According to a report by farmland investment specialist and Oakland Institute fellow, Lukas Ross, as much as $10 billion of institutional capital is set to be invested in U.S.
"Look at that fish!" exclaims Jay Ellis, wading into the 34 degree water to scoop up an 18-inch brown trout. The Texas resident may be far from home on this Kamas, Utah, ranch but he still knows all the best fly-fishing holes.
WASHINGTON, Feb 19 2014 (IPS) - An estimated 400 million acres of farmland in the United States will likely change hands over the coming two decades as older farmers retire, even as new evidence indicates this land is being strongly pursued by private equity investors.
Across the African continent, land grabs by corporate conglomerates, American universities and European financial speculators have prompted worry among Africans concerned about a new form of colonialism taking shape.
Farmland values are amidst a widely documented slump. The grain markets aren't exactly lighting the world on fire either. The latter factor will likely keep more farmers on the sidelines at land auctions that may have seen furious bidding a year ago, one economist says. So will the combination of fewer bidding farmers and lower prices open the door to a flood of new investment entering the market? One thinktank market-watcher says yes.
What could possibly go wrong?
In the short-term, California’s farmers have this historic drought to worry about. But there’s a larger threat looming for farmland across the U.S.: Wall Street.
Feb 18 (Reuters) - Institutional investors are buying up U.S. farmland at a rapid rate, and their influence is starting to shift the types of crops grown and the way the land is managed, according to a report issued Tuesday.
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WALL STREET: AMERICA’S NEW FARMER