Investing in productive farmland on which row crops or timber may be planted is gaining ground among institutional investors looking at long-term opportunities that include diversifying portfolios with farm real estate.
Upcoming Land Investment Expo speaker Stephen Kenney, an institutional investor with Hancock Agriculture Investment Group in Des Moines, last month told the editors of AgWired that farmland is now viewed as a strong and steady asset for institutional types to have on hand.
?Institutional investors are now taking a look at this asset class as a way to have stable income flow, steady returns to offset their liabilities from their pensioners,? Kenney told the Florida-based agribusiness media outlet. ?It helps to mitigate some of the volatility in their overall pension?It?s a tangible asset. It?s something they can go out and kick the dirt?no pun intended.?
At Peoples Company, we?ve seen low interest rates help farm operators expand their operations as private investors diversify into farmland via the use of IRA money. And as our land agents and farm managers continue meeting hungry private investors ? connecting them with farmers who want to sell and lease back highly productive cropland, with profit potential for each stakeholder ? we also recognize there is no sign of slowing on the institutional front.
In fact, last week?s release by Macquarie Agricultural Funds Management, as reported by Fox Business, said fund managers to date had invested a cumulative $40 billion worldwide in farmland, and continue to view the burgeoning agricultural-related asset class as an attractive alternative to stock markets.
?Until recently, agriculture and farmland did not have a natural home in the investment portfolios of the mainstream institutions,? says Macquarie?s Bradley Wheaton. Citing Macquarie, Fox Business reported there is $1 trillion of ?investible? farmland worldwide.
Join Stephen Kenney and a host of other land and real estate experts for continued conversations about farmland investments, by both institutional investors and individual buyers, during the Sixth Annual Land Expo, Jan. 18, in West Des Moines, Iowa.
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