Yes another reason to seriously consider farmland investments. The premier American newspaper New York Times is out with a long and comprehensive article on the increasing stress on global food supply. They note that the rapid growth in farm output at the end of the 20th century has slowed down dramatically and that food supply is increasingly not keeping up with population growth and the rising wealth of emerging markets countries. The article foresees a need to double the food supply in the coming year to be able to feed the planet. While there reasons for optimism in certain areas, the overall tone of the article was somewhat alarming, and one can only hope that at least it serves to concentrate the minds of any policy maker who reads it. It once again confirms the wisdom of farmland as an investment - its only common sense after all that anything there is a shortage of will rise in price.
Farmland investments for retail investors are available in Australia, Europe and Africa. Purely passive investments with low minimums Contact us at info@greenworldbvi.com to learn more!
Tuesday, November 29, 2011
Saturday, November 26, 2011
Farmland Investment Returns
While doing some research into into the performance of farmland in regards to our farmland investments in Eastern Europe, Australia and Africa, we came across an amazing table on the performance of farmland investments in the United States. In 20 years, farmland investments have never lost money. Think about that - through 20 years and two major bear markets - farmland has been a safe and profitable investment. And this is only US farmland, where prices are already quite high and returns will be more modest going forward. We believe our farmland investment opportunities will pay both high income as well as capital gains. Please feel free to look at each of our investments in farmland:
Farmland Investment in Africa
Farmland Investment in Europe
Farmland Investment in Australia
These all have low enough minimums that they are acsessible by retail investors, and for those in the UK they are all approved Sipp investments.
Farmland Investment in Africa
Farmland Investment in Europe
Farmland Investment in Australia
These all have low enough minimums that they are acsessible by retail investors, and for those in the UK they are all approved Sipp investments.
Introduction to Farmland Investment
Whilst farmland investment may seem like an exotic asset class to some, there are ample reasons for investors to consider adding it to their portfolios. We are not talking about agricultural funds here, but rather about direct ownership of farmland. This blog is meant to introduce individual investors to the benefits of investing in farmland, as well as to over some options for doing so. To start with, we will list some reasons below:
1) Food prices are at record high, and farmland investing is a wonderful way to leverage this trend.
2) As a hard asset, farmland is also an excellent inflation hedge. With western central banks having already engaged in extensive Quantatative Easing (QE), and likely to engage in further QE as well, investors would be well-advised to consider adding inflation hedges to their portfolios.
3) Farmland generally pays high current income. With interest rates in the West near zero and likely to stay that way for the foreseeable future, prudent savers are being punished and are forced to look elsewhere for current income. Farmland is an excellent option.
4) Farmland is also an extremely stable asset, and adds diversification to a portfolio as it does not respond to the same factors as those which influence financial assets such as stocks and bonds. After all, land and crops do not care what the DOW or FTSE or DAX do on a daily basis!
This is just a brief overview, but we hope it serves as a basic introduction to the advantages of farmland investment. In future posts, we will go into more detail on all of these points, as well as consider whether it is possible for individual investors to invest directly into farmland.
Our firm, GreenWorld BVI, are a boutique alternative investment firm and farmland investments are by far our most popular. For UK individuals, all of these qualify as approved SIPP investments as well.
We are on the web at http://www.greenworldbvi.com and can be reached at info@greenworldbvi.com. Feel free to contact us with any questions!
1) Food prices are at record high, and farmland investing is a wonderful way to leverage this trend.
2) As a hard asset, farmland is also an excellent inflation hedge. With western central banks having already engaged in extensive Quantatative Easing (QE), and likely to engage in further QE as well, investors would be well-advised to consider adding inflation hedges to their portfolios.
3) Farmland generally pays high current income. With interest rates in the West near zero and likely to stay that way for the foreseeable future, prudent savers are being punished and are forced to look elsewhere for current income. Farmland is an excellent option.
4) Farmland is also an extremely stable asset, and adds diversification to a portfolio as it does not respond to the same factors as those which influence financial assets such as stocks and bonds. After all, land and crops do not care what the DOW or FTSE or DAX do on a daily basis!
This is just a brief overview, but we hope it serves as a basic introduction to the advantages of farmland investment. In future posts, we will go into more detail on all of these points, as well as consider whether it is possible for individual investors to invest directly into farmland.
Our firm, GreenWorld BVI, are a boutique alternative investment firm and farmland investments are by far our most popular. For UK individuals, all of these qualify as approved SIPP investments as well.
We are on the web at http://www.greenworldbvi.com and can be reached at info@greenworldbvi.com. Feel free to contact us with any questions!
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