Agriculture and infrastructure for agriculture can be a growing proposition for institutional investors. Farmland has proven to be a very good investment and so has the infrastructure supporting it, from water to energy to companies making pumps and irrigation systems. Meanwhile, controlled-environment agriculture, frequently called indoor ag, is attempting to lure investors and define the future with large high-tech greenhouses, vertical farming and other innovations.
A recent Nuveen report, Investing in Farmland, argues direct investment into global agricultural land presents an increasingly compelling opportunity, offering potentially stable returns, low correlation to other assets and a hedge against inflation. The report notes positive supply/demand fundamentals with growing populations that will require more food and developing countries that continue to increase protein consumption, which requires more grain.
Westchester Group Investment Management, Nuv
