Friday, 7 September 2012

Farmland Investments and Farmland Funds Should Soar in Value

As any of our blog readers know, we at GreenWorld are huge believers in investing according to global macro trends.  GreenWorld believes that it is best to identify global trends, and then ride the way as these trends develop.  One of these global macro trends is the continued high food prices.  If you look at the chart below, you can see that the food price index has more then doubled in the past 12 years.  This due to a number of reasons, one of which is clearly the shrinking arable land in the world.  Global population is increasing whilst arable farmland is decreasing, and supply and demand alone dicate that farmland should increase in value.

Smart investors such as a number of hedge funds as well as the legendary commodity investor Jim Rogers have taken advantage of this situation by establishing farmland funds.  There are a number of farmland funds focused on African farmland, where the low price of land provides the scope for both large dividend payments as well as plenty of opportunity for the long term increase in the value of the land. It is important emphasize that these farmland funds involve DIRECT OWNERSHIP OF FARMLAND, i.e. they are not financial funds in any sense of the world.   Of course, many individuals who recognize the opportunity in direct farmland investments will say to themselves, "this is all well and good, but these big farmland funds are just for institutional investors and the wealthy".  Luckily, this is no longer true!  GreenWorld is at the forefront of rolling out a number of investment opportunities that are focused on direct ownership of farmland and target retail investors due to the very low minimums they require.  Below are GreenWorld's two core farmland investments.  Please contact us at if you are interested in further details:

Farmland investment in Africa

Farmland investment in Europe