Rising demand, steep declines in land prices, legislation facilitating foreign investment, and an ideal political and regulatory environment–Danish farmland represents a promising investment opportunity.
Feeding a population expected to grow to 9.6 billion by 2050 will likely prove to be one of the greatest challenges that humanity will face. According to recent forecasts, the world population could reach 10.9 billion people by 2100. As a result, considerable investments will be needed to develop agricultural productivity and increase output. An FAO report published in 2009 estimates that by the year 2050 agricultural production must increase by 70% to meet the needs of this growing population. However, the situation becomes more complex as climate change and urban encroachment on to agricultural land inevitably alter the arable land map. A limited resource, farmland of good quality that is located in favourable climatic zones is highly sought after. During this transitional phase, it is recommended to invest in democratic countries that promote good agricultural practices and are net exporters of food. While Denmark’s health and high-tech industries have traditionally appealed to sophisticated investors, it is within agricultural investments that a window of opportunity currently exists.