Historical backers of the asset class, not least North American pensions, are seeking to hedge risks by redrawing their forestry strategy. But implementing new plans takes time.
It’s not clear anyone will gain much from Australia’s latest tightening of foreign investment rules.
State-backed vehicles have good reasons to invest in agriculture. Can they do it at scale without running into political hurdles?
CPPIB’s exit from its US farmland holdings, and the possibility that the buyer was connected to Bill Gates, could signal a change of tack among makers of the farmland market; but it also highlights a need for greater transparency.
The subcontinent’s middle class is not growing as fast as foreign companies would hope. But there are other reasons to invest in its agribusiness.
The level of institutional interest in Australian agriculture is nothing short of historic. Is it because of the market’s intrinsic attractiveness or the paucity of opportunities elsewhere?
Agriculture has done well in the benign post-crisis environment created by central banks. But is it equipped to survive shocks?
This year has shown how much farmers stand to lose from global warming. Thankfully, financial innovation could come to the rescue – and provide investment opportunities.
Various indicators suggest institutional interest in agri is on the rise. Yet, so far, the appetite of the asset class’s largest investors does not extend much beyond their borders.
Agriculture will undergo drastic transformation once Britain leaves the EU, and investors will experience some highs and lows along the way.