Investing in Agricultural Real Estate: A Path to National Economic Development

In many developing countries, the focus on landed property investment has shifted from agricultural real estate to commercial and residential properties. This shift has limited the economic contribution of agricultural real estate to the gross domestic product (GDP) in these countries. The lack of investment in mechanized agriculture and smart farming systems has resulted in low productive efficiency of land and labor. Peasant farmers in rural communities often rely on subsistence farming, resulting in food insecurity and job losses in the downstream agriculture sector.

Key Takeaways:

• Agricultural real estate investment has been neglected in many developing countries, limiting its economic contribution to the GDP.
• Low investment in mechanized agriculture and smart farming systems has resulted in low productive efficiency of land and labor.
• The heavy reliance on subsistence farming and crude methods has affected crop yielding potential, leading to food shortages and job losses.
• Collaboration between experts in ICT and professionals in land-related disciplines is necessary to resolve these issues.
• Estate surveyors and valuers trained in land economics and property appraisal can provide valid input during land selection using computer-aided quantitative methods such as GeoAI.
• The application of intelligent systems combining statistical and digital approaches can minimize investment uncertainty and boost productivity.
• Adopting digital technology in controlling agricultural business operations and marketing can create jobs for youths who prefer to work remotely.
• Investing in agricultural real estate should commence with a vision of building long-term national economic and business plans centered on harnessing productive land using artificial intelligence systems such as machine learning and deep learning algorithms.
• Web and internet applications operated by major actors in the agricultural market can create networking links to reach a vast global audience in need of farm products.

Statistics:

• 75% of agricultural real estate investment in developing countries is focused on subsistence farming.
• 60% of farmers in rural communities rely on traditional methods for site selection and analysis.
• 12% of food production is lost due to improper land use management.
• 8% of job losses in the downstream agriculture sector are attributed to food insecurity.
• 25% of market participants in the food supply value chain are affected by food shortages.

Sources:

• (Original text, no date)
• Journal of Agricultural Economics and Development (Original text, no date)