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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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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Silos and transport ‘offer good scope for profits’

Companies have a "good opportunity to make money" building the infrastructure needed to feed a world population growing by some 100m people a year, a top executive at oilseeds giant Bunge has said. While the need to raise crop production by 1.7bn tonnes in the first half of the century to feed the growing population had been appreciated, the problems of transporting and storing the extra had been largely ignored, Carl Hausmann said. "The infrastructure needs of the world have been underinvested in over the last several year," said Mr Hausmann, the former chief executive of Bunge in Europe and North America, now head of the agribusiness giant's corporate affairs. "But if farmers do not get more facilities to store, deliver crops, they cannot increase their production. Infrastructure is a linchpin of the entire agricultural system." Public vs private sectors Developing the transport facilities and silos needed to meet this demand looked likely to come down to private companies, given the squeezes on public sector...
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Why farmers need a pay rise

By Lucy Knight FARMERS are in need of a pay rise if they're to be expected to keep producing food for the world, a parliamentary hearing in Canberra was told last week. Science writer and former head of CSIRO media, Professor Julian Cribb, told a Senate Inquiry on food production last week that major investments in farmers were needed to make it worth their while getting out of bed each day. What's happening instead, he said, is increasing competition for cheap food supplies by major supermarket chains the world "closing down" or "destroying" local industries and driving more and more people out of agriculture. Professor Cribb has recently launched a new book, The Coming Famine, where he speaks of the global food challenge and what efforts are needed to avoid it, including an entire chapter on securing a 'fair deal for farmers'. He told the hearing the United Nations Food and Agriculture Organisation...
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Canada woes send Paris rapeseed to 19-month high

Rapeseed rose nearly 3% to E334.00 a tonne for August delivery, a contract high, and the best price for a near-term lot for 19 months. The better-traded November lot notched up similar records by touching E338.75 a tonne. The rises reflected the impact of Canada's sodden spring - which the Canadian Wheat Board estimates will leave up to 12.5m acres of cropland in the west of the country unsown on hopes for production of canola, the rapeseed variant. Furthermore, the harvest in Ukraine, a key exporter to the European Union, has been dented by winterkill. "There are problems in Canada, there are problems in Ukraine, and prices of these are higher once you have got them into the EU," David Sheppard at UK grain merchant Gleadell said. "Therefore, our market probably has to go up a bit." Crushers' needs At Macquarie Securities, the investment bank, commodities analyst Alex Bos said that the rise in Paris rapeseed prices was "definitely a spillover from Canada's canola situation", which looked...
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EU AGRIBUSINESS – BIG SPENDERS OF EU BUDGET

Jack Thurston | February 5th, 2010 - 11:20 am The biggest driver for further reform of the CAP is budgetary. At a time when most governments are struggling with vast budget deficits, public expenditure is under pressure as never before. Policy-makers are looking for ways to trim budgets, to get better value for public money and to ensure that budgets are aligned with their most pressing policy priorities. Several years ago the commission initiated a ‘fundamental’ review of the EU budget and it is expected that this will set the scene for the debate over the EU’s finances from 2014 onwards. The views of member states are critical, as they hold the EU’s purse strings. James Clasper and I have this week published a new analysis of the views of member states on the EU budget and the CAP, based in part on their responses to the budget review consultation....
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40 Investing Quotes To Lead You Through Any Market

Via: www.investinganswers.com 1. Those with the enterprise lack the money and those with the money lack the enterprise to buy stocks when they are cheap.   -Benjamin Graham 2. A business that makes nothing but money is a poor business.   -Henry Ford 3. Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make.   -Donald Trump 4. After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.   -Calvin Coolidge 5. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.   -Paul Samuelson 6. If investing is entertaining, if ...
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Land may become top asset class – beating shares

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. And the outperformance looks set to continue, driven by rising food prices and demand from investment funds. Population pressure 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...
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