The case for agriculture is a strong one: Over the next 40 years, humans will need to produce more food than in the last 10,000 years.
Source: The Economist
Supply is not keeping up with demand, which means that institutional investors such as pension funds increasingly see farmland as a fertile investment opportunity.
Yet, it can be difficult to gain access to these investment streams with 90 percent of farms family owned and closed to capital markets. No wonder then that agricultural investment is nicknamed “gold with a coupon”.
Investors value asset appreciation and yields, with the added bonus of portfolio diversification, as farmland is uncorrelated with stocks and bonds. Land is a tangible investment in the truest sense.
While farming, like any other investment, is not without risk (weather, water access. commodity prices, political…), Mark Twain summed it up when he said: “Buy land, they’re not making it anymore.”
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