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The Investment Case for Farmland

Van Lanschot Kempen Investment Management

In his short story ‘How Much Land Does a Man Need?’ Leo Tolstoy explores the dangers of unchecked ambition and the importance of prioritising the good of the people in a tale about land ownership.

The same question is indeed still relevant today - how much land does mankind actually need? According to McKinsey Research, by 2030 an additional 70 to 80 million hectares of arable land will be required, leading to increased competition for suitable land.

In this paper, against the backdrop of Tolstoy’s prose, we will discuss the motivation, risks and rewards of investing in farmland. With the global demand for food, livestock and power sources fuelling the desire for land, Tolstoy’s story reminds us to find a balance between the demand for land and the protection of natural capital, which is a crucial challenge for a sustainable future.

Van Lanschot Kempen Investment Management

Friday 30th May 2025

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