Natural resources comprise different production inputs that are basic to the economy and everyday life:
- plants and animals (i.e., soft commodities);
- energy and minerals (hard commodities); and metals and industrial goods used to manufacture goods and produce services.
A notable proportion of natural resource investments are directly through farmland, raw land with exploration and mining rights, and timberland. Direct ownership spans a broad spectrum: from farmers producing grain to institutional investors building solar farms.
Land Investments vs. Real Estate
To make investments in raw land, timberland, or farmland, investors need specialised knowledge and understanding of the specifics of the natural resource. Investors investing directly in timberland need forest investment expertise to manage a forest over its life cycle. Many large institutional investors that do not have this expertise rely on timberland investment management organisations (TIMOs), entities that support institutional investors by managing their investments in timberland by analysing and acquiring suitable timberland holdings.
Features and Forms of Farmland and Timberland Investment
