OVERSEAS FARMLAND INVESTMENTS A BOON OR A BANE
OVERSEAS FARMLAND INVESTMENTS – A BOON OR A BANE FOR FARMERS IN ASIA? Raul Q. Montemayor National Business Manager Federation of Free Farmers Cooperatives, Inc. (FFFCI) - Philippines
Outline Introduction ¡ Drivers of Overseas Farmland Investments ¡ Modes of Farmland Investment ¡ Issues and Concerns ¡ Recommendations ¡
Introduction Foreign investments in farmlands and agriculture not exactly new ¡ But trend has been increasing perceptibly in recent years ¡
Drivers of Farmland Investments Commercial/business incentive ¡ Trade liberalization ¡ Food security ¡ Food safety concerns ¡ Energy security and biofuels ¡ Expected gains by recipient countries from investments ¡
Modes of Farmland Investments Land purchase and development ¡ Long-term lease, often with joint venture with local investors ¡ Contract growing with local farmers ¡ Anchor firm cum contract growing ¡
Issues and Concerns Potentials gains from farmland investments sizeable, but we need to consider: ¡ Displacement of landowners and increased landlessness and land insecurity ¡ Policy inconsistencies ¡ Food security concerns ¡ Expected benefits may not materialize ¡ Environmental impacts ¡ One-sided contracts ¡ What if governments helped the farmers instead?
Recommendations Overseas farmland investments are not bad per se, but need to find winwin solutions ¡ Clear and consistent national policy framework as basis for land use and foreign investment policies and rules ¡ Strict compliance rules for investors ¡ Protection for small landowners and workers ¡ Local farmers, not foreigners, are the more important investors ¡
- Slides: 7