As we discussed in a number of previous posts our farmland investment blog- here and here - institutional interest in farmland continues to grow. The asset class is still pretty much new territory for institutional investors as their is only about US$30 million of farmland investments to date by institutional investors.
Now, we see another article come out about this trend. In an article entitled "Pension funds join forces to invest in farmland", Reuters notes that a number of large pension funds are coming together to jointly invest in farmland projects. TIAA-CREF, European pension funds and the British Columbia Investment Corporation are all investing in farmland.
This means that as more institutional investment goes into farmland, smaller investors who have invested in the asset class will benefit from the inevitable price appreciation. Institutional investors are not always right, but the sheer amount of money they possess can certainly move markets, and smaller investors would be wise to examine the advantages of investing in farmland.