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Old 06-28-2009, 07:23 PM
 
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"Those who brought us the crisis have found a new profit-making toy. It’s land-grabbing, 21st-century style. Around the world, private investors and multinational mining, automotive, agrochemical and seed corporations are scouting out and taking over vast tracts of farmland, many in African countries that are still struggling to feed themselves.

Arable land has become the newest commodity for the speculators that author Naomi Klein so aptly describes as "disaster capitalists" because they profit from disasters, often ones they help create.

These financial wheeler-dealers created the economic meltdown by dealing bad debts at the expense of ordinary people — productive and hard-working citizens who pay their taxes every year, and don’t know much about tax havens, numbered bank accounts or any of the places really rich people stash their wealth. The land these "investors" are now grabbing for offshore farms is their new safe, and profitable, haven.

The investment gurus point out to their institutional investors that the prices of farmland are sure to rise in coming years in the face of a global food crisis and the rush to turn fertile food-crop land into plantations for agrofuels to turn still more profits. Theirs is a self-fulfilling prophecy because by speculating on land, they are already driving up the prices.

Reza Vishaki, head of alternatives at the fund manager Insight Investment, says, "The single best recession hedge of the next 10 or 15 years is farmland." He says demand is going up strongly on a global basis."

This land is our land? - Nova Scotia News - TheChronicleHerald.ca (http://thechronicleherald.ca/Letters/1129587.html - broken link)
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Old 06-28-2009, 11:07 PM
 
Location: SE Florida
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I agree with farmland but I would believe not only the land would become more valuable due to what it can produce but the water rights to the land could hold an additional value.
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Old 06-29-2009, 05:58 AM
 
Location: North Central Florida
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Quote:
Originally Posted by Synergy1 View Post
I agree with farmland but I would believe not only the land would become more valuable due to what it can produce but the water rights to the land could hold an additional value.

Perhaps, but if the "Clean water restoration act" is passed, the fedgov will "own" all water, everywhere within the borders of the USA.

Senate Bill 787........

www.opencongress.org/bill-s787/show (broken link)

But back to land....I recall reading somewhere,(probably in the C-D forums) that there was an idea of reclaiming large areas of slum type neighborhoods in the city of Detroit for use as agricultural production....... Probably not a bad idea, but I imagine the bulk of it would be bought up by large corporate farming concerns.
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Old 06-30-2009, 10:11 PM
 
Location: Metropolis
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Interesting. Actually, I think the new bubble is; "EVERYTHING IS GOING TO BE JUST FINE". It just keeps coming, but is it sustainable and rational.
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Old 07-01-2009, 02:39 AM
 
159 posts, read 541,238 times
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Here, I think this is a very strong possibility for food sourcing in the years to come:

5 Urban Design Proposals for 3D City Farms | WebUrbanist


Very unconventional, but could possibly reduce costs of food transportation and safety issues.

I still think that land in the midwest USA will be a huge investment ploy if we are talking bubbles. Plenty of good soil out there. The idea of dirt having value has not been truly exploited either. I could see organic soil being wholesaled to rich buyers, -ie- land untouched by chemical fertilizers and pesticides scooped up and transferred to estates of rich folks who want to have fertile land. Crazy, right? People sell crazier stuff.
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Old 07-01-2009, 06:59 AM
 
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Have any of you spent time in an airplane flying across the US? There are so many areas of open land it's not even funny.
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Old 07-01-2009, 07:04 AM
 
14,256 posts, read 16,629,845 times
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Land can be an excellent investment as, as someone once said, they are not making it any more. But, as with any real estate investment it is all about location, location, location.

My wife bought the lot next to a house she owns (her sister lives there) mainly to prevent anyone building next door and blocking the view. Even with the downturn, we are looking at over 100% profit (based on the unsolicited offers we get) in just a few years.

And we still have the view.
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Old 07-01-2009, 08:39 AM
 
Location: Heartland Florida
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Land can be a great way to lose money. If its value does not increase, you lose money every year to inflation and property taxes. The best land is that which produces crops, or gets income when it is leased out, or provides the owner with a useful service. In order for a speculator to make money it has to be bought cheap enough so its value increases each year beyond the rate of inflation and that year's property tax.
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Old 07-01-2009, 12:10 PM
 
48,507 posts, read 90,602,461 times
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With teh demise of teh housing devlopment its like that land will go downhill with it. Land had a huge increase during recent times. Alot of deveopers are dumping land now days.I think we will slso see less federal support for things like samall frams as the moeny is spent else where like healthcare.There is going to be alot of support programs cut in the coming years to fund the new priorites.
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Old 07-01-2009, 04:38 PM
 
Location: Tucson
42,835 posts, read 83,547,343 times
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Quote:
Originally Posted by nuala View Post
"Those who brought us the crisis have found a new profit-making toy. It’s land-grabbing, 21st-century style. Around the world, private investors and multinational mining, automotive, agrochemical and seed corporations are scouting out and taking over vast tracts of farmland, many in African countries that are still struggling to feed themselves.

Arable land has become the newest commodity for the speculators that author Naomi Klein so aptly describes as "disaster capitalists" because they profit from disasters, often ones they help create.
Interesting... I hope you're right 'cause I have some farmland overseas.

It might be better to keep it, though...
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