Farmland Investors Go Global

All Things Considered:

In some countries of Africa, there's a land rush under way as investors claim farmland, establish mega-farms and try to cash in on high prices for food and biofuels. These deals are controversial. Critics accuse investors of dispossessing subsistence farmers.
But there's another side to this story. There are plenty of people working in economic development who believe that this surge of interest in African farmland, if it's handled well, could also be an opportunity for Africa.
Investors certainly think so. Among them is Jes Tarp, CEO of a company called Aslan Global Management. A native of Denmark and former pastor, Tarp now lives in Wisconsin and runs a company that owns tens of thousands of acres of farmland in Ukraine and Africa.
The money for these ventures comes from small investors: "There are farmers, there are doctors, there are insurance agents. People from all walks of life," Tarp says.
Tarp tells these investors that they will do well. The farms in Ukraine are already profitable. And Tarp thinks the one in Africa eventually will yield "solid returns" of 15 to 20 percent each year.
But according to Tarp, his investors also want to do some good in the world. "The one thing that they have in common is, they are looking for an investment where their investment will make a difference," he says.
Some of their money is transforming a remote corner of Mozambique, in southern Africa. It's financing a farm called Rei do Agro, Portuguese for "King of Agriculture."

This seems crazy to me.  We've already arbitraged global labor to screw developed countries.  Now we are arbitraging land and food to screw third world countries.  It just doesn't make sense.   Maybe things will work out for the best, but I'm doubtful.