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. It’s not quite that simple of course, even with agricultural land and timberland.
The answer to the question “why?” usually starts with sobering figures, familiar to anyone who is already invested in agricultural and timberland. The first of these figures is 1.5 billion. That’s the total number of hectares of usable agricultural land on Earth at present. And it’s a figure which is diminishing rapidly. The second figure you need to know is 200,000. That’s how many people are added daily to the 7 billion who already need to live from the Earth.
The picture is even more dramatic for the world’s forests, which, despite reforestation programmes, have continued to shrink for decades – by an area roughly equivalent to the total area of forest land in Germany annually.
Agricultural land and timberlands are already becoming 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 agricultural land and woodland is inflation-proof and correlates only very weakly or not at all with other major asset classes in a typical portfolio, such as stocks, bonds, or gold. Reasons enough to take a closer look at agricultural land and timberland as an asset class! There are still some opportunities to achieve long-term success by directly investing in agricultural land and timberland.
We will be happy to send you more detailed information on the asset class timberland and agricultural land and on our services as your guide on the road to becoming an owner. So, pick up the phone or send us an email and get in touch.