How to Generate Income From Farmland Investments By Capitalizing On the Need for Increased Global Food Production

Shrinking arable land - rising population

In a previous post, we discussed how arable land globally is shrinking, whilst population skyrockets. The world is set to add another billion people, whilst we are simultaneously losing 75 million acres of farmland per year through degradation, industrialization or development. That is a stunning figure, and presages serious crises in the future around food and farmland. Indeed, it may not be going too far to say that farmland may be the "new gold", an asset with the ultimate value.

That’s why private equity hedge funds are purchasing large tracts of land to profit from the macro trend of shrinking arable farmland. Money managers such as Jim Rogers are setting up farmland funds left and right, and institutional investors are purchasing these farmland funds in droves. Its' very simple really - when you have an asset that is shrinking in quantity whilst increasing in demand, the price trend over the long-term is sure to be up!

The great thing about farmland is that its' an investment where you can own an asset of true economic value, and, in a world of near-zero yield, generate additional income.  Whilst every farmland fund or investment we at GreenWorld are aware of targets institutional investors, GreenWorld is pioneering the development of farmland investing projects that specifically target individual investors.  So yes, if you are worried about generation income, and looking for an asset that is not correlated to stocks, then you have the opportunity to invest in farmland just like institutional investors.  Best of all, our projects have low minimum investing requirements, and are purely passive investments where the project manager does everything from planting, to harvesting to the sale of the crops all for you.  We have farmland investing opportunities in EUROPE, AFRICA and AUSTRALIA.  Please contact us to learn more at info@greenworldbvi.com.

Another Large Investor Creates a Farmland Fund

Institutional investors continue to establish farmland funds

Following up from our previous post on institutional investors investing in farmland, GreenWorld have also discovered that Schroders Plc, the U.K.'s largest publicly traded money manager, developed a 250 million-pound ($480 million) farmland investment fund to invest in farmland around the globe, as prices for agricultural land have continuously risen along with with gains in the underlying commodity prices such as wheat.

Farmland is enjoying its biggest revival in 40 years as investors including Jim Rogers, George Soros and TIAA-Cref bet that farmland as an investment will offer high dividends, appreciation in the price of the farmland, and an excellent way to hedge against possible future inflation due to QE and all of the new money printed.

GreenWorld is proud to offer the following agricultural land investment:

African Farmland

European Farmland

Australian Farmland

Please contact us at info@greenworldbvi.com if you might be interested to discuss further.

GreenWorld's High Yielding African Farmland Investment Continues to See High Demand

As interest rates continue to stay at rock bottom levels in the West, investors are increasingly turning to alternative investments such as farmland to obtain higher yields then those available in traditional savings accounts.  GreenWorld's farmland investment in Africa has continued to see high levels of demand due to this trend.  For those who may be interested, below is a summary of the african farmland project:

1)  Invest from as little as £11,250 for five acres.  Smaller investment levels may be possible in some circumstances.

2)  Estimated 12-15% annual dividend income income  In fact, the last harvest produced an average return of 14% on investment.

3)  A tangible asset held in your own name removing any default risk.  Investors will own the lease to their land – and be allocated their own field providing the investor with security.

4)  A project that is supported and accredited by the Sierra Leone government at the highest levels.

5)  So far, 1,200 acres have been cultivated.  The land is ideal for rice production but is underdeveloped and high yield farming has not been utilised in the past.  The introduction of advanced agricultural technologies has now dramatically increased the productivity - and profitability - of this farmland.

6)  The project is committed to assisting the local population through employment, food, health and education support.

7)  ALL - repeat ALL - of the rice crop is sold locally, thereby providing food security in Sierra Leone.

Please contact us at at info@greenworldbvi.com to learn more.

Wheat Farmland Investment in Central and Eastern Europe - Great Dividends and an Excellent Hedge Against Inflation

For retail investors who remain worried about the affects of the Eurozone crisis and the potential inflationary affects of QE, now is a great time to consider farmland investments.  Farmland offers stability in times of global stress, it generally pays good dividends, and as a "hard asset" farmland is an ideal hedge against inflation and QE. So, what options do retail investors have to invest in farmland?  

We ate Green World would humbly suggest that you consider our farmland investment in Europe in wheat farmland.  The wheat crop in Russia is down, Canada is down, the US is down, meaning that wheat prices have continued their upwards trend.  Whilst one could invest in a wheat ETF (there is a pure wheat ETF on the London Stock Exchange), we at GreenWorld believe this is a big mistake as these ETFs fluctuate widely as they are manipulated by commodity brokers.  On top of that, most ETFs are issued by large banks, and, well, one must ask oneself at this point how much exposure do you really want to the banks right now??

Our European farmland investment is located in the new EU country of Lithuania.   There are some large institutional investors putting hundreds of millions of Euros into central and eastern European farmland, but of course these options are off limits to individual investors.  Why consider our farmland investment in central and eastern Europe in Lithuania?:

1)  GreenWorld's Lithuanian farmland investment is in a long time existing, large and profitable farm, meaning there is no need to cultivate new land which means less delay in your investment producing dividends. 

2) Lithuanian farmland is barely half the price of farmland in the surrounding Nordic countries, and as Lithuania and other EU countries continue to grow, prices of farmland there will gradually converge with the older EU countries.  From a longer-term capital gains perspective, this means that a 100% increase in farmland prices needed to raise land values in Lithuania in line with other core EU countries.  

3) Finally, if you are searching for secure dividends and income in a low yield environment, our European farmland investment just paid a 10% dividend yield.

If you are an individual investor and are interested to access the farmland investing asset class directly, please contact us at info@greenworldbvi.com

Pension Funds Are Turning to Farmland as an Alternative Investment

Pension funds are investing in farmland

According to an article in the online investing magazine INVEZZ, UK pension funds are increasingly turning to agriculture and farmland, as well as other alternative investment.  The article notes that pension funds are increasingly turning to commodity "real asset investments":

Investments in alternative commodity assets, such as timber investments, farmland investments, agriculture and energy projects, are gaining popularity amongst UK pension funds seeking portfolio diversification, Simon Fox, a principal in Mercer's investment consulting business, said for Reuters. According to him, the global financial crisis in 2008/2009, which caused significant losses in equity-heavy portfolios, marked the turning point for pension funds and spurred them to seek portfolio diversification. Seeking alternative investment options, clients of the consultantcy firm were introduced to real assets and commodities which have since started increasing in popularity.

This is good news for investors who are considering investing in farmland, as it proves that farmland as an investment is on a upward trend globally, not only by individual high-net worth investors but by large big money institutional investors as well.  For retail investors in GreenWorld's farmland projects, this mean there is the opportunity to be on the right side of a global trend. GreenWorld is proud to offer the following agricultural land investment:

African Farmland

European Farmland

Australian Farmland

Please contact us at info@greenworldbvi.com if you might be interested to discuss further.