International Institute for Environment and Development (IIED) had said that investments fund in agriculture shows a growing interest.
This was made known in a press statement made available to NaijaAgroNet, stating that lands and agribusinesses are on the global rush for investment.
Reasons for the increase in land investment as revealed by IIED could be linked to high long-term returns attributable to rising land prices, growing populations and increasing demand for food.
NaijaAgroNet also gathered that investments in the agrobusiness sector's sources are mostly financial players like pension funds, sovereign wealth funds and rich individuals.
Experts at IIED noted that an estimated US$14billion, about N2.234trillion in private capital has already been committed to investment in farmland and agricultural infrastructure. While a larger part of the fund is based in Europe and North America, whereas the figure according to analysts is expected to be doubled or tripled by 2015.
The potential for land values in Africa, they pointed out is much greater where farmland prices are comparatively low.
Returns on investment, as said by them is largely dependent on the prices of agricultural commodities which is the major reason some investors go for land with high yield potential, investing further in agricultural productivity in order to increase their annual returns.
Further, the fund structures in developing countries are reported to be on the increase, especially as they are being used to invest in agriculture, the investors are also being driven by the high expectation of returns which can be linked to rising land values and productivity.'Yinka Awosanya/ED
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