By Cecilia Schubert
Biofuels are a hot commodity, and the private
sector is looking at small-scale farms in developing countries to help produce
crops to feed the industry. Understandably, this is causing controversy, with
accusations of land-grabbing by private companies, and fears that farmers
may swap food crops for more profitable biofuel crops, increasing their risk of
hunger. But what is actually happening behind the headlines? Can farmers really
benefit from the investments or will they only jeopardize food security and
degrade the environment? Is it really a fair deal for everyone involved?
These were some the topics discussed during
International Institute for Environment and Development (IIED) side event ‘Fair
ideas - Making agricultural investments work for small scale farmers’ held
on 17 June during the Rio +20 negotiations. Led by Lindiwe Sibanda, CEO of
Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN), the
panel addressed challenges and opportunities concerning private sector
investment in agriculture. The panel also talked about possible ways forward,
particularly implementation of a model that supports and builds on the needs of
small-scale farmers.
A small-scale farmer in Africa normally owns
less than one hectare of land (sometimes only one-quarter of a hectare), to
produce food for the family and sell some crops at the market. In humid areas,
some farmers raise livestock in addition to farming, while in dry areas
livestock is the primary source of income. Sara Namirembe from World
Agroforestry Centre (ICRAF), described the limited scope for expansion of
African farms, which makes it difficult to combine both production of food
crops and crops aimed for biofuels. In Uganda for instance, farmers who
received payment for producing biofuel crops almost eliminated production of
food crops entirely, leaving the community food insecure. This is one risk
involved in this line of business she explained. Another risk is biofuel
crop failure. Who will compensate the farmer and what type of safety nets are
there? Currently, she said, these safety nets are rare.
Farmers can, however, improve their
negotiation status in relation to the industries investing in their farms, said
Ruud van Eck, Director of Diligent Energy Systems. For example joining together
and getting organized, is one way of strengthening the voices of farmers. He
described how companies want to see farmers organised, to improve communication
and the flow of information. Farmers need access to knowledge and
resources, markets and infrastructure, he said, and many of these inputs are
missing today.
There are many real concerns and challenges,
and more research and local participation is needed before we can ensure that
there is a win-win situation for everyone involved. Policies and regulations
around biofuels and food production are also crucial in order to make sure that
farmers and the environment benefit from this process.
But there are also opportunities for farmers.
Industries are investing, creating opportunities to expand and intensify they
agricultural production. Dr. Sibanda summed up the session by saying that every
player has a role to play: the private sector needs to open the way forward and
be transparent; researchers have to produce better knowledge about the
biophysical and socioeconomic costs and opportunities; and consumer need to
raise their voices and acquire information about the situation. Sustainable
agriculture needs the private sector and success depends on a stronger commitment
by investors, NGOs and policy makers to ensure that investments can contribute
to development goals.
The CGIAR Research Program on Climate Change,
Agriculture and Food Security (CCAFS) was covering the Rio+20 Conference live
between 12 - 22 June. Read the latest stories related to agriculture and
food security from the conference. To get the latest updates follow both CCAFS
on Facebook and Twitter and Agriculture Day Facebook and Twitter.
Join the conversation about agriculture and food security at Rio+20 using #Rio4ag on
Twitter.
Cecliia Schubert is a communications
assistant at the CGIAR Research Program on Climate Change, Agriculture and
Food Security (CCAFS).
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