Investors Are Rushing to Buy Farmland

by healthypages on 19/08/2011 - 08:49 am |

Tag: News

Investors Are Rushing to Buy Farmland

It is being reported in the top investor journals that big investors are rushing to buy into farmland. Apparently the top investors see farmland as the new gold and some such as George Soros are even selling gold in order to invest into farmland.

The reason is that food prices are expected to start rising rapidly even as much as doubling within two years in countries such as the U.S. where the dollar is continually weakening. Even at present the United nations report that food prices are rising by 30% each year.

The Bloomberg magazine, one of the highly respected financial journals reported that "Investors are pouring into farmland in the U.S. and parts of Europe, Latin America and Africa as global food prices soar," adding that "A fund controlled by George Soros, the billionaire hedge-fund manager, owns 23.4 percent of South American farmland venture Adecoagro SA."

The demand for food is rising fast as the world population increases and at the same time there is a reduction in fossil water supplies, climate change and a continuous series of failures in genetically engineered crops (GM).

The Chairman of Rogers Holdings based in Singapore, Jim Rogers is the man who predicted the 1996 global commodities rally. He said, "I have frequently told people that one of the best investments in the world will be farmland," adding that “You’ve got to buy in a place where it rains, and you have to have a farmer who knows what he’s doing. If you can do that, you will make a double whammy because the crops are becoming more valuable.”



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