Saudi Arabia is Snatching Up American Farmland


Saudi Arabia is betting on land rights and using American’s freedoms against them in an economic battle that will only get more competitive in the near future.

From CNBC:

Saudi Arabia and other Persian Gulf countries are scooping up farmland in drought-afflicted regions of the U.S. Southwest, and that has some people in California and Arizona seeing red.

Saudi Arabia grows alfalfa hay in both states for shipment back to its domestic dairy herds. In another real-life example of the world’s interconnected economy, the Saudis increasingly look to produce animal feed overseas in order to save water in their own territory, most of which is desert.

The hay provides nourishment to dairy herds as stated but it really provides milk without using and of Saudi Arabia’s resources. We give up the water to grow the hay. Saudi Arabia… gets the milk for free so to speak.

A big concern is if the Saudis will get into sending hay to China, which could undercut American exports buy a huge factor. As high as 20% of American exported hay goes to China.

Labor squabbles of course play a role as well because the democrat unions continue to support rules that constantly undermine their own supporters.

For instance:

It also didn’t help that some international dairy customers in 2014 found other sources for hay due to the U.S. West Coast port labor dispute.

Of course, Americans footed the bill for dockworkers demanding $200,000+ salaries.

That’s not a problem the Saudis will face and we better wise up if want to compete in the “global economy.”

Saudi Arabian haymaking is here to stay unless we want to strengthen regulations, something that will surely backfire on American landowners as well.

Hopefully, the populist uprising that began in 2016 can establish the entitlement of Americans to constitutional rights and that foreign investors pay for the privilege to make industry here.

It’s what happens to us when we work overseas.

Source: CNBC



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