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Land Investment in The Economist

The latest edition of The Economist tackles the problem of feeding the world. According to the front-cover feature, investment in farming and agricultural land is a must.

The issue of food security is a hot topic and the subject of plenty of news articles and TV reports. The latest by The Economist is titled ‘How to feed the world' and published to coincide with the United Nations (UN) food summit in Rome.

The article highlights the contrast between the first UN food summit held in 1974 and the current situation. At the 1974 Rome conference, US Secretary of State, Henry Kissinger pledged that within a decade the world hunger problem would be solved. Over three decades later, not only has the problem not been solved; it has got worse.

The UN calculates that around 1 billion people currently go hungry in the world. Unless urgent action is taken to produce more food, this figure will only get higher. The world's population is expected to grow by over 30% by 2050 when the demand for food will have increased by 70% (and the demand for meat by 100%).

According to The Economist, food prices are likely to continue to go up, it being "too late to avoid another bout of price rises" despite the global economic slowdown and bumper harvests. Action needs to be taken now meaning that agricultural investment is vital.

The Economist highlights the massive recent investment in agriculture - "over the past year investment has risen faster than anyone expected". But more is needed and it must be the right sort of investment. The article stresses that investment should be to boost "world food production without gobbling up land and water". Few countries offer this possibility, although the UN Food and Agriculture Organisation (FAO) earmarked land in Ukraine, Russia and Kazakhstan as ideal for agricultural expansion. FAO believes these three countries could have a "crucial impact on the world food situation".

The Economist reports that last year's food price hikes prompted major investment in agriculture. The article claims that the World Bank and many developed countries have doubled the funds invested in agriculture. According to the article, "agriculture has gone from being a sideshow for the government into its main event, which everyone needs to worry about". It goes on to say that "farming is far and away the single most important economic activity".

The Economist claims technology in agriculture is vital - an argument backed by the Royal Society in a report earlier this month. The Royal Society called for the UK to spend £2 billion on crop research over the next decade to ensure that the world has enough to eat by 2050.

The Economist front-cover feature makes interesting reading for anyone making investment in agricultural land anywhere be it in Ukraine or the UK. The feature adds further persuasive arguments to the potential such an investment offers. As The Economist concludes, "Investing in agriculture is a boon; rejecting agricultural markets would be a disaster".

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