Hedgefunds are buying farmland in South America for Doomsday Scenario

On the rare occasion that New Yorkers talk about farming, it’s usually something along the lines of what sort of organic kale to plant in the vanity garden at the second house in the Adirondacks. But on a recent afternoon, The Observer had a conversation of a different sort about agricultural pursuits with a hedge fund manager he’d met at one of the many dark-paneled private clubs in midtown a few weeks prior. “A friend of mine is actually the largest owner of agricultural land in Uruguay,” said the hedge fund manager. “He’s a year older than I am. We’re somewhere [around] the 15th-largest farmers in America right now.”

“We,” as in, his hedge fund.

It may seem a little odd that in 2011 anyone’s thinking of putting money into assets that would have seemed attractive in 1911, but there’s something in the air-namely, fear. The hedge fund manager and others like him envision a doomsday scenario catalyzed by a weak dollar, higher-than-you-think inflation and an uncertain political climate here and abroad.

NY Observer

Categories: Economics, South America

1 reply

  1. During the ‘cold war’ many ‘high net worth individuals’ from Western Europe purchased farms first in the US and Canada and later in South Africa and Australia (thinking that ‘atomic fall out will endanger the whole Northern hemisphere). Many Western European companies had a ‘back-up’ plan for relocating too. Nothing new therefore…

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