Adding Value with Local Expertise
Investments in agricultural land is nothing new. However, an increasing amount of investors are looking at diversifying their portfolio's with ag lands as a natural hedge against the volatility of stock market. According to Nuveen, they think investors would do well to take the concept of diversification to the next level by focusing on specific geographies and leveraging local, specialized expertise.
We believe that developing a relationship with local producers and farmers adds to the value chain for the investor and investment institutions. Nuveen also states they believe an important approach to land investments is through a dual approach: understanding the macro factors that make specific areas and certain types of investments potentially attractive, while also relying on local experts who can uncover value in highly specific ways. We have cultivated relationships to build on both of these principles.
Local expertise can provide information on fundamental factors such as crop types, water usage, rainfall and soil dynamics. For a successful investment with long-term growth and success it is important to have an understanding of other risks and analysis of the land. Understanding multifaceted aspects of land investment is crucial. It takes a team approach of investment professionals and local expertise in the industry.