Why is George Soros investing in land in great quantities abroad? For the same reason countries such as China and India are purchasing farmlands outside their boarders.
China purchased 100,000 hectares in Zimbabwe, part of a series of investments that have led to more than a million Chinese farmers in Africa. [The American]
It is estimated that by 2050, the demand for food with population growth will double. Further, there are worries of climate change. The recent earth quake in Japan with the attendant radiation contamination of a portion of the food supply and tsunami delivery of salt water to profitable farmlands now join more traditional factors that figure into this mix:
Increasing food prices are not the only reason for sovereign interest in foreign land purchases. The threat of export embargoes and a worldwide flirtation with protectionism, especially in the United States, have frightened food importers. The move toward securing farm land in faraway places can be seen not only as a bet on increasing food prices, but also as a hedge against a breakdown in world trade. Nations are showing a marked lack of faith in their ability to import food when supplies are in short supply. [The American]
Soros started a private group to purchase farmlands around the globe as part of the new land rush or land grab as many call it. Of course Soros is in it to make money.
Steve Fairchild, editor of Today’s Farmer, reports that George Soros raised $350 million to buy farmland in Eastern Europe, Central Asia, and Africa. [The American]
And surprise, surprise, Midwest farmers are doing the same thing. They are forming private investor groups and buying farms in South America and elsewhere. And their lands are safe at this time from takeover.
Productive and profitable farmers are likely to stay on the land, and will not be vulnerable to competitors from elsewhere. Neither China, India, nor the Gulf states have shown much interest in the American Midwest. [The American]
Now a backlash against the sale of farmland to foreign interests has begun to spread.
A coup in Madagascar was at least partially caused by concern over a proposed deal with a South Korean company for a 1.3 million hectare lease. Hungary promised to allow foreign investment in farmland upon its accession to the EU. The accession agreement would allow foreign investment beginning in 2011, but most of the leading political parties in Hungary favor reneging on the deal. The Philippines nixed a land contract with China because of concerns about local food security. Farm workers in Mozambique resisted the settlement of thousands of Chinese workers on their leased property there. Brazil is promising to end foreign investment in land. Development groups worry about the displacement of local farmers, the advent of a “new form of colonialism,” and the specter of natives going hungry while food is exported to the country that owns the farmland. [The American]
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SELECTED SOURCES FOR FURTHER RESEARCH
Journal of the American Enterprise Institute The American.
Journal of Agriculture, Food Systems and Community Development
Freedom, by the way
March 25, 2011
As they say “Land is the only thing they’re not making more of.” It is frightening that governments and indiviuals are buying up farmland at such a rapid pace. I say hang on to what you’ve got. And if you don’t own any land besides the plot your home is on, forget about stocks and gold, get some American land.
samhenry
March 25, 2011
I hope I can hang on to my house with the veggie garden I’m goind to plant but then after it’s planted, do I need to have an alarm company wire it?
Angel
March 25, 2011
guess I better stock up on canned soup!..have a great weekend my friend!:)
samhenry
March 25, 2011
You had better – Wendy’s has a sign in the window that tomatoes are a requested item on sandwiches due to a shortage. Who knew?
Angel
March 25, 2011
added ya to my blogroll too~!
DarcsFalcon
March 28, 2011
Well, we all like to do that annoying eating thing. Lord knows if I could stop, I would.
As an aside, I wonder if Obama thinks Soros has “made enough money” yet? Things that make you go, “Hmmm.”
Wish I could dig in that veggie garden with you dearheart! We’d have so much fun! *hugs*
samhenry
March 28, 2011
We’ll hook hp someday!