For countries dependent on agriculture, the recent wave of investor interest in farmland could, in principle, help set in motion a virtuous cycle of economic growth and poverty reduction. A large literature documenting failure of such investments documents the risks involved. To appreciate associated opportunities and challenges, we review past experience, quantify country‐level potential for area expansion versus intensification, and identify determinants of countries’ attractiveness for investors in the initial stages of the “land rush.” The fact that weak land governance seems to increase, rather than reduce, land demand justifies an emphasis on improving institutions, transparency, and accountability while at the same time providing concrete suggestions for policy and research.