Corporate Farming: Farmland fund to exploit food price boom
By Joshuah at 15 September, 2008, 6:04 am
Every man should begin immediately to take a more active role in the production of goods and services for his own household, especially when it comes to food production. Despite all of our advances and technological achievements, we still require the same basics for survival…food, clothing, shelter…I can practically see Monsanto drooling over this news.
“Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense.” Proverbs 12:11
Source FT.com
The largest fund to invest in European farmland will be launched on Monday, signalling investors’ growing appetite for alternative ways to profit from a long-term rise in agricultural commodity demand and prices.The farmland fund, set up by Germany-based Palmer Capital Partners and UK-based Bidwells, is expected to raise about €300m ($425m) to buy arable land in Poland, Hungary, Romania and the Czech Republic. It will also invest in western Europe.
Palmer Capital and Bidwells said their product was the largest-ever of its kind.
Institutional investors’ interest in farmland is the latest sign of how the global food crisis, which saw commodities such as wheat, corn, soyabean and rice, reach record prices earlier this year, is reshaping agricultural businesses.Food prices have more than doubled in the past five years, boosted by strong demand from emerging countries and the biofuel industry and faltering supply, according the Rome-based United Nations’ Food and Agriculture Organisation.
The FAO’s food index, a benchmark for global wholesale agricultural commodities prices, is 25 per cent higher than a year ago, although it has fallen back from a record peak set last March.
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