Agribusiness Investors Strengthen Positions in European Agriculture Amid Farmer Protests

As farmers across Europe protest against high costs and foreign competition, agribusiness investors are significantly fortifying their positions in the Spanish and European agricultural sectors, turning it into one of the continent's most dynamic and profitable investment sectors, according to a market analysis by British estate agency Foxtons.

Despite ongoing farmer protests, large investors are finding agricultural property a crisis-proof asset, with returns exceeding 15%. This resilience is attributed to the sector's necessity for food production, which is projected to grow by 60–70% to meet global population needs by 2050.

Regino Coca, founder of Cocampo, a company specialising in agricultural properties in Spain, stated, "With successive financial and political crises and even wars, rural land is the most resilient asset—the one that best manages to keep its value. Why? Because we all have to eat."

Investment funds dedicated to food and agriculture, around 950 worldwide, manage approximately €150 billion in assets. Recent data from investment advisory firm Valoral indicates that of the 32 large deals recorded in the sector, 40% were in Europe, with over half involving farmland acquisitions.

Notable European transactions include UK-based M&G acquiring a €150 million stake in Regenerate Asset Management and BNP Paribas Asset Management acquiring a majority stake in International Woodland Company.

While farmer protests persist, large corporations and investors are positioning themselves for significant changes in land ownership. The Cocampo report suggests that in the next decade, a few large corporations will coexist with farmers and landowners, shifting towards specialisation in agricultural, livestock, and sustainability products.

However, concerns have been raised about the potential negative consequences of these changes. Agricultural unions warn that the altered ownership structure may lead to the disappearance of agriculture's social and professional model, impacting the social fabric, rural populations, and the environment.

In response to these challenges, calls for strengthening agricultural cooperatives and implementing policies to ensure generational change on farms have gained momentum. In order to preserve the cultural and historical significance of the countryside, Regino Coca emphasises the significance of a controlled generational changeover, which the government encourages.

While agribusiness investors continue to capitalise on the profitability of agriculture, the ongoing dialogue between farmers, investors, and policymakers will be crucial in shaping the future of European agriculture.