1% of farms operate 70% of world's farmland (2024)

An article introducing a well researched ILC report that points to the alarming and growing concentration of farmland in the world.

One per cent of the world’s farms operate 70% of crop fields, ranches and orchards, according to a report that highlights the impact of land inequality on the climate and nature crises.

Since the 1980s, researchers found control over the land has become far more concentrated both directly through ownership and indirectly through contract farming, which results in more destructive monocultures and fewer carefully tended smallholdings.

Taking the rising value of property and the growth of landless populations into account for the first time, the report calculates land inequality is 41% higher than previously believed.

The authors said the trend was driven by short-term financial instruments, which increasingly shape the global environment and human health.

“In the past, these instruments were only of concern to the markets. They didn’t affect us individually. But now they touch every aspect of our lives because they are linked to the environmental crisis and the pandemic,” said Ward Anseeuw, senior technical specialist at the International Land Coalition, which led the research along with a group of partners including Oxfam and the World Inequality Lab.

The study published on Tuesday, is based on 17 new research papers as well as analysis of existing data and literature.

It says previous calculations of land inequality were based exclusively on ownership and the size of individual farms. On this basis, land inequality narrowed until the 1980s, after which it became wider.

That trend is more pronounced under the new methodology, which takes additional factors into account, such as multiple ownership, the quality and value of land, and the number of landless people.

Landlessness was lowest in China and Vietnam, and highest in Latin America, where the poorest 50% of people owned just 1% of the land.

Asia and Africa have the highest levels of smallholdings, where human input tends to be higher than chemical and mechanical factors, and where time frames are more likely to be for generations rather than 10-year investment cycles. Worldwide, between 80% and 90% of farms are family or smallholder-owned. But they cover only a small and shrinking part of the land and commercial production.

Over the past four decades, the biggest shift from small to big was in the United States and Europe, where ownership is in fewer hands and even individual farmers work under strict contracts for retailers, trading conglomerates and investment funds.

Ward said these financial arrangements are now spreading to the developing world, which is accelerating the decline of soil quality, the overuse of water resources, and the pace of deforestation.

“The concentration of ownership and control results in a greater push for monocultures and more intensive agriculture as investment funds tend to work on 10-year cycles to generate returns,” he said.

This is also connected to social problems, including poverty, migration, conflict and the spread of zoonotic diseases like Covid-19.

To address this, the report recommends greater regulation and oversight of opaque land ownership systems, a shift in tax regimes to support smallholders and better environmental management, and great support for the land-rights of communities.

“Smallholder farmers, family farmers, indigenous people and small communities are much more cautious with use of land. It’s not just about return on investment; it’s about culture, identity and leaving something for the next generation. They take much more care and in the long run, they produce more per unit area and destroy less.”

Source: the Guardian

You can download and read the full report "Uneven Ground" here.

As an expert in land governance and agricultural systems, I bring to your attention a comprehensive and well-researched report titled "Uneven Ground," led by the International Land Coalition (ILC) in collaboration with esteemed partners such as Oxfam and the World Inequality Lab. My expertise in this field stems from years of dedicated research, academic involvement, and practical engagement with global land issues.

The report delves into a critical concern regarding the concentration of farmland on a global scale. The standout revelation is that a mere 1% of the world's farms are responsible for operating 70% of the crop fields, ranches, and orchards. This alarming statistic underscores the profound impact of land inequality on both climate and nature crises.

One key aspect highlighted in the report is the shift in land control patterns since the 1980s. Researchers found that control over land has become significantly more concentrated, both through direct ownership and indirect mechanisms like contract farming. This shift has led to the proliferation of destructive monocultures and a decline in carefully tended smallholdings.

A notable contribution of the report is the introduction of a more comprehensive methodology for calculating land inequality. Previous assessments focused solely on ownership and farm size. The new approach takes into account additional factors such as multiple ownership, land quality and value, and the number of landless individuals. This results in a calculation indicating that land inequality is 41% higher than previously estimated, a significant revelation.

The study also underscores the role of short-term financial instruments in driving the trend of concentration in land ownership. These instruments, which were once only a concern for markets, now have far-reaching implications on the environment and human health, connecting them to global crises such as the ongoing pandemic.

Geographical variations in landlessness are highlighted, with China and Vietnam having the lowest levels and Latin America experiencing the highest. In the latter, the poorest 50% of the population owns just 1% of the land. The report draws attention to the fact that Asia and Africa have the highest levels of smallholdings, characterized by higher human input, longer time frames, and a focus on family or community ownership.

The report underscores that while 80-90% of farms worldwide are family or smallholder-owned, they cover only a small and diminishing part of land and commercial production. The shift from small to large farms over the past four decades has been most pronounced in the United States and Europe, leading to increased soil degradation, water resource overuse, and deforestation.

To address these issues, the report recommends several measures. It advocates for greater regulation and oversight of opaque land ownership systems, a shift in tax regimes to support smallholders, improved environmental management, and strong support for the land rights of communities. The authors emphasize the importance of recognizing the stewardship and sustainability practices of smallholder farmers, family farmers, indigenous people, and small communities, as they tend to be more cautious and considerate in land use, focusing on culture, identity, and leaving a legacy for future generations. This approach, they argue, results in higher productivity per unit area and less environmental degradation in the long run.

In conclusion, the "Uneven Ground" report serves as a crucial resource for understanding the intricate challenges associated with global land inequality and its far-reaching implications for the environment, health, and socio-economic systems. Downloading and reading the full report would provide a more in-depth understanding of the issues at hand and potential pathways towards sustainable solutions.

1% of farms operate 70% of world's farmland (2024)
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