13 November 2012: A new report from the Food and Agriculture Organization of the UN (FAO) examines the role of international investment in agriculture and opportunities for positive development and economic impacts on developing countries.

The report, titled “Trends and Impact of Foreign Investment in Developing Country Agriculture,” highlights the importance of linking investors’ capital, technology and management experience with local knowledge and local farmers. It notes that projects that rely primarily on land acquisition are less likely to yield benefits for host countries. The report stresses that these negative impacts are especially likely in cases where land tenure and property rights are unclear or insecure. It underscores significant opportunities for foreign direct investment in agriculture, particularly due to recent high food prices, but stresses the need to avoid large-scale acquisition.

The report notes that jobs are often not created at the level initially projected in land acquisition cases, and that in many cases non-locals receive the jobs. It also explores the dynamics and potential local food security implications when biofuels replace land used for local food crops.

The report recommends that foreign investors share capital with farmers, establish join ventures with cooperatives, and engage marginalized groups in the business model. It calls on policy makers to attempt to maximize benefits of foreign agricultural investment, while minimizing risks. [UN Press Release] [Publication: Trends and Impacts of Foreign Investment in Developing Country Agriculture]