Demand Fundamentals Supporting Institutional Investment in Agriculture
The case for institutional investment in agriculture is compelling. Population growth, increased consumption and diminishing natural resources will continue to drive demand for agricultural products.
There is increasing evidence of escalating food prices, heightening food security concerns globally. The increase in demand will ultimately lead to increased prices and improved operating and capital returns from agricultural investments.
Agriculture Demand Fundamentals
- Dietary shifts towards protein rich products
- Decrease in available arable land
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Agriculture Investment Characteristics
- Robust Return Fundamentals
- Generally long-term, stable returns at a low level of volatility.
- Portfolio Diversification Benefits
- A low correlation with traditional asset classes.
- Potential to lower risk without adversely affecting returns
- Agricultural land is an effective hedge against inflation.
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