-08-2019 9:34am
    #1
    Registered Users, Registered Users 2 Posts: 867 ✭✭✭


    Im planning on selling farmland next year but things are looking super shaky.

    Are there any good hedges I can take (that’s available through Degiro) that would help me de-risk Irish land price drops (agri, outside of Dublin).

    Any ideas greatly appreciated folks.


Comments

  • Registered Users, Registered Users 2 Posts: 1,036 ✭✭✭greenfield21


    What are you asking here? How much do you have to invest?


  • Registered Users, Registered Users 2 Posts: 867 ✭✭✭stainluss


    What are you asking here? How much do you have to invest?

    Thanks for your response.

    I'm asking for securities or derivatives that have with a negative correlation with agri land prices in Ireland.

    I am expecting income from a land sale next year but if the price is shot down or the market becomes illiquid and it can't sell I'd like to have income from another source.

    I'd be willing to invest up to E20k. I'm not expecting income from this hedge to match the full potential loss, just to cushion...


  • Registered Users, Registered Users 2 Posts: 838 ✭✭✭lucky john


    stainluss wrote: »
    Thanks for your response.

    I'm asking for securities or derivatives that have with a negative correlation with agri land prices in Ireland.

    I am expecting income from a land sale next year but if the price is shot down or the market becomes illiquid and it can't sell I'd like to have income from another source.

    I'd be willing to invest up to E20k. I'm not expecting income from this hedge to match the full potential loss, just to cushion...

    Did you consider planting the land? (min 20 acres )

    that may be the best hedge for you. You will have zero costs and a taxfree dividend for 15years. You can still invest the 20 grand and have a nice tax free pension grow at the same time. The land can be sold for 3.. 4000/acre in the furure if you are still around


  • Closed Accounts Posts: 4,007 ✭✭✭s7ryf3925pivug


    lucky john wrote: »
    Did you consider planting the land? (min 20 acres )

    that may be the best hedge for you. You will have zero costs and a taxfree dividend for 15years. You can still invest the 20 grand and have a nice tax free pension grow at the same time. The land can be sold for 3.. 4000/acre in the furure if you are still around
    Plant with....

    a hedge?


  • Registered Users, Registered Users 2 Posts: 6,737 ✭✭✭Tombo2001


    I don't think you will find anything that resembles a close hedge to Irish agri land prices, being honest.


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  • Registered Users, Registered Users 2 Posts: 1,435 ✭✭✭TiGeR KiNgS


    Why not sell the land today ? And see if you can write in a buyback option on the contract. Probably not worth it though for the figures your looking at. E20k is laughably low to hedge.


  • Registered Users, Registered Users 2 Posts: 1,581 ✭✭✭Voltex


    Plant with....

    a hedge?

    ...waiting for the "ba-dum tish"!!


  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    stainluss wrote: »
    Im planning on selling farmland next year but things are looking super shaky.

    Are there any good hedges I can take (that’s available through Degiro) that would help me de-risk Irish land price drops (agri, outside of Dublin).

    Any ideas greatly appreciated folks.

    You hardly think a tiny market like the Irish agricultural land market has a wall st tracker instrument of some kind?


  • Posts: 24,714 ✭✭✭✭ [Deleted User]


    Farm land prices are fairly strong at the moment despite brexit etc, even poor land is selling at reasonable prices. What is making you think it will drop?


  • Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Farm land prices are fairly strong at the moment despite brexit etc, even poor land is selling at reasonable prices. What is making you think it will drop?

    Well it's artificially propped up for one


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  • Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    Long an uncorrelated asset with no exposure to Irish Ag or euro/sterling.

    Beyond Meat.

    Or, just a regular, unhyped US company that produces similar e.g. Regus actually makes money while Wework is a farce.

    What % return are you hoping for to offset a price drop?


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