From Local Hands to Global Funds: The Shift in Farmland Power

(Analysis) Foreign investors and corporations have dramatically increased their purchases of farmland across the globe over the past two decades.

This trend, documented by organizations such as FIAN and Focus on the Global South, is changing the way agriculture operates and who controls the world’s food systems.

The consequences reach far beyond the fields, affecting rural communities, national economies, and the future of food security. Since 2000, foreign investors have acquired about 90 million hectares of farmland worldwide.

This area is roughly twice the size of Germany. The largest deals have taken place in Africa, Latin America, Southeast Asia, and Eastern Europe. Africa alone accounts for more than a quarter of all transnational land acquisitions since 2019.

Some single deals in Africa, like a recent carbon offsetting agreement, cover millions of hectares—amounting to 10% of Liberia’s land and 20% of Zimbabwe’s. These figures come from peer-reviewed studies and official land monitoring organizations.

In Latin America, land ownership has become extremely concentrated. Just 10% of farms now control up to 75% of all farmland in the region. In Eastern Europe, land prices have tripled over the last 15 years, attracting foreign investors and pushing small farmers out of business.

The decline of small-scale farms in Europe has become irreversible in many areas, making it nearly impossible for new or young farmers to enter the sector. Pension funds and investment firms have emerged as major players in this global land rush.

The US-based pension fund TIAA, for example, has acquired large tracts of farmland in Brazil and other countries. These acquisitions often use complex legal structures to bypass national restrictions on foreign ownership.

Investors see farmland as a stable and appreciating asset, especially during times of economic uncertainty and inflation. They focus on regions like Brazil’s Cerrado, where they convert native vegetation into industrial-scale agriculture.

The shift in land ownership patterns has significant effects on local communities and food systems. When foreign investors buy large areas of land, they often convert diverse smallholder farms into monoculture plantations or cattle pastures.

This change reduces the variety of crops grown, undermines local food security, and increases dependence on imports. In Africa and Asia, these changes have led to less diverse diets and greater food insecurity.

In Latin America and Eastern Europe, the impact is more indirect, but the concentration of land ownership still weakens rural economies and reduces opportunities for local farmers.

Environmental consequences also follow these deals. Clearing land for large-scale agriculture often leads to deforestation, loss of biodiversity, and soil degradation.

The Brazilian Cerrado, one of the world’s richest ecosystems, has lost vast areas to soybean and cattle farming. Local communities frequently lose access to traditional lands, and conflicts over land rights have become common.

Forced evictions and violence have occurred in several high-profile cases, according to official reports and land rights organizations. From a mercantile perspective, these land deals make sense for investors seeking stable returns and asset security.

Farmland offers long-term value and can hedge against inflation. However, for nations selling or leasing their land, the deals can mean losing control over strategic resources.

When a handful of foreign investors and corporations control large portions of a country’s farmland, they can influence food production, prices, and even government policy. The growing concentration of farmland ownership has sparked calls for stronger regulation and greater transparency.

Governments and international bodies face pressure to protect local communities, enforce land rights, and ensure that land remains accessible to those who depend on it for their livelihoods.

The debate now centers on how to balance the interests of investors with the needs of rural populations and national food security. The global farmland grab is not just a story about land.

It is about power, control, and the future of food. As foreign investors reshape agriculture, the world must decide who benefits from the land—and who bears the costs.

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