The complex dynamics of agriculture as a financial asset: introduction to symposium

Making a financial market: the economization and topology of Farmland REITs

“…This event attracted investors seeking to profit from price changes in commodities futures markets, land appreciation, and returns from yield production (Fairbairn 2014;McMichael 2012;Spratt 2013). Since then, food prices have stabilized, but the creation of mechanisms for financial investments in agriculture had lasting consequences (Clapp, Isakson and Visser 2016). Most futures contracts are now held by financial speculators, farmland equity funds have proliferated, and financial deregulation has enabled retail investors to hold shares in direct land investments (Fairbairn 2014;Spratt 2013).…”

“…when the price of commodities changes drastically, that of land remains relatively stable), which makes it attractive for investors seeking to smooth the risks of their investments. Finally, a key aspect driving investors towards farmland is its perceived scarcity, which creates expectations of price increases (Fairbairn 2014;Gunnoe 2014;Visser 2016). The material conditions of farmland, as a finite and productive object, make it attractive for financial investors.…”

“…An object becomes an asset by a process in which the interested actors and the material qualities of the object conjointly construct its value. This process involves the work of different actors, some with more power than others, to re-shape the object through the inscription of knowledge and material devices that re-purpose it as an asset (Çalışkan and Callon 2009;Visser 2016). In the case of farmland, this process may involve creating discourses that portray farmland as an appreciating object that should be available to investors, and the use of capital-intensive machinery to modify it and standardize it in relation to other financialized tracts of farmland.…”

“…Companies involved in any stage of agricultural production are placing more emphasis on their financial performance, and financial investors are buying assets devoted to agricultural production. This literature has shown how changes in financial regulations, along with the beliefs and actions of governments, investors, and agri-food companies have facilitated the financialization of agriculture (Fairbairn 2014;Isakson 2014;Visser 2016). The perspective of economization provides further details about this process.…”

“…This process has made farm workers and small-scale farmers more vulnerable, while strengthening the position of financial investors in agriculture (Clapp 2014;Fairbairn 2014;Isakson 2014). A part of the literature on the financialization of agriculture has focused on the creation of farmland as a financial asset, drawing from relevant perspectives of Science and Technology Studies (STS) (see Li 2014;Visser 2016). STS perspectives offer a relevant view of the concrete workings and mechanisms through which financial products shape landscapes and livelihoods in agriculture.…”