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Farmland and Agriculture: Q2 2020 Update

Recent Papers on Farmland and Agriculture Assets

As Nuveen states, food prices have been relatively stable, even during past economic crises. So as long as COVID-19 does not affect food security or agricultural commodities directly, the outlook for the farmland and agriculture industry remains strong, as does the use-case for farmland and agriculture as an asset class within institutional portfolios (due to its low correlation to traditional assets and its risk/return profile). 

Other papers and podcasts discuss the need for sustainable agriculture, factors that influence the value of farmland, potential food crises, and agriculture as an investable asset class. 

agriculture

Why Farmland Now? (Nuveen, Apr 2020)

Recent productivity gains and stable demand for food products (even during past economic crises) are both reasons to consider investments in agriculture as an asset class.

The link between land use and climate change (Aviva Investors, 2020)

For compliance reasons, this paper is only accessible in certain geographies

Aviva explains that decreasing the carbon footprint related to global food demand, improving land-management policies, and increasing sustainable farming are all key to managing and minimizing climate change risks.

Podcast: Sustainable agriculture - economics of healthy soil (Federated Hermes IM, 2020)

For compliance reasons, this paper is NOT accessible in the United States

In this 24 minute podcast, investment professionals from Federated Hermes IM explore the subject and economics of healthy soil.

Sustainable Food Strategy: An introduction (Impax AM, 2019)

Active investors should pay attention to the factors that are influencing the food and agriculture sector, as it transitions towards food production that is more sustainable.

Farmland Values: Analysis of global row crop farmland pricing (Nuveen, Apr 2020)

Nuveen explores global farmland values, specifically reflecting on several related issues, including how productivity and interest rates have influenced farmland values over time.

COVID-19 and the Timber Supply Chain (Manulife IM, Mar 2020)

For compliance reasons, this paper is only accessible in certain geographies

Because China is the leading importer of timber and forest products, this paper looks at how COVID-19 could disrupt the timber supply chain.

Natural Resource Flash Report (Manulife AM, Mar 2020)

For compliance reasons, this paper is only accessible in certain geographies

This paper looks at timberland and farmland as a long-term asset, comparing its risk/return profile to public equities, government bonds, and other asset classes, especially during periods of exogenous economic shocks.

Farmland Flash Report (Manulife IM, Mar 2020)

For compliance reasons, this paper is only accessible in certain geographies

Potential headwinds for the farmland industry include a stronger US dollar, slower growth in China, and logistical bottlenecks.

Institutional Farmland: Changing operating and capital structures (Nuveen, 2019)

Farmland has traditionally been family-owned and operated, but the industry is adapting, and new technology has the potential to affect operational models. Nuveen discusses some of the ways that institutional capital can assist in this process.

Investor Expectations for Global Plastics Challenges (Federated Hermes, 2020)

For compliance reasons, this paper is only accessible in certain geographies

Challenges within the plastics value chain include environmental pollution, greenhouse gas emissions, and other health-related impacts. In order to resolve these issues, we may need to rethink (and re-engineer) the entire global plastics system.

The Agriculture Asset Class: An introduction (Meketa, 2019)

Meketa discusses the factors that are leading to increased global food demand, investment opportunities in the agricultural sector, and other unique aspects of this asset class.

2020 Global Report on Food Crises (FAO)

How serious are the food crises that are affecting vulnerable people across the globe, and how have these same populations been affected by the COVID-19 pandemic?

Global AgInvesting Rankings and Trends Report 2019

This report by Global AgInvesting provides a detailed examination of global capital flows into the global food & agriculture sector. It contains ranking tables of organizations deploying capital in the F&A sector and analysis of aggregated data.

Maintaining Food Resilience in a Time of Uncertainty (PwC, Apr 2020)

This report discusses the importance of food value chains in the ASEAN region and how to ensure their resilience during the COVID-19 crisis.

Subsidies and Sustainable Agriculture: Policy landscape (Chatham House, 2020)

This paper maps both direct and indirect subsidies supplied by governments to the agricultural sector. This support shapes consumption patterns and also affects food security, land use practices, and other sustainability concerns like biodiversity.

Growing Australian agriculture into a $100 billion industry (KPMG/NFF)

The Australian National Farmers' Federation aims to produce $100 billion in farm output by 2030. This paper tries to bridge the gap between current agricultural output and the NFF's goals.