Rising Real Estate Investment Sector
Outperformed commodities over the long term
and provide an inflation hedge in recessionary times
1- RISING REAL ESTATE INVESTMENT SECTOR
THE CASE FOR INVESTING IN FARMLAND
The importance of farmland in terms of global food and energy security, environmental sustainability and economic growth is unequivocal and continues to attract considerable interest from around the world. Farmland values, on average across the globe, have outperformed commodities over the long term and provide an inflation hedge in recessionary times.
2- GLOBAL POPULATION INDEX AND THE FUTURE DEMAND
WITH A RISING GLOBAL POPULATION AND GREATER CONCERN OF CLIMATE CHANGE, THE LONG-TERM IMPORTANCE OF FOOD AND ENERGY SECURITY IS EXPECTED TO CONTINUE WITH A RESULTING INCREASE IN DEMAND FOR PRODUCTIVE FARMLAND.
Indeed, many agents believe the outlook for UK farmland values is buoyant with Savills predicting average growth of about 8 per cent for the year 2020. Ian Bailey of Savills Research is of the view that “In the UK, the investment performance of farmland and forestry has outperformed all other assets over the past 10 years.”
3- WORLDWIDE FARMLAND PERFORMANCE
IMPORTANT FACTS
Farmland is a strong performing asset and investors are attracted by the capital appreciation and the potential to maximize farming returns through management intervention, particularly in the emerging markets.
4- GLOBAL FARMLAND VALUES OUTPERFORM COMMODITIES
FOOD IS THE NEW OIL. LAND IS THE NEW GOLD
Farmland is a strong performing asset and investors are attracted by the capital appreciation and the potential to maximise farming returns through management intervention, particularly in the emerging markets.
5- A CLEAR INTEREST BY GOVERNMENTS AND INVESTORS
FARMLAND CONTINUES TO ATTRACT CONSIDERABLE INTEREST FROM GOVERNMENTS, GOVERNMENT-BACKED INVESTMENT FUNDS AND PRIVATE INVESTORS.
£15 Billion+ investment to be made by a supermarket giant “Lidl” in British food, farming and production over next 5 years. President of the National Farmers Union, Meurig Raymond said “money invested by government into UK farming is money invested wisely. With the right trade and labour conditions, this sector could deliver an even greater return to the country.”
6- THE FINAL VERDICT
FARMLANDS: CULTIVATING THE BEST RETURNS
The rising demand for a foreseeable future predicts that the farmland investment will become most attractive asset class to hold. The current outlook for farmland is driven by long-term positive supply and demand fundamentals that point to appreciation of both agricultural commodity prices as well as the land assets that produce. Evidently, farmland investment is very easy and profitable, enabling private and corporate investors to achieve high returns with asset security.
