Farmers’ fields in Brazil and Argentina are among the most prized assets in a new global market for agricultural land that has sprung up alongside soaring commodity prices. Private equity and fund managers at a farm investing conference in Geneva named South America a top place to buy, lease and manage agricultural lands for profit.
Bankers and fund managers are scrambling to build up rural expertise in response to rocketing investor demand to buy entire farms as an inflation hedge. Investment funds worldwide have put an estimated $15 billion to $20 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as
Pricey commodities have made U.S. farmers less dependent on government aid, but the European farm sector still faces the risk of disruption from subsidies being phased out, agriculture investors said Nov. 10. Tim Hornibrook of Australia’s Macquarie Agricultural Funds Management said that price-skewing farm assistance was unlikely to disappear entirely any time soon, given concerns
Water scarcity will generate big returns for the irrigation sector once climate change and population growth take their toll on farming, private equity managers said Nov. 9. Asked at an agriculture investing conference whether it is possible to make money from water, typically a public good rather than a bankable commodity, Judson Hill of NGP
“Even in this current economic crisis, where demand for most products is dropping fast, demand for organic products continues to grow.” Demand for organic foods will keep growing despite the world economic crisis, creating an opportunity for farmers in poor countries, the United Nations’ trade and development agency said Feb 9. In a research note,
“This is not the leadership we require from key economies at this point in time.” – Cairns group statement Canada, Australia and their farm trade allies called on Brussels Jan. 28 to repeal its decision to offer subsidies for European Union dairy exports, saying the move could drive down world prices and hurt poor farmers.