In this article, we will be taking a look at 30 countries with the most arable land in the world. If you want to skip our detailed analysis of the global agriculture industry, you can go directly to see 5 Countries With Most Arable Land In The World.
Arable land can be defined as land that is either currently used or potentially capable of being used to grow seasonal crops. Arable land can be beneficial for any country as it can mean more food and reduced starvation. Countries with more arable land can be more self-sufficient and politically independent as importation of food can be minimized.
More land means more space for activities including gardening, farming and agriculture. In one of our previous articles about the biggest landowners in the US, we mentioned that land is an excellent hedge against inflation. Land can also be an important asset which becomes more valuable with time as the population grows and so does the demand for food and agriculture all around the world.
Agriculture Industry Poised for Growth as Global Population Swells
Previously, the COVID-19 crisis acted as a massive restraint on the global agriculture industry as supply chains were disrupted and consumption declined due to trade restrictions and lockdowns imposed by governments around the world. Moreover, farmers in various countries faced challenges in harvesting and marketing their products. However, as the lockdowns have eased down, the agriculture market has since started to recover.
Russia’s invasion of Ukraine has hurt businesses in the agriculture industry because of the economic sanctions on multiple countries and the supply chain disruptions. It is important to note that Russia ranks among the biggest food producing countries in the world. Despite the challenges that the agriculture industry has been faced with, it is expected to continue growing in the coming years.
According to Research and Markets, the global agriculture industry was valued at around $12.25 trillion in 2022. Looking forward, the agriculture market is expected to grow at a compound annual growth rate of 9.1% during 2023-2027, propelling the market to reach above $19 trillion by the end of the forecasted period.
The world’s population is growing and the growth is not expected to slow down anytime soon. According to the latest estimates by the United Nations, the global population had reached 8 billion in November 2022. It is expected to grow to 9.7 billion by 2050. In one of our articles about the most grown crops in the world, we mentioned that according to the Food and Agriculture Organization (FAO), agricultural production must increase 60% by 2050 to feed the global population.
Rising population has created more demand for food and agriculture. Global farming activities, crop production, and agricultural activities will have to increase to meet the demand as population swells. Agriculture companies are expected to invest increasingly in arable land for agribusiness and crop production to satisfy the demand while also increasing their presence, activities, and profitability. Agribusiness is currently in high demand, and some companies that are expected to benefit as population and demand for food and agriculture grows include Archer Daniels Midland Company (NYSE:ADM), Bunge Limited (NYSE:BG), and Deere & Company (NYSE:DE).
Severe warming, flooding, and droughts may reduce yields and dampen the growth of the global agriculture market in the coming years. On August 28, Reuters reported that according to estimates by authorities and the industry, heavy rains in Chile’s central south farming region could have caused at least $1 billion in losses. The government declared a state of catastrophe because of the extreme weather conditions. Chile is a strong agricultural and forestry exporter with shipments of fresh fruit and nuts, pulp, wine and wood. The government issued an agricultural emergency for 100 municipalities while also approving around $8.3 million to replace irrigation infrastructure, canal systems and other aid measures for farmers.
What are Some of the Biggest Companies in the Agriculture Market Up To?
On August 18, Reuters reported that Deere & Company (NYSE:DE) posted strong profits but investors were concerned as sales are slowing down for the world’s largest farm equipment maker. However, despite volatility in markets worldwide, the demand from farmers looking for new equipment and parts to repair aging fleets is bolstering Deere & Company’s (NYSE:DE) sales. The post also mentions that according to the executives, order books for North American agriculture equipment remain strong and are largely pre-sold for the rest of the year. For fiscal 2023, Deere & Company (NYSE:DE) raised its guidance and said it now expects to report net income in the range of $9.75 billion and $10.00 billion, up from its previous range of between $9.25 billion and $9.50 billion.
On August 18, Deere & Company (NYSE:DE) reported strong earnings for the fiscal third quarter of 2023. The company reported earnings per share (EPS) of $10.20, surpassing EPS estimates by $1.99. The company reported a revenue of $14.28 billion and outperformed revenue estimates by $219.62 million.
Here are some comments from Deere & Company (NYSE:DE) Q3 2023 earnings call:
“Starting from the top, all of our North America large ag production is sold out for this year. We expect ending year-over-year changes in new field inventory to be modest. In-season inventory increases have largely corresponded to our quarterly production schedules, which will come down in the fourth quarter. Combine inventory, for example, saw its highest level in the second quarter and is currently down from its peak. We will see that figure step down further in connection with seasonal retail activity ahead of harvest. And while high horsepower tractor inventory remains sequentially flattish in the third quarter, we’ll see that drop off at the end of the fourth quarter, which is typically the highest retail quarter for tractors. Keep in mind that combines and high horsepower tractors are 95%-plus retail sold to customers already.”
It seems that the adoption of farming robots will grow in the near future as the potential benefits are significant and can revolutionize the agricultural industry. On August 29, Reuters reported that Solinftec, a Brazilian agriculture startup, is looking to speed up deliveries of its farming robots in Brazil and the US. The Solic AG Robotics unit, which costs around $50,000, can scout crops and monitor development of individual plants, and also target-spray herbicide to reduce costs. Britaldo Hernandez, CEO of Solinftec, said that the robot is powered by Artificial Intelligence (AI) and includes a “hunter” feature that uses light beams and electrical shocks to eliminate insects. According to Soliftec, farmers in the US corn belt tested the robot’s sprayer feature and were able to reduce herbicide use by up to 95%. The company claims that the robot aims to help food producers use analytics to improve yields and engage in more sustainable production practices while also avoiding waste.
On June 13, Reuters reported that Bunge Limited (NYSE:BG) and Glencore PLC’s (LON:GLEN) Viterra are merging to create an agricultural trading giant worth about $34 billion including debt. Bunge Limited (NYSE:BG) shareholders will own about 70% of the company as Bunge Limited (NYSE:BG) will pay for a major chunk of the deal with cash. The report also mentions that the deal is unprecedented in size in the global agriculture market. It comes after Bunge Limited (NYSE:BG) posted record adjusted profits in 2022, benefiting from shortage of global grain supplies due to Russia’s invasion of Ukraine. The deal is expected to close in mid-2024.
Now that we have discussed some recent developments in the agriculture sector and what some of the top key players in the market are up to, let’s take a look at the 30 countries with most arable land in the world.
Nitrogen, Fertilizer, Agriculture
Methodology
In this article, we have listed the 30 countries with most arable land in the world. To rank the countries and collect data for our list, we consulted electronic files and websites of the World Bank and the Food and Agriculture Organization. This database provides information on the amount of arable land in each country. We used data obtained for the latest year in their dataset, which is for the year 2020. We have listed the top 30 countries with most arable land in the world below in ascending order.
30 Countries With Most Arable Land In The World
30. Bangladesh
Arable Land: 8.00 Million Hectares
First up on our list of 30 countries with most arable land is Bangladesh, with around 8 million hectares of arable land. Agriculture plays an important role in Bangladesh’s economy and it is also the largest employment sector in the country. It produces a variety of agricultural products including rice, wheat, corn, legumes, fruits and vegetables.
Some of the best agriculture stocks to buy according to hedge funds include Archer Daniels Midland Company (NYSE:ADM), Bunge Limited (NYSE:BG), and Deere & Company (NYSE:DE).
29. Romania
Arable Land: 8.91 Million Hectares
Romania is the first European country in our list of countries with most arable land in the world. It has around 8.91 million hectares of arable land and the main crops include corn, wheat, potatoes, barley, rye, and oats.
28. Poland
Arable Land: 10.92 Million Hectares
With 10.92 million hectares of arable land, Poland is another European country that made it to our list of 30 countries with most arable land in the world. The country’s main agricultural products include rye and potatoes. Poland is also a major producer of cherries, raspberries, currants, apples, and other fruits.
27. Myanmar
Arable Land: 11.01 Million Hectares
Agriculture is the main industry in Myanmar and accounts for about 60% of the country’s gross domestic product. Myanmar has around 11.01 million hectares of arable land as of 2020. The main crops produced in the country include rice, sugar cane, and pulses.
26. Spain
Arable Land: 11.63 Million Hectares
Agriculture in Spain is highly diversified because of the diversity in climate, soil conditions, and topography. With 11.63 million hectares of arable land, Spain is one of the few European countries in our list of 30 countries with most arable land in the world. Barley, wheat, rice, and maize are some of the agricultural crops grown in spain.
25. Germany
Arable Land: 11.66 Million Hectares
With 11.66 million hectares of arable land, Germany is another European country in our list of countries with most arable land in the world. Wheat, barley, maize, and sugar beets are some of the major crops of Germany. The country also uses areas of less fertile soil to grow rye, oats, and potatoes.
24. South Africa
Arable Land: 12.00 Million Hectares
South Africa has 12 million hectares of arable land. The country produces all the major grains except for rice. While South Africa’s most important crops are grains and cereals, the country also produces oilseeds, sugar, and many fruits and vegetables.
23. Democratic Republic of the Congo
Arable Land: 13.47 Million Hectares
With 13.47 million hectares of arable land, Democratic Republic of the Congo ranks among some of the top countries with most arable land in the world. The country’s main crops include cassava, plantain, rice, and a variety of fruits. Other smaller productions of agricultural products can include coffee, cocoa, and tea.
22. Tanzania
Arable Land: 13.50 Million Hectares
Tanzania has around 13.5 million hectares of arable land. The country’s main crops are wheat, rice, maize, sweet potatoes, and sugar cane. Cash crops include cashew nuts, tea, coffee, and sisal.
21. Iran
Arable Land: 15.64 Million Hectares
Iran’s major agricultural products include wheat, rice, and barley. The country is also a major producer and exporter of pistachio. As of 2020, Iran has 15.64 million hectares of arable land, and with that it ranks at the number 21 spot in our list of countries with most arable land in the world.
20. Ethiopia
Arable Land: 16.19 Million Hectares
Agriculture is the backbone of Ethiopia’s economy, employing a huge chunk of the population and also accounting for about 40% of gross domestic product (GDP). The country has around 16.19 million hectares of arable land. Ethiopia produces a variety of food crops including pulses, potatoes, coffee, maize, sugarcane, as well as fruits and vegetables.
19. Thailand
Arable Land: 16.81 Million Hectares
Thailand’s biggest crop production in 2022 was sugarcane. The country also produces cassava, shallot, cashews, fruits and vegetables, and rice. With 16.81 million hectares of arable land, Thailand takes the 19th spot in our list of 30 countries with most arable land in the world.
18. Niger
Arable Land: 17.70 Million Hectares
Niger’s climate is hot and arid and the main agricultural crops include cotton, pulses, rice, and sugarcane. As of 2020, Niger has around 17.7 million hectares of arable land.
17. France
Arable Land: 17.95 Million Hectares
With 17.95 million hectares of arable land, France ranks high among the countries with most arable land in the world and its agricultural production is among the highest in Europe. Country’s major agricultural products include sugar beets, cereals, and oilseeds.
16. Turkey
Arable Land: 19.58 Million Hectares
Agriculture is an important sector of Turkey’s economy, and as of 2020 the country has 19.58 million hectares of arable land. Some of Turkey’s major agricultural products include wheat, sugar beet, cotton, fruits, and vegetables. The country is also the world’s largest grower of oregano, hazelnuts, and apricots.
15. Mexico
Arable Land: 20.07 Million Hectares
With 20.07 million hectares of arable land, Mexico ranks high among the countries with most arable land in the world. It is the third-largest producer of agricultural products in Latin America, after Argentina and Brazil. Mexico’s production helps fill demand for fresh fruits and vegetables in many countries around the world.
14. Sudan
Arable Land: 20.99 Million Hectares
In Sudan, the agricultural sector is an extremely important economic sector. The country has around 20.99 million hectares of arable land. The main crops of Sudan include wheat, cotton, peanuts, sesame, sorghum, and sugarcane.
13. Indonesia
Arable Land: 26.30 Million Hectares
With 26.30 million hectares of arable land, Indonesia ranks at the number 13 spot in our list of countries with most arable land in the world. Indonesia offers a range of diverse tropical products and important agricultural commodities such as rice, tea, coffee, cocoa, cassava, and tropical spices.
12. Kazakhstan
Arable Land: 29.55 Million Hectares
Kazakhstan has 29.55 million hectares of arable land. The country is a major grain exporter, exporting around half of all the grain it produces every year. Major crops of Kazakhstan include wheat, barley, cotton and rice.
11. Australia
Arable Land: 30.64 Million Hectares
While Australia is mostly arid, there is about 30.64 million hectares of arable land in the country as of 2020. Australia is a major agricultural producer and exporter and the country’s main crops include wheat, barley, cotton, pulses, maize, sugarcane, fruits, and vegetables.
10. Pakistan
Arable Land: 30.93 Million Hectares
With 30.93 million hectares of arable land, Pakistan ranks among the top 10 countries with most arable land in the world. Agriculture is considered the backbone of the country’s economy. Pakistan relies heavily on its major crops including wheat, sugarcane, cotton, and rice.
9. Argentina
Arable Land: 32.63 Million Hectares
Argentina is one of the largest producers and exporters of crops like soybean, wheat, corn, and maize. Rice and barley are also produced but mainly for national consumption. Argentina has 32.63 million hectares of arable land as of 2020.
8. Ukraine
Arable Land: 32.92 Million Hectares
Agricultural products are Ukraine’s most important exports, and the majority of agricultural exports include raw goods such as corn, wheat, rapeseeds, and soybeans. The country has around 32.92 million hectares of arable land and ranks among the top countries with most arable land in the world.
7. Nigeria
Arable Land: 35.00 Million Hectares
Nigeria has 35 million hectares of arable land area. It ranks at the number 7 spot in our list of 30 countries with most arable land in the world. The major crops of Nigeria include rice, millet, maize, cassava, guinea corn, and yam beans.
6. Canada
Arable Land: 38.23 Million Hectares
With 38.23 million hectares of arable land, Canada is one of the three countries from North America that rank among the top countries with most arable land in the world. As one of the top exporters of agricultural products, Canada’s exports include wheat, barley, oats and pulses.
Some of the biggest agricultural companies that operate in North America are Archer Daniels Midland Company (NYSE:ADM), Bunge Limited (NYSE:BG), and Deere & Company (NYSE:DE).
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Disclosure: None. 30 Countries With Most Arable Land In The World is published on Insider Monkey.