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‘Like gold with yield’: evolving intersections between farmland and finance  [2014]

Fairbairn, Madeleine

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Abstract
Since 2007, capital markets have acquired a newfound interest in agricultural land as a portfolio investment. This phenomenon is examined through the theoretical lens of financialization. On the surface the trend resembles a sort of financialization in reverse – many new investments involve agricultural production in addition to land ownership. Farmland also fits well into current financial discourses, which emphasize getting the right kind of exposure to long-term agricultural trends and ‘value investing’ in genuinely productive companies. However, capital markets' current affinity for farmland also represents significant continuity with the financialization era, particularly in the treatment of land as a financial asset. Capital gains are central to current farmland investments, both as a source of inflation hedging growth and of potentially large speculative profits. New types of farmland investment management organizations (FIMOs) are emerging, including from among large farmland operators that formerly valued land primarily as a productive asset. Finally, the first tentative steps toward the securitization of farmland demonstrate the potential for a much more complete financialization of farmland in the future.
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Other subjects

  • land ownership
  • markets
  • capital
  • financial assets
  • business enterprises
  • profits and margins
  • chronic exposure
  • inflation
  • agricultural land

From the journal

Journal of peasant studies

ISSN : 1743-9361

Other information

Language : English

Type : Journal Article

In AGRIS since : 2016

Volume : 41

Issue : 5

Start Page : 777

End Page : 795

Publisher : Routledge

All titles :

" ‘Like gold with yield’: evolving intersections between farmland and finance "