June 10, 2010

 

US agricultural farms receive more investments

 

 

Foreign food companies, banks and makers of fertiliser and chemicals will boost investment in US agriculture as economic growth spurs demand, said an economist at Wells Fargo & Co., the largest US lender to farmers.

 

Farming will draw investment because the US economy is growing three times faster than the population, said Michael Swanson, the senior agricultural economist at Well Fargo. The long-term growth rate is about 2.8% annually as the population expands about 0.9%, Swanson said.

 

Swanson said economic activity per person is going to continue to grow, noting that there are good opportunities for foreign investors in the largest agricultural market in the world.

 

Bank of New Zealand already has invested US$1 billion in US agriculture from a global portfolio of US$32 billion, said Tony Arthur, the head of agribusiness for Aukland, New Zealand-based BNZ Partners, a division of the bank.

 

"We see an opportunity to leverage our agricultural knowledge in the US," Arthur said. "We will be more than a one-trick pony," by increasing investments in health care and other businesses, he said.