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Arable Land Shortage and the Case for Agriculture and Farmland Investing

One of the major reasons for our bullishness on farmland investing is the availability of quality farmland. As the graph below from the UN Food and Agriculture Organization (FAO) clearly demonstrates, the amount of arable farmland has already shrunk and will continue to do so.

 

China has actually been a particular victim of this trend. To take a more specific example of this trend. China currently contains 20pc of the world’s population, but only 7pc of its arable farmland. Unfortunately for the Chinese, China has already been losing arable farmland at an alarming rate. According to this article from the English language China Daily, the amount of arable farmland in China has fallen sharply.