whyFarmland?
Strong Fundamentals.
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Global scarcity of arable land.​
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Growing demand through world population growth and increasing protein consumption.
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Underdeveloped, under-invested sector lacks funds necessary development.
Diversification & Protection
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Participate in both, recurring operational revenues and land price increase.
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Low correlation with other popular asset classes.
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Currency diversification for EUR.
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Downside protection through capital preserving.
Strong Fundamentals:
Growing populations coupled with significant increases in demand for sustainable, clean sources of protein and fiber shows a solid fundamental base for future agricultural production.
Global land scarcity forcing producers into more efficient, sustainable production. Underdeveloped, under-invested sectors are lacking funds necessary for more efficient and productive systems.
Work Population to grow up to 10 m by 2050
46%
Growing protein demand will see meat & milk consumption double by 2030.
100%
Asia to become biggest agrifood consumer representing 2/3 of the world market.
100%
Diversification and Protection:
Efficiency gains
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Farm land development provides gains both short-term from an operational and development perspective as well as long term asset realization gains.
Security
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Australia has a 20 year average annual median price growth of 6.6% for farmland. (Per RuralBank)
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In comparison to Private Equity, the risk associated with farmland is significantly lower due to stable asset base.
Diversification
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Currency diversification for EUR and $ heavy investment portfolios.
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Down-side protection through capital preserving inflation hedge.