Other factors are at play in the volatile agricultural industry. According to Chris Mayer, “Fertile soil – good dirt – may become more important to land values than oil or minerals in the ground.”

Chris says fertile farmland has been in decline since the 1980s due to urban sprawl and soil erosion. This makes it a lucrative asset. And it makes companies like Cresud (NASDAQ:CRESY), which owns large swathes of farmland in Argentina, a great stock play.

More from Chris on MoneyWeek:

The mainstream press focuses on issues such as population, dietary shifts, and the impact of biofuels. One thing that doesn’t get talked about much may be the most important thing of all: a growing shortage of quality topsoil. Call it the topsoil crisis…

Quality soil is loose, clumpy, filled with air pockets, and teeming with life. It’s a complex microecosystem all its own. On average, the planet has little more than three feet of topsoil spread over its surface. The Seattle Post-Intelligencer calls it “the shallow skin of nutrient-rich matter that sustains most of our food.”

The problem is that we’re losing it faster than we can replace it. And replacing it isn’t easy. It grows back an inch or two over hundreds of years.

This is not lost on certain far-seeing investors. Jeremy Grantham, the curmudgeonly head of the money manager GMO, wrote about soil depletion in his last quarterly letter. “Our farmers are in the mining business! Yes, the soil is incredibly deep, but it is still finite.” For every bushel of wheat produced, we lose two bushels of topsoil.

[...] In any case, it seems safe to say that good dirt is in short supply. The obvious investment conclusion: Buy farmland. That’s hard to do as an individual investor, although there are at least a few options. One is Cresud (NASDAQ:CRESY), which owns a million acres of farmland in Argentina. It trades on the Nasdaq. Another way into the idea is to own farming assets in grain-exporting countries, like Canada.

This from the Seattle Post-Intelligencer on the topsoil crisis facing the planet:

The planet is getting skinned.

While many worry about the potential consequences of atmospheric warming, a few experts are trying to call attention to another global crisis quietly taking place under our feet.

Call it the thin brown line. Dirt. On average, the planet is covered with little more than 3 feet of topsoil — the shallow skin of nutrient-rich matter that sustains most of our food and appears to play a critical role in supporting life on Earth.

“We’re losing more and more of it every day,” said David Montgomery, a geologist at the University of Washington. “The estimate is that we are now losing about 1 percent of our topsoil every year to erosion, most of this caused by agriculture.”

“It’s just crazy,” fumed John Aeschliman, a fifth-generation farmer who grows wheat and other grains on the Palouse near the tiny town of Almota, just west of Pullman.

“We’re tearing up the soil and watching tons of it wash away every year,” Aeschliman said. He’s one of a growing number of farmers trying to persuade others to adopt “no-till” methods, which involve not tilling the land between plantings, leaving crop stubble to reduce erosion and planting new seeds between the stubble rows.

Source: Cash in on the Rush to Secure Quality Farmland