Barclay Ballard

Although currently underserved by capital markets, agroforestry presents farmers and investors with a way of creating more resilient, productive nature-based assets.

Farmers’ protests and political backtracking are not exactly conducive to the kind of large-scale backing required for sustainable agriculture to thrive. Even so, the movement will take some stopping.

Compliance is essential to all asset classes but, increasingly, timberland managers view rules and government policy as just the starting point for their next investment strategies.

Economic volatility over the past year has showcased the benefits of investing in timberland as an inflation hedge. But careful portfolio management remains key.

Although the value of natural capital is being recognized, tighter regulation, greater financial incentives and a cultural shift will all be required in agri to safeguard returns and the environment.

It is not just investors that stand to benefit from the expected proliferation of robotics and automation technologies in the agricultural sector.