← FarmCPA Home

Corporate Farms in Africa

By: | Trackback URL | 1 Comment

December 3rd, 2009

africa_mapIn the latest issue of Business Week magazine is a very good article on the farm land rush that is occurring in Africa and other under-developed countries around the world.

There are many issues surrounding these investments in third word farming enterprises.  Although it may provide jobs for these people, it also is disturbing the economic and social structure of these societies.  It appears that with Africa being more than three times larger than the US and with lots of good farmland that has never been aggressively farmed, that this may be last land available to be developed on a large scale basis.

In the first half of 2009, more than $2 billion was raised to invest in farmland, according to Agcapita, a Calgary based ag fund.  A lot of this money will be invested into Kenya, Sudan, Tanzania and Ethiopia.  In June, 2009, the first annual Global AgInvesting was held which brought together these fund managers and investors looking to invest in farmland.

Although $2 billion sounds like a lot of money, it would only purchase about 400,000 acres of land in Iowa at $5,000 per acre.  This would be equal a county with about 625 square miles.

I personally think that we will see more of these investments over the next several years as we continue to add world population.  We have been the most technologically advanced farming country in the world, but these technologies change quickly and Africa can catch up.  However, it may take several decades.

Please read the article and let me know what you think of the issues raised.

← FarmCPA Home

1 Comment

  • January 16, 2010 at 11:02 pm

    Mossi Luba

    Good comment. Nice that you take care about these important african questions. But sometimes I have the feeling that it is nonsense to think about it. Africa is somehow dead from our mindes and from news stories. There seems to be only tribal wars and frustrations in a large range of African areas. So why to look at it? … Your are right: Better to go for it than to leave African questions alone. Go on please!.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to this blog by:

Previous Posts

Events

View upcoming speaking engagements and other networking events for Paul Neiffer and CliftonLarsonAllen’s agribusiness team.

See All

  • Twitter Feed

    I hope KC does not waste all their hits tonight 1 day ago

    Nothing better (for a farm boy) pic.twitter.com/DUShoT5cpF

    5 days ago

    If you have higher yields or go all corn for the 2014 crop year consider ARC-IC. It may more than offset base acre penalty 7 days ago

    Presenting two farm bill seminars today. Dayton and Walla Walla 1 week ago

    Netflix down $110 in after hours trading. Sign of momentum stocks going flat? 2 weeks ago

    Getting ready to go to LA to defend my son and I APU Alumni golf tournament victory last year. I may have to carry him again 2 weeks ago

    Everybody worried about bubble in land market. They should worry about stock market bubble 2 weeks ago

    77 degrees on October 8. Perfect. 3 weeks ago

    Somehow IRS listed several counties in Iowa as drought stricken. Hard to believe after all the rain this year 4 weeks ago