Farmland Investments in Africa - Can They Be Both Profitable and Sustainable

As global stock markets delay wildly, individual investors, private equity funds and other mammoth institutions are increasingly looking to alternative investments to store account and stability to their portfolios.

Addicted the rapid scuttle - up in agricultural produce and food prices recently, farmland investments are becoming an increasingly attractive asset class. For both institutional and individual investors with long time horizons, agricultural land is an ideal method for diversifying beyond a portfolio of in truth stocks and bonds, whilst also providing a steady flash of good velvet income and offering estimable upside potential for chief gains due to the upping agricultural " super path " as coined by noted farmland and merchandise tycoon Jim Rogers.

In the UK for copy, over the last ten years, agricultural land has important roughly 13 per cent per year in the according to Investment Property Databank ( IPD ). The US and other Western countries have empitic companion farmland investment returns. Farmland prices have wherefore skyrocketed, drawing near as high as 17, 300 ( approximately $30, 000 ) per hectare in the northwest of England to take right one exemplar.

As a repercussion, investors are increasingly turning their interest in agricultural land investing to areas of the world where farmland prices are starting from a much lower base, thereby providing much greater upside potential. One area where this has been particularly prevalent is Africa, where hedge funds and other large institutions have been making large agricultural farmland investments. Hedge funds and private equity funds alone have purchased 148 million acres of farmland in just the last three years. Just to take one example, the UK ' s well known Guardian newspaper just outlined how major a full 5pc of African agricultural land had been purchased or leased by outside investors, and that more than 200m hectares ( 495m acres ) of land - roughly eight times the size of the UK - were sold or leased between 2000 and 2010.

Given the long history of colonial exploitation in Africa, there has been increasing resistance to what is perceived by many western Non - Governmental Organisations as well as Africans as a " foreign land grab. " Whilst some of these feelings may be based on old stereotypes rather than current conditions, there is no question that some abuses have occurred. Just to take one example, farmlandgrab. org just published an article arguing that a US firm was running roughshod over the local population in Cameroon with one of its agriculture investment.

It is undoubtedly true that frequently large institutional investors make deals directly with the central governments of African countries. Given the amount of corruption and generally poor governance that still exists in Africa, the investment capital frequently disappear into the pockets of corrupt local officials whilst local farmers are forcibly removed from their homes and lands.

By the same token, it is far from true that all foreign investments in African farmland are predatory and exploitive. Global consultancy McKinsey recently produced a report on the future of Africa which noted that the continent had over 25 per cent of the globe ' s arable land yet produced only ten per cent of agricultural output. McKinsey argued that up to $50bn / year of African agricultural farmland investment would be needed to bring the sector up to global standards and allow African agriculture to maximize its potential output.

One reason to consider outside investments in African farmland is that the amount arable land globally has been decreasing. As farmland continues to be lost to urbanization, transportation networks and real estate development, the world must try to feed more people on less farmland. Africa, however, holds approximately 60 % of the world ' s remaining uncultivated land that is suitable for farming, so looking at food security from a broader perspective, Africa has a an opportunity to feed both itself and the world in the coming decades.

Given the need for investment in African agriculture, there is no reason that foreign farmland investments on the continent cannot be structured as a win - win for both private investors and the host country populations. With the right guidelines and intentions, foreign investment in African farmland can be both ethical and profitable. The major issue is whether a set of basic principles for " win - win " farmland investment in Africa can be developed. Just as an example, we believe that the following principles can be used to evaluate the fairness of foreign farmland investment in Africa:

1. The investment was directed at completely unused land, and none of the local population has been removed from any of the land since it was not in use as a food source;

2. The farmland investment was negotiated directly with local villagers and tribal chiefs, so there was no chance for corruption at senior government levels;

3. Farmland investments in developing countries should not simply be premised on food security concerns by the foreign investors, who may want to simply ship the entire crop production back to their home countries;

4. The workforce should as much as possible be local hires who should be paid a fair wage well above the minimum for that country; and

5. Finally, foreign investors in African farmland should also have at least some kind of community re - investment programme in the host country.

Whilst these principles will not solve every concern of local African NGOs, they are at least a starting point for considering examining whether a farmland investment is structured as a win - win for both the investor and the local population, or if the investor is behaving in an inherently exploitative manner. One other interesting factor is that when farmland investment projects are structured such that retail investors can participate, we have seen that these types of individual investors demand that any project they are involved with be both ethical and profitable.

Organic Gardening 101 Principles of Sustainable Agriculture

In assembling, " organic " defines a compound that contains carbon as an element. Organic compounds were believed to be derived single from living organisms, both plant and animal. However, religious to World War II, organic compounds were also successfully synthesized in laboratories without coming from living organisms. To a chemist, an organic compound containing carbon can be either a ) derived from living organisms or b ) synthesized in the lab. In the horticultural world, though, " organic " refers to a method of sustainable agriculture that includes the practice of not applying synthetic fertilizers or pesticides to the soil or to plants. Well, wait a minute - if organic compounds can be either life - based or synthetic - based, why do we cite to " organic gardening " as the absence of synthetic measures? Hmm, this could be confusing... but let ' s simplify.

In 1940, Lord Northbourne is credited for first using the term " organic farming " in his book " Look to the Land ". It is generally accepted that his term was philosophically based, with the implied meaning of interdependency of living things for other living things. Regardless of his original intention, the term " organic farming " has been around ever since. It is with its commonly accepted usage with which we will address some gardening practices.

Let ' s start with an explanation of a term that was mentioned above - " sustainable agriculture ". This term is often used in conjunction with organic gardening definitions. The goal of sustainable agriculture is to replenish the soil as its nutrients are depleted so that the soil and its plantings become self - sustaining. It is this principle of building the soil that is the foundation to fundamentals of organic gardening; i. e., build your soil stronger and the soil will build your plants stronger. These stronger plants can better withstand drought, disease, and insect damage.

Soil building, through the addition of organic amendments, improves soil tilth ( or the overall condition of the soil ). This improvement helps to prevent soil compaction by providing a favorable environment for earthworms and by increasing microbial activity. If the notion of lots of creepy - crawly earthworms isn ' t exactly your cup of tea, consider this: earthworms help to loosen the soil, which facilitates movement of air and water into the soil, plus they add nutritive value to the soil through their castings. What are " castings "? Pure gold in gardeners ' terms, castings are simply worm poop. These castings provide a fabulous source of organic nutrients that will be of great benefit to your plantings.

Composting is another fundamental principle of organic gardening, and another component of soil building. By simply relocating kitchen scraps ( except for meat products ); for example, vegetable peelings, eggshells, coffee grounds, etc., into a compost bin, or a compost pile, a gardener will be rewarded with lots of humus ( decayed plant waste ) to recycle into the garden. Other good additions to the compost pile are leaves and grass clippings. Keep the pile moist, but not soggy, and turn it or mix it from time to time.

If you set a goal to begin building your soil so that it will better sustain your plantings, you are on your way to practicing principles of organic gardening. When you are ready to advance your organic gardening skills, it will be time to implement additional measures. Beyond composting and using worm castings for your garden, planting cover crops, practicing crop rotation, and conservation tillage are other methods that serious organic gardeners use. All these fundamentals of organic gardening will benefit your own backyard garden and you will grow healthy vegetables for your family.

The Need Of The Hour Sustainable Agriculture

The world population is growing by leaps and dialectics. There are familiar more mouths to feed than the food that is produced. The researches carried out in agriculture indicate that we need more than condign crops to feed the ever - growing population. We need agriculture, which is sustainable. It is not something rightful about the present; its about the future as well. Many world areas, which yielded great harvests in the pasts, have now become deserts due to the incorrect practices of agriculture. Hence, what we really need is sustainable agriculture that can not unparalleled feed the present population but also fix up for the future as well.

Sustainable agriculture is a new branch of science, which has recently come up owing to the growing need for continual production of food. Sustainable agriculture deals with building up a well - organized bio friendly system that can yield a high food production every year without wasting the natural resources and harming the fertility of the land. No doubt it is important to produce food today, however, it is also important to see that todays food production does not bring drought tomorrow. The depletion of natural resources like food, water and fresh air can result in great calamities like droughts and famish.

So, what does sustainable agriculture mean? Simply put it deals in three aspects:

1. Ensuring that the demand for food is met today

2. Making sure that the next generation is able to meet the demand for food, taking into account the growing problem of depleting natural resources like soil and water

3. Ensuring that these natural resources like soil and water do not get depleted

However sustainable agriculture is not as easy as it sounds. The theory may be easy but putting it into practice is not. For centuries, farmers have been following a particular way of growing crops. With this branch of agriculture, the entire paradigm takes a new perspective. Hence farmers need to produce food and products, which are safe and popular. While doing that, they also need to stay abreast of competition and also follow the politician and legal norms.

Changing the pattern of agriculture that has been prevalent over the years is not an easy task. However, considering the future implications, it is imperative to develop this b ranch. Every year, the available land for agriculture is either being eaten up by development or becoming arid or a wasteland.

The farmers also need to be supported in this endeavor by the government and other bodies by lowering taxes and lesser duties. They should also be educated about the amount of fertilizers, pesticides to be used and advanced cropping techniques to enhance the fertility of the soil. At the moment, the situation is not ideal; however the governments have begun to realize the importance of sustainable agriculture. All we need to do is carry on the same road and ensure that our future generations have adequate food and natural resources.