The IISD Guide to Negotiating Investment Contracts for Farmland and Water CARIN SMALLER March, 2015

CONTENTS Legal framework for investment in agriculture Deciding what type of investment to promote Designing the contract Monitoring and enforcement

1. The legal framework for investment in agriculture Domestic law Contracts (or other legal instrument) Investment treaties Soft law: CFS-RAI, VGGT, LPI, Guiding Principles on LSLBI, etc… …IMPLICATION? Contract and treaty prevail over domestic law

2. Deciding what type of investment to promote Starting point is national strategy for agriculture and rural development Are the conditions ripe? screening investors, identifying suitable land and water, climate change (the scientific equation) Are communities involved? Mapping land and water rights, community engagement (the human equation)

3. Designing the contract Can be a contract/permit/licence/other Domestic law is “holy” The IISD Guide as a checklist IISD model provisions as examples NOT a blueprint The contract as a public document

3. Designing the contract Take feasibility studies & business plans seriously Give guidance on impact assessments & management plans Target financial & tax incentives Make promises legally binding (realistic and achievable) Water permits and fees Exit strategy – assignment and return of unused land (termination)

4. Monitoring and enforcement Do not underestimate costs and time involved (put resources aside) Annual reporting on implementation of commitments Periodic reviews (business plans, management plans, water use) Transparency and access to information Grievance mechanisms International arbitration

Thank You Carin Smaller