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Published byJames Austin Modified over 8 years ago
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Securing livelihoods, land and natural resource rights through partnerships between small-scale farmers and outside investors: Lessons from IFAD Steven Jonckheere International Fund for Agricultural Development Land and Poverty Conference, World Bank, March 2014
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Context Renewed interest in agricultural investment Large-scale acquisitions of farmland Polarised debates about “land grabbing” Alternative ways of structuring agricultural investments
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IFAD and agricultural investments Identifying private-sector models that strengthen land and natural resource rights and boost agricultural development & introducing project models with private- sector investment Key principles: -Smallholder family agriculture is a business -Overcoming gender inequalities and empowering women -Land is fundamental to the lives of poor rural people -Deepening engagement with the private sector
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Assessing value sharing Economic viability is a precondition for agricultural investments to benefit the local population Focus on the way in which business models share value between the business partners Four closely interlinked criteria Value sharing OwnershipVoiceRiskReward
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Examples from IFAD supported projects
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Swaziland – Lower Usuthu Smallholder Irrigation Project Business model - Sugar cane - Nucleus estate & contract farming - Smallholders, Ubombo Mill & Government Ownership- Ubombo (nucleus, shares) - Smallholders (land sharing, farmer companies) Voice- National (SSA) - Mill (mill group committee) - Farm (farmer company) Risk- Smallholder (production, rejection, price) - Ubombo (marketing, price) Reward- Smallholder (income,services, food security, paid jobs) - Ubombo (supply, sales, co- investment)
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São Tomé & Principe - Participatory Smallholder Agriculture and Artisanal Fisheries Development Programme Business model - Organic and fair-trade cocoa - Contract farming - Smallholders, Kaoka, CaféDirect & Government Ownership- Smallholders (land distribution, cooperatives) - Companies Voice- Associations and cooperatives - Forum for community needs Risk- Smallholder (production, rejection, post-harvest) - Companies (quantity, quality, market) Reward- Smallholder (sole buyer, income, services, self-esteem) - Companies (supply, sales)
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Lessons learned No single model emerges as the best possible option Willingness of the company to engage with more inclusive business models as a genuine economic component of their business Negotiating power of smallholders -Security of local land rights (engaged in agriculture production directly/agricultural production carried out by agribusiness) Smallholders’ access to information Monitor impact at household level IFAD’s role -Act as broker and facilitator -Strengthen the capacity of host governments and smallholder groups to negotiate and manage contracts with agribusiness -Policy dialogue and knowledge sharing
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