As agriculture commodity prices stay high and arable farmland globally continues to shrink, there has been a made dash into the location where 60% of the world's untilled arable land remains - Africa. Whilst most observers focus on other commodity investments in Africa, especially energy and minerals, the rush into farmland has been extraordinary.
Nations are increasingly concerned with "food security", and as a result there have been huge agricultural investments made by sovereign wealth funds and state-owned enterprises. According to a recent article in Business Insider, farmland investments on the continent have surged 1,500% since 2008. According to an article in Forbes, UK hedge fund Emergent Asset Management launched a farmland fund dedicated solely to African agriculture, and they are targeting returns of 270% over a five year period. The Emergent farmland fund has a minimum investment of US$500,000 as it is targeted at institutional investors and family offices, but there are also now options for retail investors who may be interested in riding the agriculture commodity wave and diversifying a small portion of their portfolios into a unique alternative Investment.