If you want to grow your wealth, the best way is to buy goods that can’t be multiplied and which more and more people want to own. Demand exceeds supply, so the price goes up. Of course, achieving this in practice is never simple, even with timberland and agricultural land.
The answer to the question “Why timberland or agricultural land?” usually starts with a few sobering figures, familiar to anyone who has previously invested in these assets. The first of these figures is 1.5 billion. That’s the total number of hectares of currently usable agricultural land on Earth. And it’s a number that is rapidly diminishing. The second figure you need to know is 200,000. That’s how many people are added daily to the seven billion who already need to scratch a living from the Earth. The picture is even more dramatic for the world’s forests, which, despite reforestation programmes, have been shrinking unabated for decades – by an area roughly equivalent to the total area of woodland in Germany annually.
Agricultural land and timberland have become a scarce commodity, and sadly this trend shows no sign of abating. At the same time, demand for food, animal feed, energy crops, and especially wood is growing year by year. Plus, direct investment in timberland and agricultural land has for centuries offered many qualities much sought after by risk-conscious investors. They are inflation-proof, don’t correlate with the stock market or financial markets, are immune from the effects of political crises, and at the same time offer competitive, stable returns, plus the chance of further increases in global land prices – even in the face of a financial crisis or coronavirus pandemic. In view of the dramatic increase in government debt in particular, timberland and agricultural land in safe regions of the world will continue to offer one of the few options for minimising risk and for protecting and growing wealth over the long-term.
Reason enough to take a closer look at the asset classes timberland and agricultural land! There are still plenty of opportunities for achieving lasting success with direct investment in the agricultural land and timberland value chain.
In the past and present, across an area of land totalling roughly 230,000 hectares, we have demonstrated to our clients that, even in exceptional times, direct investment in timberland and agricultural land can achieve very good results. As a leading independent consultant in the field of sustainable land use assets, we have been providing wealthy private clients, companies and institutions with bespoke solutions for protecting their wealth and for enduringly successful post-purchase management since 2004.
We will be happy to send you our brochure [in German] , which includes more detailed information on the asset classes timberland and agricultural land, and on our services as your companion on the road to becoming an owner. So pick up the phone or send us an email and get in touch.