The Four Trends That Will Drive Farmland Prices in 2023

Buckle up!

Photo by Stephan Müller

1. Inflation and Interest Rates

2. The Energy Transition

  1. Nuclear: nuclear energy is clean and cheap to produce. I will leave it to experts the question whether it is safe or not. While certain European countries have decided to close down their nuclear power plants, others like Sweden have decided to build more of them.
  2. EV: the shift to electric vehicles is unlikely to happen before 2035 like the EU would like to. The power grid cannot at this stage sustain a complete shift to EV, and countries barely have the capacity to generate enough electricity for EVs anyway. These would require massive investments, but as interest rates raise, they’re unlikely to happen.
  3. Renewable: the problem with renewable energy is that it’s not as reliable as we would like it to be. When the temperature drops, wind turbines freeze. When the sun sets, solar panels stop producing. In both cases, recycling is extremely difficult and unsustainable. “Green” isn’t always what it sounds like.

3. The War in Ukraine

4. The New Global World Order

1. Western decoupling from China

2. The Democratic West VS the BRICS

  1. USA-Canada + Europe + South Korea + Japan + Australia-New Zealand
  2. China + Russia + Saudi Arabia + India.

5. Risks

Conclusion

  1. Arm and defence companies: the age of peaceful economic relations from the 2000s is over.
  2. Oil and gas companies: it will be a long time before we can offset Russia’s gas and oil production by our own means, especially without the help of nuclear energy.
  3. Farmland: as:
  • farming yields increase
  • energy remains high
  • farmland remains scarce
  • local production is favoured

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LandEx is the first European investment platform enabling any EU retail investors to invest in farmland. Find out more at https://landex.ai

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LandEx

LandEx is the first European investment platform enabling any EU retail investors to invest in farmland. Find out more at https://landex.ai