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Farmland – Putting Gold to Shame

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Touch the Soil News #193

An amazing set of numbers has come across our desks relative to farmland in general and farmland in England in the limelight. The statistics and information following is excerpted from a 9/22/15 story in The Guardian by Patrick Collinson. The Guardian is a UK publication that ranks as one of the top news agencies in the world.

It is official, farmland in England is the most valuable farmland in the world. English farmland is not only valuable, but its value has doubled in the last five years. As an investment, its growth in value has outperformed the UK stock market by 50 percent and outperformed high value real estate in London by 16 percent. English farmland has put gold to shame as gold has lost 10 percent of its value over the last five years.

FarmlandVSGold

Around the world, farmland prices are being pushed up for three reasons:

  1. Heated speculation as human numbers continue to increase in the face of decreases in the agricultural resources available for food.
  2. The volume of retirement dollars rushing to own farmland.
  3. Nations unable to grow enough food for their own (like China) are spending billions to own or control farmland.

The following Info Graphic #1 illustrates farmland values around the world. The towering value of farmland in England – an industrial nation – has become disconnected from the price of food. It seems that farmland has not only food value, but psychological and security value. Many of the recent buyers of prime farmland in England are London financiers for whom farmland represents a lifestyle which they are willing to pay “astronomically” for.

FarmlandChart
SpecialHighlight

While it is a couple of years old, the following video clip of an English farmer is revealing as to farmland and farmers.

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