Have $1 billion to invest? Buy agricultural land is Lord Andrew Hay’s advice
For a man with information on prime properties across the globe, Lord Andrew Hay can separate the wheat from the chaff. And that’s why the wish list of the global head of the residential division, Knight Frank, like many of today’s high-net-worth individuals (HNIs), involves investing in agricultural land. Security plans The regions that have found favour are Australia, Africa and South America, according to Hay. “We are losing 10 million hectares of productive land each year. There will be a food shortage…
Direct Farmland Investments in South America as an Inflation Hedge
Farmland is seen as an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favourable diversification that is negatively correlated with traditional asset classes. Most investors have experienced wrenching declines in the value of their portfolios from time to time. Still, those with an agricultural allocation benefited from less volatility and positive returns to offset losses from the other asset classes. Current Income Crop farmland has consistently produced…
Why farmland now? Amidst unprecedented market volatility
Why farmland now? Financial markets are responding to the current limited visibility and uncertainty, both severely exacerbated by the coronavirus pandemic, by retreating towards safe haven investments such as U.S. treasuries (where yields have declined below 1%), gold and certain currencies (e.g. the U.S. dollar). A compelling alternative prior the virus outbreak, and made more so by coronavirus, is farmland. Farmland has a history of exhibiting unique value durability and income levels through economic downturns.…
