Information for 12566IIED
Making the most of agricultural investment: A survey of business models that provide opportunities for smallholders
Recent years have witnessed a renewed interest in agricultural investment. In many cases, this has translated into large-scale acquisitions of farmland in lower- and middle-income countries. Partly as a result of sustained media attention, these acquisitions have triggered lively if polarised debates about “land grabbing”. Less attention has been paid, however, to alternative ways of structuring agricultural investments that do not involve large-scale land acquisitions. These include a wide range of more collaborative arrangements between investors and local smallholders and communities, such as diverse types of contract farming schemes, joint ventures, management contracts and new supply chain relationships. Drawing on a literature review, this report explores the range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions.