Although our Global Index suggests a general ‘slow down’ in the average growth in values for global farmland, the rate of appreciation varies considerably around the world. We believe farmland investments will benefit from the long term positive fundamentals of farmland ownership, with increased world population, food production (balanced by reduction in food waste) and competitive land uses, such as renewable energy, driving demand.
These fundamentals offer farmland investors the opportunity to spread risk and maximise returns with a range of land-based enterprises, from food to energy production. A farmland portfolio can cut across countries and regions, soil types, climates and enterprises enabling the ironing out of price volatility for inputs and outputs.
Successful return on investment relies on an increase in unit production through land improvement and the efficient use of the latest technologies, while balancing investment performance with a reasonable risk profile.
The right asset in the right market will yield positive returns for the investor in the long term.
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