SLM Partners, an investment firm, has released a white paper that explains why ecological and regenerative farming provides an attractive investment opportunity.
The paper reveals the hidden risks of industrial agriculture and presents case studies of ecological alternatives that are profitable and sustainable. Drawing on the latest science and market data, the paper contains important insights for investors, policymakers and landowners.
Farmland has emerged as a new asset class for investors seeking the security of real assets. US$21.6 billion was raised by new farmland funds between 2006 and 2015. But most of this money has flowed into industrial agriculture. This type of agriculture is exposed to many hidden risks. They include volatile input costs, vulnerability to a changing climate, negative environmental impacts, and shifting consumer trends, as Millennials seek out cleaner, greener and healthier food.
The paper shows how ecological farming offers a genuine alternative. Ecological farming seeks to build soil health, minimise external inputs, recycle nutrients and energy, embrace diversity of crops and animals, and produce high value food and commodities.
Ecological farming can produce higher or similar yields, while making the most of what nature provides for free. It can enhance soils, protect wildlife and reduce flooding (now highly relevant in the UK and Ireland). It can take carbon from the atmosphere and put it in the soil, helping to slow climate change. Ecological farmers can also tap into valuable, growing markets.
Packed with charts and statistics, the paper presents case studies of profitable and sustainable farming systems that are being applied at a commercial scale. SLM Partners is investing in one of these systems already and manages 1 million acres of grazing land in Australia. Overall, the paper identifies 7 investment firms, with more than US$500 in assets under management, which are investing in these types of strategies.
You can download a copy at: http://slmpartners.com/wp-content/uploads/2016/01/SLM-Partne…