Agri-Park
Here is our analysis of the new Agricultural Policy issued by the Hong Kong government.
The Pantheon
The government is proposing to spend HKD 7 billion to encourage the development and growth of the agriculture sector by establishing a 80 hectare “Agri-Park”. While this is all well and good, the first question we must ask is: what is the governments track record in nurturing sectors other than real estate? The Pantheon of government schemes that produce nothing (other than taxpayer funded or subsidised construction projects) includes: the Science Park, the EcoPark, a CyberPort, an Innocentre and numerous others.
No Pain No Gain
The government will acquire privately-owned agricultural land (including land within the country park zone) from landowners to build the Agri-Park. In a market economy, when supply is fixed and demand increases (due to the government entering the market as a large buyer), prices will rise. The resulting increase in land rental cost will in effect be detrimental to existing farmers. This scheme will hurt the farmers that it is purportedly trying to help.
In this case the pain will be borne by the farmers and gain will be reaped by the construction industry, landowners and bureaucrats.
Innovative Bureaucrats: An Oxymoron
A farmer’s investment is largely comprised of his time and effort in improving the land. Through weeding, cultivation, and enrichment of the soil a farmer creates an environment optimal for plant growth. Unlike a software company incubated in a technology park, the farmer cannot simply move. This scheme can only have been thought up by “innovative” bureaucrats whose experience of farming consists largely of playing FarmVille. Continue reading “Agri-Park”







