Agriculture investments and farmland investment are an excellent way to benefit from global commodity price increases and an excellent inflation hedge. The advantages of farmland as an investment are substantial. The price of many agricultural food crops have risen substantially, and as this article in the Financial Times (free registration required) explains, these price increases are again causing substantial political unrest.
As the graph from the UN demonstrates, the amount of arable land worldwide is dwindling. Simultaneously, the world’s population is forecast to jump to more than 9 billion by 2050 from 6.9 billion today.
As the graph to the right shows, the world’s population has exploded, while the amount of available arable farmland has contracted sharply. These facts alone constitute a compelling argument for investing in farmland.
As we noted, GreenWorld believes that it is important for any green investment to be on the right side of world macro trends. When it comes to global investments, the “trend is indeed your friend”.
To meet growing global food demand the United Nation’s Food and Agriculture Organization estimates an extra six million hectares of additional farmland investment is needed every year for the next 30 years. Whilst there are certainly agricultural funds available, these agricultural funds still invest in individual stocks, and as such remain vulnerable to upheaval in financial markets; therefore, GreenWorld believes that the theme of farm land as an investment can be achieved outside of financial markets.
As with those considering forestry investments GreenWorld believes that the agriculture investments theme is best achieved not through agricultural funds, but rather through direct farming investments where the investor actually owns farmland directly. We are not advocating that you become a farmer, but rather believe that the advantages of farm land as an investment are not achieved through ownership of farmland stocks or agriculture funds. Rather, GreenWorld allows our clients to access farming investments by pooling together a number of individual investors’ capital to purchase a large parcel of land for farming investments. Then land is divided into individual parcels to allow for direct farmland investment.
GreenWorld current offers offshore investments in two agriculture investments:
Both of our farmland investmentsare highly socially responsible investments that take account of the interest of the local population whilst still offering the prospect of both yearly dividends and increases in the capital value of your land.
Please contact us if you are interested in farming investments.