Martin Burda has launched a fund called Český Fond Půdy, the first investment fund focused on farmland in the Czech Republic. While he formerly managed securities worth USD 8.1bn at the Czech investment arm of Erste Group Bank, he told Bloomberg that he believes farmland will produce better returns than stocks and bonds. “Czech farmland is among the least expensive in Europe and it offers a conservative investor something that’s very hard to come by these days: safety and a good yield,” Burda said in an interview. He predicts that rising profits for farmers will put upwards pressure on land prices.
Farming profits increased sixfold between 2009 and 2013, according to the Czech Statistics Office. The farmland fund is predicting annual returns of 6 to 10 percent by assembling large plots through multiples smaller acquisitions.
