At the 64th CFA Institute Annual Conference in Edinburgh, Pippa Malmgren of Principalis Asset Management noted that money managers should keep a close eye on commodity prices, while author and veteran investor Jim Rogers said he would prefer hard assets like farmland over financial assets. At the 65th CFA Institute Annual Conference in Chicago, delegates will have the opportunity to learn more about the intersection of farmland and financial assets at a session with Shonda Warner of Chess Ag Full Harvest Partners.
Ms. Warner founded Chess Ag in 2006, after working as a trader for Cargill — the largest food producer in the U.S. — and as a derivatives trader for Goldman Sachs. She felt that an institutional land investor could realize significant gains by investing in agriculture, an idea that appears particularly accurate in light of the USDA’s economic research service forecast of a 28% increase in net farm income for 2011.
Historically, agriculture has not been an accessible investment sector for most institutional investors, and according to Warner, “Half of all farmland that trades in the United States never sees a broker.” However, Ms. Warner has shared some of her insights into the agriculture industry and risks in the farmland sector during a CFA Institute Take 15 podcast and will be going into greater detail during her session in Chicago.
You can register to attend the conference to hear more from Ms. Warner in person, and follow this blog for more speaker updates as the conference draws closer.