The four farms in the ‘macadamia capital of Australia’ cover 545 ha across four adjoining farms with 109,000 mature trees and were put up for sale in 2013 by one of the largest institutional managers of agricultural real estate in the US, Hancock Farm Company.
San Diego County Employees Retirement Association plans to commit $275 million to $400 million to real assets including agriculture, mining, energy and timber in 2015.
It takes a gallon of water to produce one almond. And that's not the most insane fact about the mad dash to plant the thirsty trees in the middle of a catastrophic drought in California.
This year could see a surge in interest in farmland from investors with very little experience in this complicated asset class, reports Euromoney
With the ups and downs of the stock market in the past few years and the boom in the rural economy, institutional investors are looking at farmland as a tangible, stable asset to have in their portfolio.
The world’s second-oldest profession–farming–is a hot investment
Farmland is a compelling way to capitalize on the coming bull market in agricultural commodities, but it’s a high-risk proposition.
Investment managers in the US report rising interest from pension schemes and retail investors in funds that buy and run farmland in developed countries.
The rights and wrongs of global agricultural investment examined on Business Daily of the BBC
Wary of fluctuations on Wall Street, more wealthy Americans, private funds and foreigners are putting money into parcels of cornfields, fruit orchards and other US agricultural products.
"In the age of derivatives and evaporating valuations, farmland is gold with a cash flow."
Investors are growing more bullish on U.S. farmland as softness in some sectors spurs increased competition for buying quality acres. Capital flow is increasing from overseas, in particular from Europe, Asia and the Middle East.
