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 win- win 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