A study in falling supply and raising demand

By Hardman & Co

Published on May 26th 2010

Agricultural Land Available: 1.5 trillion hectares
Value of world’s Agricultural Land: US$5 trillion
World Population 2010: 6.8bn
World Population 2050: 9.1bn
Africa’s Population 2010: 1.8bn
Africa’s Population 2050: 3.6bn
10 Year Performance, US Farmland: +100%
10 Year Performance, UK Farmland: +95%
Word per Capita Food Consumption. 1965: 2,358 kcal per person
World per Capita Food Consumption 1998: 2,803 kcal per person
World per Capita Food Consumption 2030 est: 3,050 kcal per person
Pooled Funds Available for Agricultural Investment, Worldwide, listed in this study: 18
Quoted Agricultural Stocks Available For Investment, Worldwide, listed in this study: 42

After decades on the periphery as an investment category, farmland worldwide is increasingly becoming an acceptable holding for traditional investment funds. We believe that farmland, and agriculture generally, will shortly move beyond the ‘acceptable’ in the eyes of the world’s investment management community and become a core product. In the future, we believe, it will be as normal for a pension fund to invest direct in farmland – or in a fund specialising in farm ownership – as in commercial property. Similarly we anticipate the emergence of a more defined “agriculture sector” embracing all of equipment & systems suppliers; genetics & biotech expertise; and land management practices able to manage production yields and  sustainability alike.

All study here: http://hardmanandco.com/

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