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

Context Renewed interest in agricultural investment Large-scale acquisitions of farmland Polarised debates about “land grabbing” Alternative ways of structuring agricultural investments

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

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

Examples from IFAD supported projects

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)

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)

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