G8 backs farmland code of conduct, details sketchy

By Silvia Aloisi

ROME (Reuters) - A call by G8 leaders for a code of conduct in international agricultural investments reflects a growing international debate over foreign land purchases in poor countries, but it is not clear how such a code might work.

Group of Eight countries said in a statement at a summit in Italy they would "work with partner countries and international organizations to develop a joint proposal on principles and best practices" in the face of rising investments in foreign land.

The issue is likely to come up again at talks Friday, when the G8 and other countries will discuss a new food security initiative that could result in up to $15 billion being pledged to boost agriculture in poorer nations.

Middle Eastern countries flush with oil cash but also Asian nations worried about their food security -- notably China and South Korea -- have been snapping up farmland abroad after a supply scare drove the price of most food items to record highs last year.

The International Food Policy Research Institute, a Washington-based think-tank, says that since 2006 15-20 million hectares of land in poor countries were sold or were under negotiations for sale to foreign buyers.

Supporters of such deals say the provide new seeds, technology and money for agriculture in economies that have suffered from huge underinvestment for decades.

But the land-buying spree, particularly in Africa, has drawn criticism from aid groups fearing poor countries, and their farmers, are not getting a fair deal.

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