Global farmland to receive more investment in 2010

In time of economic uncertainty, farmland is regarded as a safe haven, which was proven to be the case in 2009.

Farmland - from the UK to Ukraine to Uganda - has attracted large volumes of investments, and the trend is set to continue in the coming years.

"After previous crises, land has always recovered very quickly, " head of Savills' rural research, Ian Bailey, told Agrimoney.com.

£7.5 billion fund investment for UK farmland

The global economic downturn lifted up the amount of interest in British farmland - over 170,000 acres of land are put up for sale every year, according to Savills.

There will be over £7.5 billion to be invested in UK farmland, which are currently priced at an average of £7,500 per acre (approximately £18,533 per hectare).

The company also expected UK agricultural land prices to rise each year up to 2015.

Egypt to invest in Uganda farmland

Meanwhile, one of the world's biggest grain importers Egypt is identifying land in Uganda for growing wheat.

A delegation from Cairo is due to arrive Uganda soon, following a talk between Moscow and Cairo over formalising wheat imports from Russia.

Ukraine remain attractive for foreign investments

Ukraine, among Russia and Kazakhstan, received the highest share of foreign capital in 2009.

As of February 2009, the volume of direct investments to the agrarian sector of Ukraine totalled US$620 million.

Farmland in Ukraine is famous for its fertile soil and undervalued prices.

To find out more, download our Ukrainian Agricultural Investment report now by clicking here.

Britain must produce more food

The Environmental Secretary Hilary Benn said that "food security is as important to this country's future wellbeing, and the world's, as energy security. We need to produce more food."

According to 'Food 2030: How We Get There', a new strategy published by the UK government, the Department for Environment, Food and Rural Affairs will be working towards a sustainable food supply, by making temporarily vacant land available for people to grow their own food, as well as investing in scientific research and providing assistance to farmers in developing countries.

Global farmland loss

Global farmland is disappearing at an alarming rate. In the US alone, two acres of agricultural land is lost every minute to development, according to the American Farmland Trust.

Meanwhile, more land in Africa is being lost due to climate change. A study published in the June 2009 issue of Environmental Science and Policy claimed that by 2050, up to 500,000-1,000,000 square kilometres of marginal African farmland could no longer be able to support even a subsistence level of food cropsdue to hotter conditions and shifting rainfall patterns in the continent.

Food crisis

With another 2-3 billion people in 40 years, coupled with climate change, the world is facing a potential food crisis.

Food prices reached a record high level between 2007 and 2008, and as the New Year starts, analysts are expecting another food price spike soon.

Savvy investors are taking this opportunity investing in agricultural land to reap the rewards and to help feed the world. One of the hottest destinations is Ukraine, the "bread basket" of Europe.

70% of Ukraine's land is arable land. Moreover, it has 40% of all rich black earth soil in the world.

By leasing farmland in Ukraine, investors can enjoy cash flow generation from farming operations, as well as the value appreciation on agricultural land.

Current wheat yield in the country is about 3.2 metric tonnes per hectare, and it has room to grow up to 8 metric tonnes per hectare and to produce a lot more food for the world.

Find out more by downloading our Ukrainian Agricultural Investment report by clicking here.