Producers who are able to grow production will be rewarded. Global population is expected to increase by almost 60 million a year peaking in 2050, with almost all of that growth concentrated in the developing countries*
The increase in the level of relative and absolute wealth in the developing countries is resulting in changing diets richer in protein and higher in calories; the required growth in production to meet this increase in demand is over 60% across the agriculture commodity spectrum
The growth in production has been slowing as the gains from intensification are diminishing and as agriculture is forced to compete for scarce resources. Our assets are usually based in South East Asia, China, Mongolia and parts of the Americas.
Historical data suggests low correlation to other asset classes and therefore farmland offers diversification of assets. Farmland is an income generating asset. This is absolutely key. Historical data suggest that as a real asset. Farmland may provide protection in periods of high inflation.
We believe Farmland is more lucrative than housing considering the figures that we are working on with our current clients. However we do still indulge in the property market in pursuance of the wishes of our customers. Both programs have provided very healthy returns.