Farmland and Agriculture - Immune to Drops in Commodity Prices?

Well, maybe not entirely, but it is our opinion that the agriculture sector sector is less sensitive to the ups and downs of commodities and the global economy than such other areas as metals and mining. This article on the investing website Seeking Alpha made much the same point. The article states:

"Agricultural commodities on the other hand face much less elastic demand. Less housing in construction in China hurts copper demand, but it does not change the fact that people will not stop eating. Emerging economies may be facing slowdowns, but they are not contracting or halting to the point that consumers will be forced to change back to a grain based diet from their newly acquired meat based diets."

This captures exactly why we favor agriculture as our favorite commodities sector. We prefer to play the sector by investing in farmland, as we believe that farmland as an investment brings a certain stability and peace of mind to a portfolio that agriculture stocks and futures may not achieve/ However, anyway you decide to play it, if you are investing in commodities do try to make sure that agriculture is is included.

Finally, we are very pleased to note here in this press release that the African farmland project Green World represents recently paid an initial yield of 16.2%!

Update on GreenWorld's African Farmland Investment

While we focused in our previous post on GreenWorld's farmland investment in Australia, there is also wonderful news in regards to our farmland investment in Africa. This investment in rice farmland in Sierra Leone recently paid a 16.2pc dividend, prooving that its target for dividends of 15.2pc per annum was spot-on. Farmland prices in Africa start from a very low base, and there have been quite a few lare institutional investors such as pension funds and University endowments investing in farmland in Africa.

Please contact us at info@greenworldbvi.com for further information!

Play the Rise in Food Prices with Farmland Investments

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!