Benefits of Investing in Agriculture
The value of land and natural resources is expected to increase over time as a hedge against inflation – protecting future purchasing power.
Farm correlations with stocks and bonds are low and sometimes negative, providing diversification that is especially desirable when market volatility causes correlations between traditional assets to converge.
Our eclectic management team from Brazil, Switzerland, Germany and the UK have held senior leadership positions in Fortune 500 companies and apply time-tested management practices and processes to maximize efficiencies and profitability while ensuring that ESG practices are front and center in any decisions taken.
Our local presence and Brazilian network of farm owners, brokers and local banks that have been built up over many years provides our team a unique advantage in sourcing excellent farms at prices well below market price.
Our track record of investing on behalf of institutional investors allows us access to distressed farm opportunities that can be purchased at times for a fraction of the market value amount through negotiations.
Farmland as an Asset Class
Several factors account for farmland’s record of higher returns and lower risk, compared with timberland and real estate. Farmland is the least liquid of the three categories, with relatively few institutional investors, most transactions
occurring between individual farmers, and generally long holding periods of 20 years or more. Population growth, rising middle classes, farm productivity gains, and ethanol demand have supported steadily rising land values, while barriers to entry and lack of institutional trading have reduced volatility.