Why invest in agricultural land?

Even two centuries ago economists such as Malthus and Ricardo praised agricultural land as the safest and best investment on earth and their reasoning applies even more strongly today. There is only a limited supply of land and rising population and rising affluence ensures that demand for agricultural produce keeps rising. The increasing demand for bio-fuels is adding to this upward pressure on land prices. Agricultural land prices in UK are currently rising fast. But they are rising much faster in places like Argentina, where they are starting from a far lower base.

There is still an increasing demand for grains to be used in foods around the World. In addition rising oil prices and global warming are forcing countries to urgently develop other sources of energy and the most efficient way to do this is to obtain it from renewable products like Soya, Wheat, Corn and Alfalfa. These commodities are all proven to be excellent generators of Bio- fuels and other alcohols.

Argentina Arable Land Prices

Please see the Argentinean Arable Land Prices in the table below (1985=100):

Source: Margenes Agrope cuarios