Tim Hammerich

News Reporter

This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.

Farmland has long been a safe place to invest because it is scarce, productive, versatile and fairly liquid. Yet in recent years, prices have far exceeded what the average farmer can afford to farm profitably. Communications strategist Vance Crowe believes that Bitcoin, which shares similar characteristics to land, could actually displace farmland as a better place to store capital long term.

Crowe… “So far, we have found that people say, Hey, I’ve got a bunch of money. I don’t wanna necessarily put it in the stock market. I don’t wanna buy bonds. I don’t wanna buy art. I don’t wanna buy real estate in Manhattan. So what I’m gonna do is I’m gonna take that money and I’m gonna put it into land because it’s finite. But the downside of this is now the prices of land have gone up way beyond what we would call the utility price. The utility price is how much money can you make farming that land. Well, many people that are holding their money in land don’t actually care. What they want is the fact that that’s a finite asset that’s gonna hold value. Well, that’s been true all the way up until now where there’s an analog that you can say, I want that finite nature that land has, and I’m going to hold the value of my money in Bitcoin. I’m not saying this will happen really quickly, but it will happen at some point. And as more and more people realize, wait a second, I can get the value that you get from land. It’s scarce, but I don’t have to pay all these other fees, then they’re gonna start holding their value in Bitcoin, and it will make the price of land return to its utility value.”

Crowe believes in the future Bitcoin actually has the potential to de-monitize farmland for these reasons.