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Are Retirement Savings Pushing Farmland Prices off the Charts?

Positive Future News #935 (Feature Photo – Farmland – CCA SA 2.0 Generic, Andrew Smith)

The non-profit called Grain, is sponsoring a webinar on what they call Pension Fund Capitalism. The webinar is about a simple concept. Monies set aside around the world for pension plans, is estimated to be $52 trillion. Now, money from wages, that is taken out of the household spending arenas, no longer circulates freely in the economy to sustain jobs, but moves to a side of the ledger that is looking for a return on investment.

At issue is that monies from pension funds, unable to find a home in stocks or debt bonds, are looking for farmland. Pension funds own farmland and lease it back to farmers to make a return on investment. So there is a double impact to the economy. The first impact, is the pressure to decrease wages and benefits to reward pension investors. The second impact is the increase in the price of food, as pension fund returns must now be added to the price of food through farmland. What do you think? You can read the story here:

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