Farmland sales are expected to surge to a record high of more than $5 billion in 2021 as cashed-up farmers expand their holdings and institutional investors ramp up exposure to one of the best-performing real estate sectors, underpinned by the increasing demand for food globally.

That is the view of rural agents at Colliers, whose latest annual Agribusiness Research and Forecast report found total farmland investment (sales above $5 million) reached $4.4 billion last year, almost matching the $4.5 billion achieved in 2019 despite COVID-19 restrictions and a stricter foreign investment regime making it harder for offshore investors.