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Farmland Investment

forestry investments

 

 

 

 

Farmland Investment Report

Farmland investments are becoming a popular alternative investment model.

Farmland is not only the source of the food, feed and fuel upon which mankind depends; it also represents a stake in a finite (and potentially diminishing) resource. When all else is stripped away, what does any organism, including mankind, really need to survive? Food and space.

For full information on farmland investment opportunities download the farm land investment report which is a very comprehensive 158 page report.

 

Farmland Investment Report

 

Every day the total population of planet earth increases by over 200,000 people. There are 1,402 million hectares of arable land, 138 million hectares of perennial croplands and 3,433 million hectares of pasture lands feeding the current population of 6.7 billion (2009). The total of 4,973 million hectares of agricultural land amounts to an average of 0.74 hectares per person. In addition to industrial crops like cotton and rubber, each of these 0.74 ha units must
produce almost all the food each person consumes.

To put this into perspective, 148,460 hectares (1,485 km2) is an area roughly the size of Greater London (1,580 km2) or twice the size of New York City (789 km2), Tokyo (617 km2) and Singapore (701 km2).6 Whilst this is a much simplified calculation, it clearly demonstrates the extreme demand pressure being placed upon the world’s agricultural land resources. In reality, the world is not adding anything like this amount of agricultural land on a yearly, let
alone daily basis. Indeed, for the last three consecutive years the record shows that total global agricultural land area (and the arable sub component) has actually diminished.

These startling figures dramatically illustrate the challenge of feeding the world’s exponentially growing population with an arithmetically growing farming base. The consequent,
increasing scarcity of farmland has resulted in rapidly rising farmland prices across almost all regions of the world. Farmland values are driven by the relationship between demand on the one side, driven primarily by the profitability of agricultural enterprise, and supply of productive
farmland on the other. More specifically, rising demand for agricultural commodities will exert demand side pressure on farmland values, whilst the restrictions on cropland expansion will exert supply side pressure. The interrelationships between supply and demand for farmland are complex. Demand for land increases when commodity prices rise. In response, supply increases if further land is brought under cultivation. However, there are many other factors at play. For example, efficiency increases or yield enhancing technologies might mean that less land is required to produce the greater supply of commodities required in the future.

For full information on farmland investment opportunities download the farm land investment report which is a very comprehensive 158 page report.

 

Farmland Investment Report

 

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