State and Perspectives of Agricultural Land Acquisitions

Abstract

Despite being marginal in both general and scientific public, land acquisitions have brought agricultural land in the unprecedented focus of interest. The causes of these changes are the consequence of, inter alia, the growing world population, which undeniably leads to the increased need for agricultural products. Therefore, in this article the most relevant cause of agricultural land acquisitions is considered – growing food demand. The history suggests that the acquisitions of agricultural lands are not a new phenomenon, but rather a new wave of déjà vu. However, what differentiates this wave of acquisitions from previous ones are, inter alia, its causes. The latest wave of agricultural land acquisitions, according to the general understanding, started with the global financial crisis. In these circumstances, the growing demand for land acquisition began, which led developing countries to realize that the purchase of agricultural land, despite its potentially negative effects, could serve as a catalyst for economic development. We drew the conclusion that more than a third of all the cross-border land acquisitions were caused by the growing food demand. The results of the research show that the growth of land acquisitions follows the growth of world population, implying that the demand for agricultural land will not be stagnant for at least three more decades. In other words, land acquisitions undeniably are in continuo. This implies the need that foreign direct investment policies in agriculture, are defined in a way which would maximise the benefits and minimise any potential drawbacks.