INSIGHT GLOBAL FARMLAND: A GLOBAL STRATEGY WITH AN ACTIVE VALUE ADDED APPROACH

Call our Farmland Team on
+44 20 7321 1019

or email
Farmland

WHY INVEST IN FARMLAND?

The case for investing in Farmland is strong

Producers who are able to grow production will be rewarded:

  • Global population is expected to increase by almost 60 million a year peaking in 2050, with almost all of that growth concentrated in the developing countries*
  • The increase in the level of relative and absolute wealth in the developing countries is resulting in changing diets richer in protein and higher in calories; the required growth in production to meet this increase in demand is over 60% across the agriculture commodity spectrum
  • The growth in production has been slowing as the gains from intensification are diminishing and as agricultural is forced to compete for scarce resources

High quality land is becoming a scarce resource:

  • High quality land is under stress globally due to factors including over-intensification, pollution and climate change

Investment characteristics are potentially very attractive as an addition to broad-based portfolios:

  • Historical data suggests low correlation to other asset classes and therefore farmland offers diversification of assets
  • Farmland is an income generating asset
  • Historical data suggest that as a real asset, Farmland may provide protection in periods of  high inflation

Read more:The Economist: Investing in Agriculture

* Source: United Nations World Population Prospects, the 2010 revision

Please note the value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.