Agribusiness a good investment: researcher

Agribusiness a good investment: researcher article image
Investment into the top 25 percent of agricultural business in Australia is almost as good as investing in Australian shares but with lower risk, according to agribusiness research provider Australian Agribusiness Group (AAG). The recently released AAG report Does Agriculture Improve Portfolio Performance? shows that investing in the right agribusiness would have been a valuable addition to a diversified investment portfolio. "Until very recently, agriculture has been overlooked for investment," said Marcus Elgin, AAG executive chairman. "The top 25 percent of agriculture has achieved a compound annual growth rate of 10.2 percent over the last 28 years and 11.2 per cent over the last 12 years. The myth of generally poor farm performance and massive volatility has been busted." He added that he hoped the report would encourage investors to take a long term view. "The 'smart money' sees through weather, commodity prices and macro economic conditions, and it sees through the problems faced by underperforming farms," he said. To request a copy of the report, see


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