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- December 1, 2010: Vol. 2, Number 11

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Mouths to Feed: What Real Estate Investors Need to Know About Investing in Agriculture

by Alexandra Bailey

Investment in agriculture is growing rapidly as institutional investors and sovereign wealth funds seek to gain exposure to the rising commodity and land prices as a global food shortage emerges. The amount of arable land available for food production is significantly diminishing, rapid population growth is creating more and more mouths to feed, and the diet of the world’s population is improving as nations become wealthier. Furthermore, the potential to increase food production through improving farming efficiencies is limited. This demand/supply imbalance is creating a global food shortage that is arriving faster than climate change and is creating what has been termed the “other GFC” — the Global Food Crisis. This has seen agriculture emerge as an asset class in its own right as investors cash in on the need to secure food and energy supply in this resource-scarce world. According to Jeffrey Conrad, president of

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