Investments In Farmland?

Investments In Farmland –Part 1

‘Investments’: “Rogers & Soros:  Farmland ‘One of the Best Investments of Our Time‘ ” is today’s “Top Story” By Contrarian Profits at contrarianprofits.com. Here are some highlights:

• “The fundamentals are easy to understand. Over the next 40 years the population of the world is projected to grow from 6 billion to 9 billion, hugely increasing the strain on arable farmland worldwide.”
• “Land is scarce and will become scarcer as the world has to double food output to satisfy increased demand by 2050. ” Joachim von Braun, director general at the International Food Policy Research Institute, told Fortune Magazine.
• “With limited land and water resources, this will automatically lead to increased valuations of productive land. And it goes hand in hand with water. Water scarcity will probably increase more than land.”
• “I’m convinced that farmland is going to be one of the best investments of our time.” says commodities guru Jim Rogers.

‘Investments’: A ‘thank you’ to survivalblog.com for this sourcing: “Peak Soil Investment: This Quiet Land Grab is Just Beginning” by Q1 Publishing – June 12, 2009 at wallstreetpit.com. Here are some of the articles key points:

• “According ti the Economist, “Saudi Arabia, Kuwait, and China have been “quietly buying up more than $20 billion of this asset.”
• “Right now, official estimates for this year’s crop are far too optimistic. Currently, the U.S. Department of agriculture (USDA) expects world grain production to rise 4% this year. And they’re expecting an increase of 3.1% in 2010.”
• “…these are very rosy expectations for so many reasons. First, …2008 was one of the top three crop production years in history.
• “…agriculture production doesn’t grow that fast. …An average year will see about 1% to 2% growth – maximum.”
• “The final thing the USDA is missing is AGRICULTURE PRODUCTION GOES HAND IN HAND WITH THE ECONOMY (caps/PH). According to a report by Credit Suisse, “[2009] would be the first global recession to coincide with increased crop production.”

“When it comes to farmland though, there isn’t much more farmland left in the world.”

“…the world has practically reached ‘Peak Soil.’”

The middle of next week should see us here at PrudentHome completing, for the time being, our discussion of increased interest and investment in farmland. You can probably begin to see the outline of our subject with the information presented today but stick with us; there’s more. Also, there’s an honest look as to how this effects the individual family, what the prudent home can do to deal with this development, and what to look for in the future along these lines.

Until the end of the week then: keep your eyes on the horizon as the weather’s changing fast.