Wednesday 27 April 2011

DGC Asset Managament: Rising Food Prices Spur Agricultural Investments

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Inflows of private capital in agriculture worldwide are expected to more than double to around $5 billion to $7 billion in two years as rising food prices spur investments in farm land and production facilities.

Investors from the U.S. and Europe are looking at South America for growing more feed grains, corn and soybeans, as rising global meat consumption propels prices, said Chris Erickson, managing director of the farm consultancy High-Quest.

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"What we are seeing right now is a lot of interest from institutional investors, private capital, pensions and endowment foundations to invest in real assets," he told Reuters on the sidelines of an industry seminar in Singapore.

"Farmland today globally provides a very interesting investment scenario based on global supply and demand fundamentals."

Private capital investment in farming in expected to more than double to around $5-$7 billion in the next couple of years from an estimated $2.5-$3 billion invested in the past couple of years, he told Reuters.

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Source: Calgary Herald