Food is Gold, So Billions Invested in Farming

By: TraderMark Thursday, June 05, 2008 10:06 PM

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Thanks to the multiple (5!) readers who sent me this same article - most have been with me for a long while so they know one theme I proposed starting in the winter - the value of farmland and hard assets in the agriculture industry.

I first wrote about it on the blog on Feb 1 (Starting Position in Powershares DB Agriculture Fund)

If I had a way to buy futures contracts on farmland I'd be buying that too. And yes I am very serious. I think values for farmland across the world are going to rocket in the next decade.

Then on Feb 8 (Wheat is the New Corn)

This is part of the very awful cycle I've been talking about since last summer. Take out all the issues about weather, droughts, climate change, whatever. The simple fact is new farmland is not being brought online at a very quick pace. Crop yields are increasing but not nearly enough to support demand.

The way things are going, within a decade farmland is going to have more value than ocean front property.

Then on Mar 12 (Grain Boom May Spark Rural Revival)

I've said in the past if there was an easy instrument to purchase farmland, I'd like to be in it. Even more so in the former Soviet satellite nations where farmland is much cheaper than the American heartland.

Etc. Quite a few other posts touched on this topic, and today in the NYTimes we have a great story outlining that "smart money" is following my game plan. If only I had the funds to follow up on my own ideas. Notice who is in the middle of this all - Blackrock (BLK) who else.

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