By definition, farming is an old industry with substantial investments and, in many cases, little returns on capital employed. Farm gates have traditionally been closed to capital markets. Families hold nine in ten farms. Demographic developments are forcing a shift: the average age of farmers in Europe and the Americas is in the late fifties. They often have no successor and offspring do not want to farm or cannot afford to buy out family members.
As a consequence, farms are typically mismanaged, low performing, undercapitalized and not efficiently integrated. Additionally, adopting new technologies and farming at ever-greater scale require the sort of capital few farmers have.
A changing macro- and microeconomic framework affects the traditional farming industry, and consequently creates substantial investment opportunities.