A developed world with slower growth, a large fiscal deficit and near zero rates over the next few years, inflationary pressures in emerging economies, and larger political and economic uncertainty bodes well for history’s oldest form of wealth,” Barclays Capital said.

Some say the most reliable way to hedge against catastrophe can be to buy US farmland, which has surged in value this year as food prices have soared and bad weather has tightened the global food supply.

The value of farm acreage in the five US midwest farm states grew 17 percent in the second quarter of 2011, its largest year-on-year increase since the 1970s, according to the Federal Reserve Bank of Chicago.

”Since the financial crisis, we’ve seen investor interest rise every year,” Stephen Johnston, chief investment officer for Agcapita, a Canadian farmland investment fund, told AFP.

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