FAO’s studies on foreign investment in developing country agriculture suggest that the disadvantages of large-scale land acquisitions often outweigh the few benefits to the local community. In countries where local land rights are not clearly defined and governance is weak, large scale land acquisition raises particularly high risks for the local community. Even from the perspective of the investor, land acquisition is unlikely to be the most profitable business model due to the high potential for conflict and damage to reputation.
Conversely, the studies suggest that investments that involve local farmers as equal business partners, giving them an active role and leaving them in control of their land, have the most positive and sustainable effects on local economies and social development. These inclusive business models need strong external support for supporting farmers and facilitating the investor-farmers relationship in order to succeed. They also require ‘patient capital’, as financial returns to investment are unlikely to materialize in the first years.
Beside the business model, other important factors include the legal and institutional framework in the host country, the terms and conditions of the investment contract and the social and economic condition in the investment area. Strengthening the governance and capacity of institutions in host developing countries is essential to enhancing the developmental impacts of foreign agricultural investment.
The agricultural economics literature provides various estimates of the number of farms and small farms in the world. This paper is an effort to provide a more complete and up to date as well as carefully documented estimate of the total number of farms in the world, as well as by region and level of income.
It uses data from numerous rounds of the World Census of Agriculture, the only dataset available which allows the user to gain a complete picture of the total number of farms globally and at the country level. The paper provides estimates of the number of family farms, the number of farms by size as well as the distribution of farmland by farm size.
These estimates find that: there are at least 570 million farms worldwide, of which more than 500 million can be considered family farms. Most of the world’s farms are very small, with more than 475 million farms being less than 2 hectares in size. Although the vast majority of the world’s farms are smaller than 2 hectares, they operate only a small share of the world’s farmland. Farmland distribution would seem quite unequal at the global level, but it is less so in low- and lower-middle-income countries as well as in some regional groups.
These estimates have serious limitations and the collection of more up-to-date agricultural census data, including data on farmland distribution is essential to our having a more representative picture of the number of farms, the number of family farms and farm size as well as farmland distribution worldwide.
The Food Security Information Network (FSIN)* supports the development and harmonization of methods and tools for food and nutrition security analysis. A technical working group composed of renowned experts was constituted to lead the development of a common analytical framework and technical guidelines for resilience measurement.
This paper is an initial step toward the development of resilience measurement design for use by stakeholders (e.g. programme staff, monitoring and evaluation, policy makers). It outlines:
Url to the publication: http://www.fsincop.net/resource-centre/detail/en/c/213177/