Competing Demands for Land: Energy, Food and Forestry

Master the Moment and Reach Your Peak with Defoes

“Land is no longer assessed solely by what it produces today, but by how flexibly it can support food, energy, timber, carbon and resilience tomorrow. The strongest opportunities may emerge where infrastructure and natural capital reinforce one another over the long term.”

Land is becoming a more strategic resource. It must support food production, timber supply, biodiversity, housing, infrastructure and a rapidly expanding low-carbon energy system. For investors, land-use decisions increasingly shape not only environmental outcomes but also the durability, permissions and long-term relevance of real-asset opportunities.

The question is not simply whether land should support energy, agriculture or forestry. It is whether each hectare can be assessed for its highest and most resilient long-term use.

The Pressure on Productive Land

Renewable power requires physical space. Solar arrays, wind farms, grid connections and associated infrastructure all depend on access to land, often close to transmission networks and centres of demand. At the same time, agricultural land is pressured to maintain food supply amid population growth, changing diets and more volatile weather conditions.

Forestry adds another layer of value. Productive timberland can generate biological growth and support supply chains for construction materials, packaging and other wood products. Well-managed forests may also contribute to carbon storage, watershed protection and biodiversity outcomes.

These uses can compete directly, particularly where land is fertile, well connected and located near growing population centres. A project that appears attractive in isolation may face a more complex reality when agricultural productivity, community acceptance, environmental constraints and grid access are considered together.

For clients assessing real assets, the central issue is not land area alone. It is the quality of the land, the legal and planning framework around it, and the flexibility of its future use.

Storage Changes the Equation

Battery energy storage is becoming an important part of this calculation. Storage can capture electricity when wind or solar generation is abundant and release it when demand is higher or supply is constrained. The International Energy Agency describes battery storage as the fastest-growing clean-energy technology in the power sector, reflecting its increasing role in supporting secure energy transitions.

Unlike large-scale generation assets, battery projects can often be developed on comparatively compact sites, particularly near substations, grid bottlenecks or existing industrial infrastructure. This may reduce the need to convert large areas of productive agricultural land or forest into energy sites.

Battery technologies are not identical, however. Lithium-ion systems currently dominate many applications because of their performance, maturity and scalability. Within that category, lithium iron phosphate chemistry is often associated with durability and safety characteristics, while other chemistries may be used where different performance requirements apply. Sodium-ion, zinc-based, flow batteries and solid-state technologies are among the alternatives being developed to address cost, duration, safety and critical-mineral considerations.

The relevant question is therefore increasingly specific: which technology is appropriate for the location, required duration, grid connection and operating profile?

Complementary, Not Competing Uses

A more sophisticated approach treats land use as a portfolio of complementary functions rather than a binary contest. Solar can, in certain settings, coexist with agricultural activity. Forestry may support timber production while maintaining habitat, water management and carbon objectives. Energy storage can strengthen local grids without requiring the footprint of generation infrastructure.

This does not eliminate trade-offs. Bioenergy illustrates the difficulty. Where dedicated crops are grown for energy, they may displace food production or carbon storage that the same land could otherwise provide. The World Resources Institute notes that dedicated land use for bioenergy necessarily carries an opportunity cost against food, feed or carbon storage.

Integrated planning matters. The FAO has emphasised the importance of cross-sectoral land-use planning that considers the connections between agriculture, forestry and wider land-use change. For landowners, developers and capital providers, this means examining land not only for immediate revenue potential but also for planning durability, environmental performance and stakeholder alignment.

Long-Term Implications

The strongest long-term opportunities may emerge where infrastructure and natural capital reinforce one another. Storage located near existing networks, development on previously disturbed land, and projects designed around local agricultural or forestry realities may face fewer conflicts than developments that treat land as an interchangeable input.

This requires discipline. Battery systems involve technology, supply chain, permitting, grid and revenue model risks. Forestry faces exposure to fire, pests, weather and evolving sustainability standards. Agricultural values may be influenced by commodity markets, water availability and policy. None of these asset classes should be assessed through a single-theme lens.

For internationally minded investors and landowners, the opportunity lies in understanding how changing energy systems affect the value, optionality and resilience of real assets. The future of land is unlikely to belong exclusively to energy, food or forests. It is more likely to reward well-located, well-managed assets capable of serving several long-term needs at once.

Disclaimer: The content provided herein is for general informational purposes only and does not constitute financial or investment advice. It is not a substitute for professional consultation. Investing involves risk, and past performance is not indicative of future results. We strongly encourage you to consult with qualified experts tailored to your specific circumstances. By engaging with this material, you acknowledge and agree to these terms.