Friday, March 8, 2013

Investing in Farmland - Global Institutional Investors Join the Parade

Swiss Fund Adveq latest to invest in global farmland
As we discussed in a number of previous posts our blog - here and here - institutional interest in farmland continues to grow. Now, we see another article come out about this trend. In an article entitled "Pension funds join forces to invest in farmland", Reuters notes that a number of large pension funds are coming together to jointly invest in farmland projects. Just to take a couple of examples:
  • Just as an example, the article notes that the fund Adveq oout of Switzerland is discussing joint investments in farmland with European pension funds, a private family office and a Korean asset manager - now that's a diverse combination!
  • TIAA Cref - the large US pension fund - partnered with a number of pension funds including the British Columbia Investment Corporation.
The asset class is still pretty much new territory for institutional investors as their is only about US$30 million of farmland investments to date by institutional investors. This means that as more institutional investment goes into farmland, smaller investors who have invested in the asset class will benefit from the inevitable price apprecitation

If you are interested in investing in farmland, GreenWorld is proud to offer the following agricultural land investments:

Please contact us at if you might be interested to discuss further

Monday, January 7, 2013

Agriculture and Wheat Farmland Investments Will Benefit as Wheat Could Soar

Agricultural land investments in wheat will surely
benefit from the long-term trend trend of wheat prices
As we have said many, many times previously, the long-term trend in farmland prices is undoubtedly up.  Of course, we may see the occasional wobble along the way, but the combination of shrinking arable land, climate change and a rising population may us feel strongly that our instincts on this question are correct.

And again, we now see another example here.  In this case, drought over in the United States could send wheat prices skyrocketing.  Therefore, those who invest in agriculture in the right way will benefit greatly from this trend.  One option to consider is wheat farmland investments.  As long as you are invested outside of the United States, if the farmland investment produces wheat and other grains, your potential for healthy dividend payouts and perhaps increases in the capital value of the land are clear.

In that regard, we believe that our European farmland investment in the new EU country of Lithuania will benefit greatly from this trend.  The project involves a large working farm that has been in operation many years.  Individual acres are now being sold to investors interested in accessing the farmland asset class.
Please feel free to contact us at if you are interested in learning more about this investment.

Finally, a couple of reasons to consider this Lithuanian agriculture project for those interested:

1.  Those searching for dividends and income in a low yield environment will benefit as this investment just paid a 10% dividend yield.

2.  Furthermore, farmland in Lithuania is barely half the price of farmland in surrounding Nordic countries.  This means that as prices gradually converge over time, the potential for long-term increases in the capital value of the land exists as well.