Farmland Investment Gains Further Interest Amongst Institutional Investorsgreenworldadmin | Friday, March 8th, 2013 | No Comments »
As we at GreenWorld have noted on a number of occasions, investors would be well advised to study global macro trends to find interesting niches in which to deploy capital. Indeed, we have noted that shrinking arable land and a growing global population makes the case for investing in farmland an attractive proposition. In that regard, whilst large institutional investors may make some catastrophically poor choices at times, the fact remains that they do deploy gobs of money, and if small investors can spot where institutional money is starting to go they can ride the wave behind the big guys.
In that regard, we came across a piece from Reuters on how pension funds and other institutions are beginning to partner together to invest in farmland. The article mentions a number of institutional investors including TIAA CREF, the British Columbia Investment Management Company, AP2 out of Sweden and Adveq out of Switzerland.
This tells us that a) institutional investors understand the value behind investing in farmland; and b) that they are just at the very beginning of deploying funds into the farmland asset class. From GreenWorld’s perspective, this indicates that our concentration on the farmland investment asset class is spot-on, and that we have a chance to “ride the wave” of the inevitable institutional money that will be deployed in the future.