The deep-rooted and structural nature of the major trends in the agricultural sector, provide an attractive long-term investment theme.
- stable yield over a cycle
- capital preservation
- lack of correlation with other asset classes
- lower correlation with oil, for those systems minimising the input reliance of industrial agriculture
- portfolio/geographical diversification
- a secure physical asset
- growing demand (notably for organic food)
Where knowledge is embedded, not employed.
Investment in agriculture requires a strategy that is cognisant of, and adapted to, climate change, environmental depletion, demographics, regulation and increasing resource constraints. The scientific rigour of regenerative, agroecological management, ensures farmland is best positioned to generate attractive and consistent returns in the face of these accelerating pressures.
For Agro-Ecological, farmland offers the ability to take suboptimal conventional properties and transform them into resilient ecological assets enabling us to improve returns. Essentially we acquire farms and fix them in order to deliver superior income.
A Tale of Two Farms
- Two farms; both look good.
- One is big, one is very big.
- One has classic investment strengths, one is agronomically compelling.
- One is a good acquisition and one is not.
- But which is which?
Just read this paper.
Geoff Burke interviewed on CNBC's Alternative Investing segment.