Wealthy Nations Buying Large Farm Tracts in Africa

In the face of food shortages and with demand for biofuels growing, an increasing number of wealthy nations are buying up land in developing countries, particularly in Africa, to ensure a steady supply of crops. A South Korean firm last month sought a 99-year lease to cultivate maize and oil palm on 1.3 million hectares (3.2 million acres) in Madagascar; several countries are growing sugar cane in Tanzania to produce bioethanol for the European market; and investors from Persian Gulf states are leasing or purchasing farmland across Africa. Other firms, including a British hedge fund, are making major investments in farmland in South America and Russia. Some analysts are concerned that this spate of foreign investment will cause a political backlash and jeopardize the lifestyles of local farmers. But others predict the infusion of foreign dollars will mean new technology, new roads, and new opportunities. “These deals could provide more security and predictability for poor farmers than just selling crops on open markets,” said Duncan Green of the anti-poverty group, Oxfam.