Rising global population and decreasing arable land pose a significant challenge for food security, but they could also produce a compelling investment opportunity, according to Bruce King, who leads the agriculture business for New Forests in Australia.
In a presentation at CE-EM’s Forestry & Agriculture Investment Summit in London, the head of New Agriculture told delegates of the potential for institutional investors to play a key role in driving positive environmental outcomes while generating strong financial returns.
King showed data on population growth and urban sprawl, highlighting how these factors are putting pressure on available land for food production, potentially creating a food security crisis if solutions are not found.
“If we want to drive meaningful change globally, then we must recognise that agriculture has a much larger investable universe,” he said.
King cited New Agriculture’s “landscape management” approach to sustainable agriculture, which he said integrates sustainable land management practices directly with agricultural production. The two-pronged approach aims to achieve both food security and environmental well-being.
According to King, New Agriculture – which has been managing farm assets since 2014 – currently uses an approach that includes the adoption of technology and the implementation of precision agriculture.
“But what we see as just being part of good business practice and other methodologies, will help you to reduce your input costs, improve gross margin, while also focusing on delivering a sustainable return on a sustainable business,” he said.
King presented case studies from mixed-farming operations and vast rangelands, highlighting how they integrate sustainable practices with production goals, showing a future where sustainable agriculture can address food security concerns while generating strong financial returns.
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