START A PETITION 27,000,000 members: the world's largest community for good
Feb 8, 2012

It has been duly noted time and again that population growth is a key driver in demand for food and other agricultural commodities including feedstock for biofuels and biomass. As demand for commodities grows, and supplies do not increases, prices rise and competition for existing produce increases. This bodes well for those in control of productive agricultural land as not only do incomes from harvesting crops increase, so too do does the capital value of the land on which they are grown.

In this brief article we will look at the facts surrounding population growth and the likely impact on the performance of agriculture investments, with particular bias towards farmland as an alternative investment asset class.

Monday 31st October 2011 marked the birth of Danica May Camacho in the Philippines. At 5.5lbs, Danica May is a tiny person that represents an enormous global milestone as she was chosen by the United Nations to symbolically mark the global population reaching 7 billion people.

In fact, the human population has increased by almost 400% in the past 100 years alone with a net increase of 225,000 new people per day during the last decade. Currently, more than 5% of the total number of people that have ever lived are alive today, and over 1 billion people have been added to the global population in the last 12 years. On current trend, the global population is projected to be roughly 40% higher than today by 2050 (UN Population Division, 2007, UN 2006 population revision).

To put this in perspective, this is the equivalent of adding the total population of Greater London (7,556,900 people) to the world's headcount every month(Wikipedia, 2011).

Whilst a range of scenarios and population forecasts exist, it is widely agreed that growth in demand for grain will double in the run up to 2050 and that the impact on food prices will be substantial (UN Environment Programme Rapid Response Assessment, 2009, The Environmental Food Crisis: The environments role in averting future food crises).

At the same time as demand is increasing, our ability to meet that demand with produce is diminishing every year. Put simply, the vast majority of suitable land is already being cultivated, with very little remaining to expand land under cultivation, and at the same time, soil degradation, urbanisation and water scarcity all combine to prevent further increases in production.

In summary, agriculture investments based on the identification, acquisition and operation of productive agricultural land offers Investors the opportunity to decorrelate a portion of their portfolios from financial markets, and capture both growth and income that is fuelled by undeniable demographic trends rather than the dynamics of financial markets.

David Garner is Partner at DGC Asset Management, an alternative investments boutique specialising in property transactions in the agriculture and renewable energy sectors.

Find out what you need to do to be prepared for the 2012 food Crisis

Visibility: Everyone
Posted: Wednesday February 8, 2012, 7:25 am
Tags: water store food how to disaster list crisis emergency survival survive preparedness supplies kits Storage prepar [add/edit tags]

Group Discussions
Or, log in with your
Facebook account:


Hunter R.
male, age 25,
Btv, VT, USA
No shares

No shares

Mar 31
Blog: How to Extend the Life of your TRIAD Boilers by Kayleigh L.
(0 comments  |  discussions ) — \\nHow to Extend the Life of your TRIAD Boilers \\r\\n \\r\\nCorlis Engine Review\\r\\nEvery user desires to prolong the life of a unit. TRIAD assists their clients in achieving this important objective by informing them of ways they can avoid problems... more
Feb 27
Blog: Dr Oz Weight Loss - The 100% Natural And Very Efficient Diet Pill by Debra S.
(0 comments  |  discussions ) — \\nYes, Dr. Oz called Garcinia Cambogia Extract (HCA) the Holy Grail of Weight Loss. He went on to say, “Anytime I see a scientist get this excited about something like Garcinia Cambogia Extract and when I looked through some of this research and... more
Blog: My Favorite Websites by krysta I.
(0 comments  |  discussions ) — \\nIFAW:\\r\\nOCEANA\\r\\nPETA:\\r\\nEARTH 911:\\r\\nANI MALs ASIA:\\r\\n \\r\\n\\r\\n\\n more
Feb 21
Blog: testing one two three by Geoff M.
(0 comments  |  discussions ) — hello world more
Blog: Garcinia Cambogia Reviews From Actual People Garcinia Pure Extract Is A Huge Success February 20 by Dany M.
(0 comments  |  0 discussions ) — \\nGarcinia Cambogia Reviews From Actual People Garcinia Pure Extract Is A Huge Success February 20\\r\\nGarcinia Cambogia System The Dr. Oz Lose Weight Quick Process Without Having Side Effects\\r\\nHe went on to say, “At any time I see a researcher... more
Content and comments expressed here are the opinions of Care2 users and not necessarily that of or its affiliates.