A COLDIRETTI-SWG STUDY REVEALS THAT WITHIN THE CONTEXT OF THE HOUSING CRISIS “AGRICULTURAL LAND IS WORTH MORE THAN GOLD”

Agricultural land beats out gold in the classification of investments judged most secure by Italians: this is the result of the first study on food habits in Italy after the financial crisis meltdown in a survey conducted by Coldiretti-Swg for the International Forum on Agriculture and Food held recently in Cernobbio and organized by Coldiretti in collaboration with the Ambrosetti studio.

Coldiretti revealed that in response to the question of which investments were considered the most convenient at this time, Italians chose agricultural land well ahead of gold (as well as postal bonds, bank accounts, and art works) and just behind one of the safest investments that exist, state bonds.
The top of the list is still held by housing property, but the rise of agricultural land above precious metals is testimony that agriculture is considered a sector that is worth investing in by Italians in order to reap success and to further develop an entrepreneurial activity that, among other things, allows a direct contact with nature.
This trend has already been anticipated by personalities in the world of entertainment. Gerard Depardieu has, for several years now, produced excellent Zibibbo and Moscato, while Lucio Dalla works on his white and red wines Stronzetto dell’Etna, and Mick Hucknell, the singer from Simply Red enjoys his vineyards in the Chianti region just as Sting does with his 300 hectares at the Il Palagio estate just 30 kilometers from Florence. Ottavio Missoni, Ornella Muti and Stefania Sandrelli are also enjoying agricultural land that they have acquired.
According to Coldiretti, it is not, however, by chance that foreigners have chosen Italy, where the total added value of area in hectares of agricultural land is over triple that of the U.S., double that of Great Britain, and 70% greater than that of France and Spain.
According to Ismea data the average value of terrain acquired with the support of the Institute was equal to 20,000 euros per hectare in 2008 but with strong variations that range from 2,000 euros per hectare to a maximum 207,000 euros per hectare for an apple orchard in the Trentino region, though the market quote for a hectare of vineyard land in the most celebrated areas from Tuscany to the Trentino Alto Adige can even go for 500,000 to 1 million euros per hectare.
”Agricultural land seems to be showing an anti-cyclical trend in respect to the trend of the economy with the real risk of new demand, favored by the study on ‘refuge’ goods, that will cause a further spike in prices”, noted Coldiretti president Sergio Marini. Marini also emphasized that, “land is a cost for agricultural enterprises that must grow to develop and the increase in quotes risks transforming this into further damage that can be summed up in credit squeeze”.

”Anti-speculation measures are needed” – concluded Marini – “to avoid that the principle obstacle for young agricultural entrepreneurs is increased, precisely at a time in which interest in the country is growing and, with this, the need for food and environmental safety within modern society”.



The Most Convenient Investments According to Italians

(Type of investment, % response)

1) Homes, 42

2) State bonds, 14

3) Agricultural land, 12

4) Gold, 9

5) Postal Bonds, 8

6) High return bank accounts, 5

7) Stocks, 4

8) Insurance policies, 3

9) Art works, 3

Total: 100

Source: Coldiretti-Swg survey