Public Pensions Want Farmland Too
Posted on 05/15/2012
Agricultural lands in some American states are at near highs due to a rising global demand of food. TIAA-CREF, a U.S. based financial services group, is partnering with European and Canadian institutional investors to create a $2 billion global farmland investing company. Public investors want exposure to agriculture and to the global food chain. The Qatar Investment Authority owns Hassad Food that invests in farmland. The New Zealand Superannuation Fund has a rural land strategy. Investors want to exploit the emerging demand for grains and other agricultural products. Developing countries have changing taste and preferences and increasingly seek protein in their daily lives.
The investment entity will target farmland in Brazil, Australia, and the United States.
The company dubbed TIAA-CREF Global Agriculture LLC will be managed by a TIAA-CREF affiliate. AP2, British Columbia Investment Management Corporation (bcIMC), and Caisse de dépôt et placement du Québec will invest in the agricultural investment vehicle.
