The green gold

Farmland as investment, also called ‘the green gold’ continued to perform better on a global scale than most other assets. With an increasing interest for this safe haven sector in insecure times, investments by sovereign wealth funds (governments), institutional investment agencies, pension funds, family offices and wealthy private individuals increase precipitately. Securing food provision is currently high on the agenda of most governments. 

 

 

Total return data of many countries are difficult to retrieve. However, an analysis of the capital growth since 2002 of the three principal investment categories in property assets: farmland, commercial and residential property, clearly demonstrates that farmland performs better on a consequent basis than the other two. During our research the annual capital growth of these assets between 2002 and 2011 was examined.

 

 

Traditionally seen, capital growth is the principal reward for investors, Due to higher food prices, the input of Dutch, modern management and agricultural techniques combined with the option of investing today in areas where farming currently still shows underperformance, the yearly yield potential is much higher than previously.