Thursday, February 17, 2011

Investing in farmland? Is it in your portfolio? One part of farmlandgrabbing.

Video on investing in farmland

"Agcapita is a Calgary based, agriculture private equity firm that allows investors to cost effectively allocate a portion of their portfolios to Canadian farmland via its professionally managed Agcapita Farmland Investment Partnership without the need to take on the complex responsibilities of ownership themselves. Agcapita Farmland Investment Partnership is the third in a family of private equity funds which has grown to over $100 million in assets under management."


Equity firms like this are buying up farmland to lease to farmers, using a pool of investor money.
Then we have competing interests on the opposite end of the spectrum buying up land to ensure it is farmed ecologically.
Then we have developers of industrial, residential and commercial properties who buy up farmland, don't farm it, then apply to have it removed from the agricultural land reserve for development. In areas without farmland zoning, it may just be let go.


Then there are people who move to the country, buy up farms, put on big houses and call them estates.


Then there are farmers.  With all that competition for land, is it any wonder that prices of farmland have escalated? 

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