Under current market conditions and due to shortage in agricultural output, many investors are now seeking simple, secure and transparent investment structures, preferably involving direct ownership of the underlying asset. Both institutional and private investors look for alternative asset classes to boost returns on their investment without dramatically altering their overall risk profile and maintain good long-term fundamentals to support capital growth in an investment environment where short-term visibility is at historic lows.
Farmland, Agriculture and Reforestation may offer superior performance in an inflationary environment, unusually high levels of correlation between traditional asset classes and their subcomponents. Therefore, many world-class Pension Funds are deepening their commitment to Farmland, upping investments by Billions of U.S. dollars and moving to active strategies, as a hedge against potential inflation and to diversify from riskier investments characterised by price volatility in mainstream asset classes, concerns over inflation in light of large scale quantitative easing (increases to the money supply) in many economies (U.S., European Union, etc.).
Based on their reputation of Excellence, Municipalities and Regional Governments in many countries have formally invited Sidéco S. A. and ECOPROSUISSE to assist them in increasing their farmland and forestry potential, bring in new investments, and boost their production output. In return, the investor acquires beneficial ownership of the Land, with a Local Company retaining legal title. At the same time the shareholders of the Local Company will transfer to the Investorʼs Agent as security a corresponding number of shares in the Local Company. And the Investorʼs Agent will enter a formal and binding Shareholders Agreement. This gave birth to the new Green Line activities by Sidéco S. A. and ECOPROSUISSE.