Foreign investing

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Published: February 17, 2011

Re: The Feb. 3 issue Land a wise choice for investors, farmers.

There is going to be more and more international interest in purchasing land in agricultural production and more pressure to sell your land and rent it back. It makes sense that large, net importing nations want to hedge their food security positions.

Following suit will be non-agricultural interests seeing a very strong long-term investment into global food security.

The laws of supply and demand are very strong here – land/food is in short supply. So much so that the most powerful decision makers in the world are quietly trying to secure their position while the buy in is still cheap.

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To buy land and then rent it back, no matter how it is spun, pencils out to a profit, either in a spot or a long-term position, for someone else.

For the short and medium term, land values are going to rise considerably. If it wasn’t we would not see this type of international interest.

This is going to make it more difficult for domestic producers to increase their holdings but I believe the price of our products will increase accordingly to support local producer investment into land. If at all possible, sell your land to someone who is local.

It makes me nervous to see a large portion of productive land owned by foreign investors. Representatives to these investment groups will push the point that it would be counter-productive to abuse their investment.

In my heart of hearts I know that the stewardship of the land is best kept by the people who live on it. Push your local MP very hard to lobby for a study into the potential effects of losing control of this resource.

Since I was a small boy and every year since I have had to listen to my father and others like him say, “… one day the world is going to realize that they can’t take for granted what we do as producers of food…” They are finally receiving the recognition of “I told you so.”

What this interest in our land now represents is an acknowledgement of the strength of our products and the profit we can now realize.

We are finally in the driver’s seat and if graphed linear, will only improve. It is now our turn to see the benefits of our endurance in this business, we are finally in control – Carpe Diem!

Dr. Quinn Gavaga, DVMVeterinarian and cattle rancher, Cache Creek, B.C.

About the author

Dr. Quinn Gavaga

Freelance Contributor

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