Investment in Agriculture
June 18, 2014
The interest in investing in farmland has been soaring and is expected to only increase further. The interest is caused by such drivers underlying this investment as climate, food scarcity and population growth.
Studies frequently discuss the characteristics associated with agricultural investment. A neglected topic is the exploitation of farmland by the investor him or herself. When publications refer to the return from farmland, they mostly mean direct and indirect return in combination. This thesis will deal with the direct return from investment in farmland.
Investors believe that the direct return from the leasing of land to a user, in most cases, a family business, is too low compared to the value of the underlying farmland asset. They are looking for other ways to increase the direct return, including undertaking their own operation.
In his final project for an Executive Master of Real Estate (MRE), Johan Reijngoudt investigated the chances and opportunities that exist or will exist in the area of agricultural investment. Below, you can read more about his study as well as a recent initiative on the market.
Exploiteren versus Verpachten, Johan Reijngoudt (2013) - in Dutch
Rabo Farm lanceert nieuw institutioneel fonds voor investeringen in akkerbouwbedrijven, Bouwfonds (2014) - in Dutch