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Monday, July 8, 2013

If you were to fly at night over almost any of the world’s fertile areas, you would see the lights of many people, who live and work there.

By contrast, if you were to look down, while flying at night over Nicaragua, you would mostly see darkness.

Nearly half the country consists of rich soil, which receives plenty of rainfall.

Nevertheless, only a third of Nicaragua’s arable land is farmed, according to recent World Bank data.

Uncertainty of ownership rights is a main reason for the low level of farming.

In addition, poor logistics make it hard to export perishable products.

On the other hand, land is cheap.

A serious investor would have the resources to protect legal title to his or her property.

The logistics situation should improve within the next few years, following the expected construction of a new highway to the Costa Rican port of Limón, used for most goods moving in and out of Nicaragua.

Various Chinese investors have recently expressed interest in a potential canal project in Nicaragua.

But the chances are remote, of such a project succeeding.

Chinese and other investors might be better off becoming farmers in a fertile country, less than 48 hours by ship to the United States.