Funds investing in Agriculture

June 5th, 2008
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Investment funds are starting to show interest in not only commodities like wheat and corn but also farmland and other necessary structures for agriculture. Investors plan to consolidate small plots of land to increase productivity, introduce new technology, and provide the capital to improve and maintain grain elevators and fertilizer depots. By directly investing into the agricultural business, investors can avoid the rules limiting the number of speculative bets they can make on the derivatives market. However, some caution that aggressive investment could cause a bubble in the farmland market similar to the housing market. In response, investors emphasize that their capital would help maintain services like grain elevators and fertilizer depots in volatile markets. The influx of capital could also encourage development of agricultural infrastructure, especially in emerging markets. In particular, there has been an increase in the number of farmland investment funds based in Britain such as the BlackRock Agriculture Fund, Emergent Asset Management, and Braemar Group.
For Detailed Investor Profiles on these Investors, click below:
Related People: Laurence D. Fink
Related Entities: Barclays Global Investors; Merrill Lynch Investment Managers; PNC Financial Services; State Street Research & Management; Bank of America; BlackRock Equity Funds; Blackstone Group*

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