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Alternatives to large land acquisitions in developing nations
23.06.2010 09:29 "Agro Perspectiva" (Kyiv) —
New research shows how agricultural investments in developing nations can be structured as alternatives to large-scale land acquisitions. It documents a range of more inclusive business models that can bring benefits to small-scale farmers and protect their land rights, while also ensuring returns to companies.
The report, published today by the International Institute for Environment and Development (IIED), was commissioned by FAO, the International Fund for Agricultural Development (IFAD) and the Swiss Agency for Development and Cooperation (SDC).
It shows that any international guidance on agricultural investments should go beyond minimizing the possible negative impacts of large-scale land acquisitions, to also promote investment models that maximize opportunities for local smallholders.
It shows a range of ways for big investors and local smallholders to collaborate that can be mutually beneficial. It discusses these options under six broad headings: contract farming, management contracts, tenant farming and sharecropping, joint ventures, farmer-owned business and upstream/downstream business links.
No single model emerges as the best possible option for smallholder farmers in all circumstances. In order to benefit smallholders, while still remaining attractive for investors, each specific context must take into account the local land tenure, policy, culture, history, and biophysical and demographic considerations.
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