The Kyoto Protocol is an obligation made by all countries to cut their use of non renewable resources by 80% by 2050. Here is where we can come back to farmland and the growing market that is renewable crops and the land underpinning it. As Power stations throughout the UK start to follow the trend and invest heavily in harnessing the power of renewable resources, this may well drive up the prices of green energy crops such as Miscanthus grass which is a co-burner to be used with coal in the production of electricity. Now this may well increase your annual yield through higher revenues, but with this, the land itself should increase in value as it is now worth more to the investor.
So let’s recap
– The price of farmland is steadily increasing as demand increases and supply decreases.
– Farmland value has increased on average by 15% year on year.
– It is a diminishing resource that needs to be sustained.
– It will help the UK contribute to their Kyoto protocol obligations.
– More and more people are starting to see the benefits of being “Armchair Farmers”.
– There is around £11 billion of borrowing secured on assets worth over £170 billion, excluding stocks and growing crops.
– It is the foundation of the built environment!
Remember the secret to success is to balance your portfolio. Where better than UK farmland?Back to news