Food scare sparks Third World land rush

WASHINGTON (Reuters) - High food prices fuelled a land-buying spree in developing nations, particularly in Africa, by countries and private investors wanting to assure food supplies for themselves, a think tank said on Wednesday.

The International Food Policy Research Institute said 15 million to 20 million hectares of farmland in poor nations were sold since 2006, or were under negotiation for sale to foreign entities.

Global recession may slow, but not end, the drive for farmland as a safeguard, said IFPRI Director General Joachim von Braun.

"Food prices will rise again and investment opportunities from a commercial perspective will increase again," he said during a telephone news conference.

The spate of land purchases "is truly a consequence" of the abrupt increase in food prices in 2007 and 2008, and by fears that stockpiles would run short, von Braun said.

The purchases increased local land prices, he said, because comparatively small amounts of land go on sale each year.

IFPRI listed more than four dozen land deals in a report about the "land grabbing." Most were in Africa and some in Asia.

"Food-importing countries with land and water constraints but rich in capital, such as the Gulf states, are at the forefront of new investments in farmland abroad," the report said.

"In addition, countries with large populations and food security concerns such as China, South Korea and India are seeking opportunities to produce food overseas," it said.