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Direct Farmland Investments in South America as an Inflation Hedge

image of Investment in Farmland
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.…

Changing Farmland Investing Options

We think farmland as an investment is something that in 5-10 years will be a must in any professionally managed diversified portfolio. We are excited to be at the forefront of reporting the rapid changes in this exciting new market which is now opening more opportunities for smaller investors via syndicates and specialised agro funds. Those smaller investors ( USD 50,000 to USD 200,000 ) seeking exposure to real assets with strong cash yields and low volatility have found it nearly impossible to get direct…

Investment funds around the world seeking farmland in response to food price hikes

For decades, the world was often swimming in surplus food because farmers were so productive. But rising demand has caught up, and reserves have become so tight that global food markets are vulnerable to even minor shocks. Many analysts say that higher, more volatile prices may be here to stay. The new dynamic reflects in part the rising demand for commodities in developing countries such as China, India and Russia. By 2050, the U.N. Food and Agricultural Organization projects that world food production will…

Investment Funds are scrambling to build up rural expertise in response to rocketing investor demand to buy entire farms

Investment funds worldwide have put an estimated $15 billion to $20 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as tangible, strategic assets. But Rich Gammill, managing director of the Cargill unit Black River Asset Management, which manages $6 billion including in food and agriculture, said farmland investments can be tricky. “It seems simple, but agriculture is anything but. There is a global supply chain and lots of…
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