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OVERSEAS FARMLAND INVESTMENTS – A BOON OR A BANE FOR FARMERS IN ASIA?

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

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OVERSEAS FARMLAND INVESTMENTS – A BOON OR A BANE FOR FARMERS IN ASIA?

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  1. 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

  2. Outline • Introduction • Drivers of Overseas Farmland Investments • Modes of Farmland Investment • Issues and Concerns • Recommendations

  3. Introduction • Foreign investments in farmlands and agriculture not exactly new • But trend has been increasing perceptibly in recent years

  4. 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

  5. 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

  6. 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?

  7. 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

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