# financial institutions buying farms and ag business



## joe sod (12 Jul 2007)

I read in a newspaper yesterday that an australian bank macquarie bank is buying sheep and cattle stations in australia and also slaughter houses. Just wondering whether this is a growing trend, and will financial institutions wordwide start buying up farmland.


----------



## Brendan Burgess (12 Jul 2007)

It wouldn't really make any sense in Ireland. The economic returns are just not there for farming. The small returns are heavily dependent on subsidies which is not how a financial institution would like to plan its business. 

Brendan


----------



## joe sod (12 Jul 2007)

maybe not in ireland, but if big institutions control large tracts of farmland then competition between producers would be diminished and producers pricing power increased. One of the big weaknesses  farmers have faced today is their lack of pricing power. If you have less producers then it will mean rising food prices


----------

