Wednesday, February 8, 2012
China's Arable Land Shortage and the Case for Farmland Investing
China's will shortly be releasing its annual white paper on agriculture. Here is this year's white paper. As the attached graph clearly shows, China's arable farmland has been shrinking precipitously. How to play the Chinese interest in farmland investing as well as the broader macro-economic perspective of shrinking arable farmland globally? Basic supply and demand indicates that when there is an increasing shortage of an asset along with a growing demand, prices go up. Hence, it is inevitable that as China and other emerging market countries continue to grow and get richer, the demands on existing farmland will become higher and farmland investments will increase in value.
Please consider our three farmland investment opportunities:
Farmland investment in Africa
Farmland investment in Europe
Farmland investment in Australia