Population growth, the increasing consumption of a global elite and an international legal system skewed in favor of large-scale investors are fueling a worldwide rush for land that is unfolding faster than previously thought and is likely to continue, according to the largest study of international land deals to date.
Researchers estimate that more than 200 million hectares of land have been sold or leased between 2000 and last year. However, although the food price crisis of 2007-2008 may have triggered a boom in international land deals, the study says that a much broader set of factors — linked to population growth and the rise of emerging economies — is raising the prospect of “a new era in the struggle for, and control over, land in many areas of the global south.”
Forty civil society and research groups fed into the global commercial pressures on land research project, coordinated by the International Land Coalition (ILC), which draws on a decade of data to identify and analyze trends in large land acquisitions and highlights the role of governments in brokering deals that may marginalize rural communities and jeopardize the future of family farming in favor of big industrial projects. This is the most comprehensive study to date of international land deals, pulling together findings from investigations around the world.
Over the last year a number of reports have focused on cases of foreign investors “grabbing” large tracts of land in poor African countries to grow cheap food for their own populations. However, according to a study published by the ILC on Wednesday, rich national investors play a much larger role than previously thought, food is not the main focus of these deals and African governments are not the only ones signing away large tracts of land.
Data collected by researchers show that about 40 percent of land acquired over the last decade is intended for biofuel production. In comparison, 25 percent is for food crops and another 27 percent for mining, tourism, industry and forestry. However, the focus of land deals also varies by region: In Africa, 66 percent of land deals cross-referenced by researchers are intended for biofuel production, compared with 15 percent for food crops. Meanwhile, food production seems more significant in Latin America (27 percent), along with mineral extraction (23 percent).
The report also notes that regional dealings may be on the rise: In Southeast Asia, for example, 75 percent of reported land deals have been struck by regional players and South African investors have acquired an estimated 40.7 million hectares of African land since 2009. The full data from the Land Matrix research project will be published next year.
Though policymakers seem to have recently warmed to the potential role of family farms, the report says enthusiasm for industrial-scale agriculture continues to sideline small farmers.
Many developing countries, under pressure from the IMF, the World Bank and a number of government aid agencies, are going to great lengths to attract and legally protect foreign investment in agriculture and extractive industries, setting up sophisticated specialized agencies to promote investment opportunities and offering benefits such as tax breaks and low prices, the ILC said.
Last week, the US aid agency USAid hosted an international conference to promote foreign investment in South Sudan. Research by the US-based Oakland Institute suggests that almost 9 percent of South Sudan’s land had already been leased or bought by investors prior to the country’s independence in July.