Knowledge

Drawing on a literature review, this report examines a range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions. A business model is the way in which a company structures its resources, partnerships and customer relationships in order to create and capture value – in other words, a business model is what enables a company to make money. Business models are considered as more inclusive if they involve close working partnerships with local landholders and operators, and if they share value among the partners.

Recent years have witnessed a renewed interest in public and private-sector investment in agriculture. Concerns about longer-term food and energy security and expectations of increasing returns from agriculture underpin much recent agricultural investment. Some have welcomed this trend as a bearer of new livelihood opportunities in lower- and middle-income countries. Others have raised concerns about the possible social impacts, including loss of local rights to land, water and other natural resources; threats to local food security; and, more generally, the risk that large-scale investments may marginalise family farmers. The recent debates about “land grabbing” – the media characterisation of large-scale farmland acquisitions in lower- and middle-income countries – illustrate these trends and positions. 

Over the past 12 months, large-scale acquisitions of farmland in Africa, Latin America, Central Asia and Southeast Asia have made headlines in a flurry of
media reports across the world. Lands that only a short time ago seemed of little outside interest are now being sought by international investors to the tune of
hundreds of thousands of hectares. And while a failed attempt to lease 1.3 million ha in Madagascar has attracted much media attention, deals
reported in the international press constitute the tip of the iceberg. This is rightly a hot issue because land is so central to identity, livelihoods and food security.

Secure access by rural poor people to both land and water is central to the achievement of the Millennium Development Goals, in particular the target of reducing by half the proportion of people living in extreme poverty and hunger by 2015.

Most of these people depend on agriculture for their livelihoods.

However, international debate continues to address land and water issues separately, and to view the significant use of water in agriculture as problematic.

A pesar de que las personas pobres que viven en las zonas rurales son los principales productores agrícolas del mundo, en muchos casos no tienen acceso a sus tierras y no ejercen control sobre los recursos naturales de los que depende su subsistencia.

This paper outlines the social and environmental reasons why the international development community should give higher priority to helping poor people,
especially those in areas that are biophysically marginal or socio-economically marginalized. Sustainable rural development depends on successfully addressing the
twin challenges of poverty and environmental degradation. There are 1.2 billion people living in extreme poverty, and of these, 900 million live in rural areas where they depend directly or indirectly on agriculture to survive. The paper gives a brief overview of rural development in the context of the Millennium Development Goals and AGENDA 21, which call for concerted action to address the problems of the rural poor and the limitations of their natural resource base.