As per statistics, an estimated 50 to 80 million hectares of land area have been acquired by international investors in low-income and mid-income developing countries. Agricultural land and residential property investment have increased in the last three to four years due to several reasons.
The demand for food grains is increasing globally due to the rise in population and the shortage of food in low- income countries, which increases pressure on global food production. To know about residential property for sale nearby online you can search the browser.
Food prices have increased at a higher rate since 2007 – 2008, which raises the need to enhance food grain production and also to promote food grain security in low-income countries.
The investors have benefited in many ways from investment in agricultural land. Investment in farmland is an ethical investment that allows investors to earn returns through yield and land value accreditations, additionally, it also provides tax benefits. Investment in residential property is the overheated sector and hence, investors prefer low-cost real estate options as compared to high-cost properties.
The increasing demand for food, biofuel, and feed, timber, and minerals has resulted in the large scale land acquisition of agricultural land by investors. The government of some developing countries is promoting foreign direct investments as it provides funds that can be invested in development projects.
These agriculture-based projects offer employment, education, and health benefits. However, the governments should communicate with the small farmers, forest dwellers, and rural women to ensure the developments are offering the desired benefits to the local population. Globally governments are promoting farmland investments to gain food grain security.