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Broken Bread Basket: Ukraine
The reach of Russia’s war on Ukraine extends much farther, and further, than the immense loss of life and the destruction of the way of life of the Ukrainian People. Leaving aside the very real risk of the use of nuclear weapons and the damage they would do, the war has already caused food shortages well beyond Ukraine’s borders.
Ukraine is known for being immensely fertile, and as one of the world’s largest producers of wheat and sunflower oil, the country is rightfully nicknamed the “Breadbasket of Europe.” Also blessed with deep seaports, Ukraine was, at least pre-war, one of the three largest exporters of grain on Earth.
What might this development mean for U.S. investors? Well, just as Walter Brooke gave a young Dustin Hoffman one word of advice (“plastics”) in 1967, Financial Poise has been speaking out since its founding about the benefits of farmland as an investment.
Back in 2010, there were already predictions that we would see the need for massively more food production:
"'Demand for food is soaring. The world has consumed more food than it has produced in nine of the past 10 years,' [according to] Susan Payne, chief executive of agricultural investment firm Emergent Asset Management. Another billion mouths to feed will probably be added in the next 15 years. 'We expect to see a resource war around 2020,' says Ms. Payne."
That last sentence has, unfortunately, proven remarkably prescient.
If you have an interest in farmland you will want to consider what sort of farmland to invest in. And if you are not interested in farmland but are interested in “farm-adjacent” investing, the food and grocery market is a $12 trillion industry that may attract your attention.