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Agriculture the new investment frontier?

An article in Reuters by Naveen Thukral suggests farm land and production facilities might be the next trend in private capital investment.

Inflows of private capital in agriculture worldwide are expected to more than double to around $5 billion to $7 billion in two years as rising food prices spur investments in farm land and production facilities.

“Farmland today globally provides a very interesting investment scenario based on global supply and demand fundamentals”, said Chris Erickson, managing director of the farm consultancy High-Quest.

Food prices will be driven higher all over the world due to climate change-driven extreme weather such as flooding and drought, adding impetus to this new trend. The countries that invest in adaptation approaches now will increasingly have an advantage over those that don’t.

Climate Change Adaptation & Crops and Food Supply is ACT’s next research topic, running from May-December 2011, with a major report on ways government policy can help due out in early 2012.

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