Investment

Super funds snub ag because it’s hard work – and good farm statistics don’t exist

15 December 2018

Andrew Marshall, Farmonline,com
15 December 2018

Australia’s $2.6 trillion superannuation industry concedes it avoids investing in agriculture because fund managers lack experience in the industry, foreign investment rules are too complex and there is a lack of useful farm sector performance data to work with.

Super funds are also worried about environmental issues associated with agriculture, workplace safety risks and the volatility of commodity markets.

With just $2.3 billion of Australia’s mega-sized pension pool invested in the farm sector by locally managed funds, a federal parliamentary inquiry panel has urged a big shakeup in agricultural statistical information to better reflect the detail and timeliness required by investors.

The six-month-long inquiry’s findings recommended government implement a roadmap to improve agricultural statistics and encourage “co-operative maintenance of a flexible data environment”.

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