Finding the right investment opportunities, and demonstrating the effectiveness of management protocols for long-term sustainable returns, will be key
The results of our Global Farmland Index for 2019 clearly show the increasing role that restrictions in foreign investment in farmland are having on global land prices. Demand remains high, but domestic environmental and social concerns are constraining investment propositions. Investors that have been active in the farmland market may now be switching their focus to alternative methods of addressing food security concerns including agritech.
As we face a future of climate insecurity with increasing demand for energy and biomaterials from well-managed renewable resources, demand for land we think will remain high. Finding the right investment opportunities, and demonstrating the effectiveness of management protocols for long-term sustainable returns, will be key.
We believe the key areas to investigate include:
- Understanding resources in more depth – growing the right crops in the right places (land quality, soil, climate, water availability) and the opportunities offered by changing current practice and management
- Investing in technology to drive down costs, increase productivity, optimise decision-making and add value within the supply chain.
- New income streams that might include new crops and systems, ecosystems services and offsetting and adding value through processing/retailing and shortening supply chains
All this adds up to improved profitability and investment performance in both income and capital.
Read the articles within Global Farmland Index below.