Publications

- August 1, 2016; Vol. 3, Number 8

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Farm to Portfolio: Investor appetite is growing for agricultural assets

by Drew Campbell

Real assets of all stripes are getting noticed by investors these days; with returns under pressure across all asset classes, the appeal of investments that can provide steady cash yields is growing. One of the real assets getting attention more recently from institutional investors is agriculture.

According to Agriculture: A New Asset Class Presents Opportunities for Institutional Investors, posted by Global AgInvesting, only 0.5 percent of the total value of farmland globally is held by in institutional portfolios; however, institutional investment in farmland has been growing annually at 8 percent to 10 percent. And farmland is an accessible asset class for the retail investor as well.

The report notes: “While most investment has been concentrated in row cropland land in North and South America, institutional appetite for agricultural investment in Australia and Eastern Europe is increasing, as well as interest in permanent crops.”

Row crops, as

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