Pension funds and farmland investments

(Reuters) – Pension funds are deepening their commitment to farmland, upping investments by billions of dollars and moving to active strategies, as a hedge against potential inflation and to diversify from riskier investments. Leading the charge are U.S. and European pension funds, although it is estimated that the amount of institutional money invested is less than 1 percent of global farmland value, with concentration in food exporting regions. A growing world population, limited water resources and finite amounts of land available have made farmland attractive to investors beyond traditional owners — private families.U.S. pension fund TIAA-CREF has around $2 billion (1.3 billion pounds) invested in farmland of the $426 billion it has under management and is looking to expand its farmland holdings. “If we found the right opportunities we’d be willing to double our existing exposure over the new few years,” said Jose Minaya, managing director of global private markets at the fund.“This is just another asset class that has the potential of...
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The world agriculture industry

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...
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USDA AGRICULTURAL PROJECTIONS TO 2019

Key Assumptions and Implications Major assumptions underlying the projections and selected implications include: Economic Growth • U.S. and world economic growth reflect a recovery from the global financial crisis and economic recession, with a transition back to steady economic gains. • Global economic growth is assumed to rebound to a 3.3-percent average growth rate for 2010-19. A resumption of high growth rates in emerging market countries, such as China and India, and a return to strong growth in other developing countries and countries of the former Soviet Union underpin this macroeconomic result. • The U.S. economy resumes growth at 2.5 percent in 2010 and 3.2 percent in 2011, followed by an average rate of 2.7 percent over the remainder of the projection period. With slower growth in the United States than in the world economy, the U.S. share of global gross domestic product (GDP) falls from about 27 percent currently to 25 percent at the end of the projection period. • The return to broad-based, steady global economic growth supports longer term gains in world...
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Experts forecasts a rerating of ag-related investments

Land may become the world’s biggest asset class, and listed farm operators win an upward rerating, Hardman & Co has said in a report identifying agriculture services groups as the next focus of sector investment. Farmland prices have, in doubling in the UK and US over the last decade, made shares look “an embarrassingly inept bet”, the London broker said. Stocks have fallen by 10-20% during the same period. Farmland, whose $5,000bn value equates to about 7-10% of the value of world equity markets, could be worth 15-25% of share values by 2020. “By 2050, it is possible to argue that food producing land might have a superior value to all other asset classes,” Hardman analyst Doug Hawkins said, noting forecasts of rising global populations. “This land is feeding over 6bn people and is being pressed into feed a further 3bn by 2050.” The broker noted the growth of funds dedicated to investing in farmland, with Emergent Asset Management proposing to invest some $4bn...
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Harvard PhD Ray Goldberg – speech at IFAMA

Dr. Ray Goldberg, Harvard father of IFAMA  (Food and Agribusiness Management Asociation)received prize at Boston IFAMA meeting with food firms. He also received the Doctor Honoris Causa from the Universidad de Buenos Aires. Here a brief of his speech “We don’t have to tell this generation that food and health and hunger, etc., are high priority—they know it—as evidenced by “Food, Inc.” being nominated for an Academy Award. “Some 16 years ago at Harvard, I tried to put together a group of consumer activists, private sector, public sector and agriculture to look at the industry. At first they called each other names. Over time, they realized they share a common ground—all trying to improve the global food system for society’s needs. I have gained a sense of optimism for the next 20 years—there are more saints than villains. “The farmer has finally become global—and farmers elsewhere are no longer competitors but partners in the production of food for the global population. We are all...
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Tyres key to efficiency

BY GRAHAM FULLER 26 Jun, 2010 10:26 AM TRACTOR drivers may be familiar with the trend towards higher road speeds, but the latest tyre technology continues to take the industry to the next level.In the eyes of Sydney-based Tyres4U national manager, Robert Kovacs, tractor tyres are "very technical pieces of equipment," allowing modern-day farm workhorses "to do what they need to do". With a wealth of experience under his belt he makes the point that tyres remain one of the most important features on any tractor, requiring attention to detail when optimising the in-paddock performance of any tractor/implement combination. "Not only do you have to bear in mind ground compaction but also wheel-slip and driver comfort - to name but a few issues," Mr Kovacs said, adding that not every tyre suits every application. "While a big 500hp 4WD tractor would be equipped with specialist broadacre tyres they would be entirely unsuitable...
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Investiti in VIE si/sau VIN

Excelenta oportunitate pentru a investi intr-o plantatie de vita-de-vie si/sau vin! zona Niculitel, jud Tulcea - Romania suprafete intinse cu vita-de-vie bazin cu traditie pentru achizitia de struguri infrastructura capacitati de stocare vin cladiri si birouri disponibile Niculitel este una din cele mai faimoase regiuni viticole ale Romaniei. Sa ne aducem aminte ca suntem in Nordul Dobrogei, tinut stravechi al tarii (Muntii Macinului sunt cei mai vechi munti ai Pamantului). Tinuturile sunt superbe, oamenii se imbraca inca in costum popular iar traditia este prezenta peste tot. In aceasta zona se cultiva struguri pentru vinuri albe gen Aligote, Riesling Italian, Feteasca alba etc iar pt vinuri rosii in zona sunt soiuri gen Feteasca Neagra, Merlot, Cabernet Sauvignon, Pinot Noir etc. Iata mai jos doua poze cu capacitatile de stocare vin.  ...
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Invest in VINEYARDS / WINE Romania!

Excellent opportunity in Niculitel area (Tulcea county) for: •    Vineyard farm •    Grapes collection •    Wine storage (large capacity barrels) •    Warehouse and office building Niculitel is one of the most famous vineyards areas of Romania. Remember we are in Northern Dobrogea, very old land of mankind (Macin Mountains the oldest in the world). The landscape is beautiful and at every pace you meet nice people, old women dressed in popular costumes and tradition. The varieties of grapes in this area are for white wines : Aligote, Riesling italian, Feteasca alba etc and for red wines: Feteasca neagra, Merlot, Cabernet Sauvignon, Pinot Noir etc. Have a look at the large capacity barrels, they are in good condition and ready to be used. ...
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Research into cutting nitrogen bills

June 23 2010 THE production of wheat and barley varieties which can access and use nitrogen more efficiently could cut farmers’ fertiliser bills while reducing environmental damage from fertilisers leaching into the soil, especially in sandy areas. A recently started five-year Grains Research and Development Corporation (GRDC) funded project has been set up with the goal of developing more nitrogen efficient varieties through a process of assessing genetic variability in nitrogen use efficiency in Australian wheat and barley germplasm, including advanced breeding lines. The project involves researchers from the University of Western Australia (UWA), the Department of Agriculture and Food WA (DAFWA) and the University of Sydney, with contributions from major Australian breeding companies. UWA researcher Winthrop Professor Zed Rengel said high fertiliser prices were driving the development of new cultivars better able to acquire and use nitrogen. “Modern grain production relies on relatively large amounts of synthetic fertilisers to...
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