Private Investments and Agriculture

This briefing note by the International Institute for Sustainable Development (IISD) examines the impacts of large-scale private agricultural investments on local livelihoods, water resources, land tenure, and gender equality. It argues that while such investments can create employment and market opportunities, ill-designed contracts often lead to environmental degradation, water scarcity, and the marginalization of rural communities, particularly women. The document advocates for an integrated approach to planning, utilizing a 'social tenure model' and the Sustainable Development Goals (SDGs) to ensure sustainability and inclusivity.

• Large-scale agricultural investments produce mixed outcomes; positive impacts include employment creation, market expansion, and technology transfer, while negative impacts involve severe environmental damage, poor resettlement, and a lack of community engagement.
• Agricultural investments significantly increase water demand, with some estimates suggesting a 50 per cent increase in irrigation needs. This is often exacerbated by the fact that water rights and extraction rates are frequently omitted from investor contracts, making unregulated water use effectively cost-free.
• In India, government subsidies for electric pumps have led to the extraction of more than 25 per cent of global annual groundwater resources, resulting in depleted water levels and increased energy requirements for pumping.
• Current land tenure practices often favor governments and investors, leaving local communities with weak or non-existent rights. The document proposes a 'social tenure model' that recognizes informal rights (such as customary or indigenous tenure) and uses technologies like GIS and satellite imaging to map these rights before contracts are negotiated.
• Women are disproportionately affected by agricultural investments despite producing 60 to 80 per cent of food in most developing countries (and up to 80 per cent in the Caribbean and sub-Saharan Africa). They face greater burdens in water collection and have weaker access to land tenure and decision-making power.
• Environmental degradation, limited land access, and climate change act as push factors for migration. In areas where male labor migrates to urban centers, women assume primary responsibility for food production but often lack the security or governance voice to manage these changes.
• The Sustainable Development Goals (SDGs) can serve as a framework to ensure agricultural investments are sustainable. Specifically, seven SDGs related to poverty, food security, gender, water, decent work, and inclusive institutions can help maximize synergies and minimize trade-offs in land investment design.

APA

Bizikova, L. (2016). Private Investments and Agriculture. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/private-investments-agriculture-intregrating-sustainability-implementation.pdf

Chicago

Bizikova, Livia. Private Investments and Agriculture. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/private-investments-agriculture-intregrating-sustainability-implementation.pdf.

Wikipedia

{{cite report |last1=Bizikova |first1=Livia |title=Private Investments and Agriculture |publisher=International Institute for Sustainable Development |date=December 2016 |url=https://www.iisd.org/system/files/publications/private-investments-agriculture-intregrating-sustainability-implementation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bizikova2016private, author = {Bizikova, Livia}, title = {{Private Investments and Agriculture}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = dec, url = {https://www.iisd.org/system/files/publications/private-investments-agriculture-intregrating-sustainability-implementation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }