New Mexico SIC’s Appetite for Agriculture Grows
On a global basis, direct farmland investing has lured institutional investors on possible diversification and inflation protection benefits. Meanwhile, the world’s population continues to expand and consumption of protein foods has rapidly grown in the past fifty years. According to United Nation figures, the world’s population is currently adding 25 million people per annum – around three times the 2014 population of New York City. Long-term institutional investors such as sovereign funds and endowments are seeking to receive exposure to agriculture assets whether on a strategic basis or for diversification purposes. The New Mexico State Investment Council (NMSIC) committed US$ 75 million toward Brazilian agriculture. The wealth fund has started allocating capital to farmland investments in the fund’s real assets portfolio. As of April 2015, NMSIC has an allocation of 9% to real assets.
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